Australian Immigration Tax Guide

It is very important to introduce Australian immigrant investors and find out which country they are tax residents. Only Australian tax residents need to pay taxes to the Australian tax authorities. This is a tax guide for Australian immigrants. Welcome to read!

Whether you are a tax resident of Australia does not depend on whether you have permanent residence status or whether you are an Australian citizen, but on how long the investor has lived in Australia and how close he is to Australia. Basically, most countries in the world have the rule of "183 days", and Australia is no exception, that is, if you have lived in Australia for 183 days in a year and have a close relationship, then you are a tax resident of Australia, and all the income in the world needs to be taxed in Australia.

Immigrants who meet the status of Australian tax residents need to pay three kinds of taxes: personal income tax, payroll tax paid by enterprises and asset value-added tax.

The main tax in Australia is direct tax, in which personal income tax is the most important, accounting for about 60% of the total federal tax revenue. As a tax resident in Australia, the final tax payable by individuals in Australia is: income tax+medical insurance tax-tax credit-tax paid.

Tax residents and non-tax residents in Australia will also have different tax details. For example, tax residents in Australia will have a tax-free quota of A $6,543,800+082,000, and the Australian Taxation Bureau will only tax the income above A $6,543,800, while all income of non-tax residents in Australia will be taxed, and the tax rate is higher than that of tax residents.

Personal income tax in Australia will be declared according to the annual income. The general principle is that the more you earn, the more you pay. At present, the personal income tax rates in Australia are as follows:

The medical insurance tax is generally 2% of the tax payable, and it is reduced for low-income people. Residents who do not enjoy local medical benefits in Australia (such as non-PR) do not need to pay medical insurance tax.

The most common Australian tax credits are low-income tax credits and bonus credits. Residents earning less than A $66,667 can get a tax credit of up to A $445; Dividend credit means that when investors receive dividends from enterprises, they may be accompanied by "withholding tax", because enterprises have already paid profit tax for them, and withholding tax can greatly reduce the personal income tax that investors need to pay because of dividends. This is also what Australian entrepreneurial immigrants need to pay attention to.

The second tax to be paid-payroll tax-is the tax levied by the Australian government, which is paid by the company according to the salary base and is not withheld from the employee's salary. State governments charge different tax rates. Of course, when you declare your income, you can also apply for tax relief.

The third tax to be paid-capital gains tax-is what Australian immigrants who have real estate in Australia need to know, and they need to pay when selling real estate and land in Australia. The value-added part of the assets (according to the holding time of the property) is fully or partially included in the personal income of the taxpayer in the current fiscal year, and the specific tax amount is calculated. Australian citizens need to declare the appreciation of their properties around the world, while foreigners only need to declare Australian property tax.

It should be noted that while confirming whether you are a tax resident of Australia, you also need to confirm whether you are a tax resident of China, so as to avoid double taxation as a tax resident of two countries in the world. Therefore, special attention should be paid when planning immigration supervision.

Further reading: How should new immigrants in Australia be able to integrate into local life?

1, learn to adapt to each other's frankness.

For China people, they tend to be very cautious when dealing with strangers, and they will talk to each other in a very respectful and careful way; Only after getting to know each other can we talk more casually. However, Australians don't like this "euphemistic" way. Australians speak very bluntly, and sometimes even make people feel that they are too outgoing and reckless. Their words are sometimes disappointing, but please listen carefully and don't be disgusted soon. Observe how they talk to each other, how they react, and feel their humor. New immigrants don't have to learn from them, but they need to understand the meaning of their conversation. In short, we should always treat different things and cultures with a tolerant heart.

2. Respect any stranger

China has been a country of etiquette since ancient times, so the concept of "respect" is deeply rooted in the hearts of China people. Respect for the elderly and love for the young, not contradicting teachers, and the supreme authority of the elderly may be common in many China families. For Australia, it can also be called "the state of etiquette", but its "respect" is completely different from that of China. Australians speak casually, for example, students usually call their teachers by their first names, and their attitudes are not as respectful as we take it for granted. On the other hand, they are equally friendly and informal to others, whether they are secretaries, laboratory technicians, librarians, salespeople, bank employees, cleaners, bus drivers or taxi drivers.

3. Respect privacy when you release yourself.

The word "privacy" was gradually taken seriously in China in recent twenty years. So the concept it brings to China people is still very limited. But in Australia, from age to rent, even the casual way of walking in China is highly valued by local people. Therefore, being familiar with local privacy habits is definitely an essential lesson for Australia. For a long time after new immigrants arrive in Australia, they should avoid talking about Australian politics or criticizing Australia directly-at least at the beginning, let them criticize themselves. What new immigrants need to do is to keep their own ideas.