Perth

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Taxes and Superannuation

Information about tax filing, Tax File Numbers (TFN), and the superannuation retirement savings system in Australia.

Sections

1.1 Overview of the Australian Tax System

Australia has a progressive tax system, meaning the more you earn, the higher your tax rate. The Australian Taxation Office (ATO) is the government body responsible for administering taxes.

Key Tax Categories

  1. Income Tax: Paid by individuals and businesses on their earnings.
  2. Goods and Services Tax (GST): A 10% tax on most goods and services.
  3. Capital Gains Tax (CGT): Tax on profits from selling assets like property or shares.
  4. Medicare Levy: A 2% levy on taxable income to fund public healthcare.
  5. Fringe Benefits Tax (FBT): Paid by employers on non-cash benefits provided to employees.
  6. Payroll Tax: A state tax (in Western Australia) on wages paid by employers exceeding a certain threshold.

1.2 Income Tax for Individuals

Tax Rates for 2023-2024 (Residents)

| Taxable Income (AUD) | Tax Rate | |-----------------------|----------| | $0 - $18,200 | 0% (Tax-free threshold) | | $18,201 - $45,000 | 19% on income over $18,200 | | $45,001 - $120,000 | $5,092 + 32.5% on income over $45,000 | | $120,001 - $180,000 | $29,467 + 37% on income over $120,000 | | $180,001 and above | $51,667 + 45% on income over $180,000 |

Non-Residents

Non-residents are taxed at a higher rate and do not benefit from the tax-free threshold.

1.3 Tax Filing in Perth

Key Deadlines

  • Financial Year: 1 July to 30 June.
  • Tax Return Deadline: 31 October (for individuals filing directly). If using a registered tax agent, you may have an extended deadline.

Filing Procedures

  1. Obtain a Tax File Number (TFN): Essential for working in Australia. Apply through the ATO website or at a local post office.
  2. Lodge Your Tax Return:
    • Online via myTax (accessible through your myGov account).
    • Through a registered tax agent.
  3. Documents Needed:
    • Payment summaries or income statements from employers.
    • Bank interest statements.
    • Receipts for deductible expenses (e.g., work-related costs, donations).
    • Private health insurance details (if applicable).

Local Resources in Perth

  • ATO Office in Perth:
    • Address: 45 Francis Street, Northbridge WA 6003.
    • Services: General tax inquiries, TFN applications, and assistance with tax returns.
  • Tax Help Program: Free assistance for low-income earners (available at community centers in Perth).

1.4 Goods and Services Tax (GST)

  • GST is included in most goods and services prices.
  • If you run a business and earn over $75,000 annually, you must register for GST.

1.5 Medicare Levy and Surcharge

  • Medicare Levy: 2% of taxable income.
  • Medicare Levy Surcharge: Additional 1-1.5% for high-income earners without private health insurance.

1.6 State Taxes in Western Australia

Payroll Tax

  • Employers in WA must pay payroll tax if their total wages exceed $1 million annually.
  • Rate: 5.5% on wages above the threshold.

Land Tax

  • Applies to property owners (excluding primary residences).
  • Rates vary based on the value of the land.

2. Superannuation in Australia

2.1 What is Superannuation?

Superannuation (or "super") is a retirement savings system in Australia. Employers are required to contribute a percentage of your earnings into a super fund, which is invested until you retire or meet specific conditions for withdrawal.

2.2 Employer Obligations

  • Super Guarantee (SG) Rate: 11% of your ordinary time earnings (as of 1 July 2023).
  • Eligibility:
    • Employees aged 18 or older earning more than $450 per month.
    • Employees under 18 must work more than 30 hours per week to qualify.
  • Payment Frequency: At least quarterly (by 28 October, 28 January, 28 April, and 28 July).

2.3 Choosing a Super Fund

  • You can choose your own super fund or use your employerโ€™s default fund.
  • Popular super funds in Australia include AustralianSuper, Hostplus, and REST.
  • Consider fees, investment options, and performance when selecting a fund.

2.4 Accessing Your Super

You can access your super when:

  1. You reach preservation age (between 55 and 60, depending on your birth year) and retire.
  2. You turn 65 (even if still working).
  3. Under special circumstances (e.g., severe financial hardship, terminal illness).

For Temporary Residents

  • Temporary residents leaving Australia can apply for a Departing Australia Superannuation Payment (DASP). Tax rates on DASP are:
    • 35% for taxed elements.
    • 45% for untaxed elements.

2.5 Perth-Specific Considerations

  • Local Superannuation Advisors: Perth has financial advisors specializing in superannuation. Look for certified advisors through the Financial Planning Association of Australia (FPA).
  • Industry Super Funds: Many Perth-based workers in mining and construction use industry-specific funds like CBUS or Mine Super.

3. Practical Tips for New Residents in Perth

  1. Set Up a myGov Account: Link it to the ATO for easy tax management.
  2. Understand Residency for Tax Purposes: Your tax obligations depend on whether youโ€™re classified as a resident or non-resident for tax purposes.
  3. Keep Records: Maintain receipts and records for at least 5 years for tax purposes.
  4. Seek Professional Help: Perth has many tax agents and accountants who can assist with tax returns and superannuation advice.

4. Useful Resources

This guide provides a detailed overview of taxes and superannuation for individuals living or moving to Perth. If you need further assistance, consider consulting a local tax agent or financial advisor.