TAX There I said that horrible word but.....

[Que Sera Sera]

Would anyone be able to give me a rough idea how much tax someone would have to pay if for instance they were earning $60,000 are year? Is it like the British system in that you pay more the more you earn or is there a fixed rate also if you were to earn vastly less is there a tax free amount like here?:huh:

[Guest Pinhead]

Assuming you're a permanent resident in the tax year 08/09 you would pay $12,000 of tax on $60,000 plus medicare levy of $900. So your effective tax rate would be 21.5%.

 

Tax in oz is the same as the uk system where by you get a $6K tax free amount and the tax rate gets higher the more you earn.

 

This site gives you the rate for the next few years

Tax Rates

Medicare levy is 1.5% on everything at the $60,000 level.

[Que Sera Sera]

Thanks Pinhead I have added that to my favourites for later. :notworthy:

[Alan Collett]

One fairly material difference in a tax context between the UK and Australia is the relative ease with which in Australia you can claim expenses incurred in deriving assessable income as a tax deduction, reducing your tax bill as a result.

 

The law allowing tax relief on such expenses in the UK is much more restrictive.

 

A good tax accountant should be able to guide you on this subject - it may well be worthwhile seeing one soon after you arrive in Australia to get a better understanding of the receipts and other details you should retain for future need.

 

Best regards.

[Guest Badger Brock]

This is an interesting thread, and the replies very useful, but could someone please tell me if the UK State Pension is included in the calculation of $6,000 or only work pensions? I am moving over to Oz on the Parent visa and will only have my pensions to live on and am hoping I wont be worse off.

 

Cheers, V

[Alan Collett]

It depends on your visa subclass, V.

 

If you are granted a subclass 143 visa - yes the UK State Pension is assessable income in Australia, but with a 8% deduction available for what is called the Undeducted Purchase Price.

 

If you are granted a temporary - ie a subclass 173 - visa - probably not assessable.

 

See also UK Revenue form FD2:

HM Revenue & Customs: UK/Australia Double Taxation Convention (2003)- Forms Available To Claim Relief

 

Best regards.

[Guest Badger Brock]

Hi Alan, sorry to hijack the thread. My subclass is 103, so Im guessing my pension will be assessable. Thanks for the info. V