Tax system in Australia

Taxes are managed through the Australian Taxation Office (ATO). The tax you pay depends on how much you earn.

Getting a Tax File Number

You must obtain a Tax File Number to be able to work in Australia. A tax file number (TFN) is your unique reference number to Australian tax system. When you start work, your employer will ask you to complete a tax file number declaration form. If you do not provide a TFN your employment will be taxed at the highest personal income tax rate, which will mean less money in your wages each week. 

How to apply for Tax File Number (TFN)

If you are an overseas student and your visa has been amended to allow you to work, you can apply for a TFN online at any time after entering Australia. Only one TFN will ever be issued to you. Once you have a TFN, you don't need to re-apply for one if your circumstances change, for example, if you change your name. If you had student visa in the past and left Australia and now you are back in Australia on a new student visa, you will need to notify Australian Taxation Office (ATO) to active your TFN.

Applying for a TFN should take about 20 minutes. You will be asked to enter details including your passport or travel document number, a postal address in Australia where your TFN can be sent, your legal name and other names you use or have used and contact details for yourself or your preferred contact person. You can apply for your TFN online at ATO's website or phone 13 28 65, 24 hour self help services. For the ATO translating and interpreter service phone: 13 14 50.

How to apply for Australian Business Number (ABN)

It's free to apply for an Australian business number (ABN) with the Australian Business Register (ABR). You can apply online or lodge a form by mail. To get an ABN you must be carrying on an enterprise in the form of a business. Your application will be refused if you are not entitled.

When applying for an Australian business number (ABN) online you will be asked to provide details about your entity type or business structure, activities and identity. Your answers will help determine if you are entitled to an ABN. More can be found on ATO's website.

Taxation Returns

If you pay too much tax you are entitled to a refund. To get a refund you will need to lodge a tax return. You can lodge online using e-tax (free), by mailing a paper tax return, or by paying a registered tax agent to complete and lodge the return for you. If you lodge by e-tax your refund you will normally be issued within 14 days.

Superannuation

If your monthly wage is more than AU$450 before tax, your employer must contribute an additional sum equal to 9,5% of your wage into a superannution (pension) account for you. It applies to full-time and part-time employees and some casual employees.

Can I access my superannuation? 

In most cases, you can access your contributions when you leave Australia permanently, although the contributions will be taxed.
To check your eiligibility to claim your superannuation and to apply for your payment, visit: www.ato.gov.au/departaustralia. You will need to provide the details of your supperannuation fund. Your super fund will be requested to transfer your super money to ATO if you haven't claimed it from the fund after a minimum period of six months since you left Australia and your visa ceased to be in effect. ATO will hold your unclaimed super for you until you claim it.