Income Taxes in Australia

Go Back   Living and Working in Australia Forum With Immigration and Travel Information > Living in Australia > Cost Of Living

Cost Of Living Please use this section of the site to discuss anything to do with the cost of living in Australia. Feel free to post cost of living queries. If you have any current information on actual figures to do with the cost of rent, food, water, electricity, gas etc then it would be really helpful to our members if you could share the information here.

Income Taxes in Australia


Closed Thread
 
LinkBack Thread Tools
  #1 (permalink)  
Old 10-27-2015, 05:24 PM
Active Member
 
Join Date: Oct 2015
Posts: 7
Users Flag! From usa

4 likes received
Income Taxes in Australia

Any and all advice on taxes for American Citizens living in Australia as permanent resident with sc100 visa. But income is all W2 and K1 Shareholders income from American company. I assume I only pay taxes in Australia since I would live there, yet required to file taxes in both countries? Any deductions or tax credits, also trying to forecast tax liabilities. Family of 4, with 2 young children, stay at home mom, and my US income. Apprx 100,000 aud income.


  #2 (permalink)  
Old 11-01-2015, 03:31 PM
Senior Member
 
Join Date: Jul 2015
Location: Australlia
Posts: 5,558
Users Flag! From australia

1100 likes received
325 likes given
Tax can be calculated using this:
Income between $80,001 – $180,000
Tax = $17,547 plus 37c for each $1 over $80,000
Plus 2% medicare levy on total.
If the US income is in joint names then this will change.

__________________
Visa Route: 600/300/600/820/801 PMV to PR 44 months.
Full Timeline: www.australiaforum.com/immigration-timelines/131018

  #3 (permalink)  
Old 11-01-2015, 04:37 PM
Active Member
 
Join Date: Oct 2015
Posts: 7
Users Flag! From usa

4 likes received
Thanks JandE,

I am still very confused about how my Tax situation will play out. Wife and I are both US Citizens with Permanent Resident status in Australia. Since I will live in Australia, but all work income is from US, I am so confused. I guess I have tax questions regarding both Countries.
There is a tax treaty with US and Australia, so I will not pay taxes in both Countries? Do I pay in the country I live, or the country I work? Who gets my money!
When I file US taxes, I assume it gets reduced to zero with the Foreign Earned Income Exclusion, Foreign Tax Credit and Foreign Housing Allowance? So If I would not pay income taxes to the US, how to do I get back taxes taken from my US paycheck since it was W2?
When I files Australia taxes, I am aware of the chart that that specifies the tax %. Is that on Gross Income, or Adjusted Gross Income. Does Australia have deductions and credits to adjust taxable income and liability? Do you get a credit/deduction for children?
I know these are very specific questions, and I will need to contact an accountant with experience, but wanted to get some info before calling so I can ask the right questions.


Sponsored Links
Advertisement
 
  #4 (permalink)  
Old 11-01-2015, 10:59 PM
Senior Member
 
Join Date: Jul 2015
Location: Australlia
Posts: 5,558
Users Flag! From australia

1100 likes received
325 likes given
Australian tax is basically a simple one rate fits all, but with deductions for some allowable expenses dependant on your occupation.

There are no allowances for children etc, like in some countries.
A different department will pay the child allowances fortnightly to those who are eligible.

I normally did UK and Aus tax comparisons, but have no knowledge of US tax workings. Normally the place of residence will get your tax, but I also know that the US needs tax returns done for its people who reside and work overseas, at least in some countries.

You will need a proper accountant who knows both countries systems. Not the common H&R Block type tax agents.

You also need to see if your income from USA can be split somehow between husband and wife before it arrives in Aus, but that only applies if Australia will be the highest taxation figure, and you can receive it as untaxed at source in the US.
You mentioned you get Shareholders income, if these shares were split between husband and wife, then the tax would be lowered.

A good accountant will know exactly what questions to ask you, to get the right results.

__________________
Visa Route: 600/300/600/820/801 PMV to PR 44 months.
Full Timeline: www.australiaforum.com/immigration-timelines/131018

  #5 (permalink)  
Old 01-11-2016, 08:55 AM
Active Member
 
Join Date: Dec 2015
Posts: 13
Users Flag! From usa

I think I also have the same concern for my husband, although we are not yet permanent residents of Australia. Where should he pay income taxes?


  #6 (permalink)  
Old 01-11-2016, 09:01 AM
Senior Member
 
Join Date: Jul 2015
Location: Australlia
Posts: 5,558
Users Flag! From australia

1100 likes received
325 likes given
Quote:
Originally Posted by miawilson View Post
I think I also have the same concern for my husband, although we are not yet permanent residents of Australia. Where should he pay income taxes?
Once tax resident in Australia he will pay Australian tax on his income, and offset that against any tax liability to the US.

With the complex tax structure that the US government has for taxing overseas Americans, I think you will need a specialist...

__________________
Visa Route: 600/300/600/820/801 PMV to PR 44 months.
Full Timeline: www.australiaforum.com/immigration-timelines/131018

  #7 (permalink)  
Old 03-24-2016, 05:27 AM
Active Member
 
Join Date: Mar 2016
Posts: 15
Users Flag! From australia

Hi Nathan ... have you had a look around the Australian Taxation Office (ATO) website ?


Closed Thread

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Maximized Income Tax Return For Low Income Earners akhl accounting Business and investment 0 11-13-2013 11:00 PM
US Citizen paying taxes on income earned in Australia aparker Jobs and work 2 06-12-2013 02:28 AM
Taxes on savings - for Australia immigrants iain Visas and immigration 3 08-04-2011 02:21 PM

LEGAL NOTICE
By using this Website, you agree to abide by our Terms and Conditions (the "Terms"). This notice does not replace our Terms, which you must read in full as they contain important information. You must not post any defamatory, unlawful or undesirable content, or any content copied from a third party, on the Website. You must not copy material from the Website except in accordance with the Terms. This Website gives users an opportunity to share information only and is not intended to contain any advice which you should rely upon. It does not replace the need to take professional or other advice. We have no liability to you or any other person in respect of any content on this Website.


All times are GMT. The time now is 08:58 AM.




Powered by vBulletin®
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
SEO by vBSEO
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2020 DragonByte Technologies Ltd.
AustraliaForum.com