Step 5. Tax and Superannuation in Australia

Setting up a Tax File Number

It’s essential to get a Tax File Number (TFN) so you can register for tax and get a job. Make this one of the first things you do, as you will be taxed at 47% of your wages if you haven’t given your employer your TFN within 28 days of starting work.

It’s easy to apply for a TFN online. To find out what info you will need, visit the Australian Tax Office website www.ato.gov.au or call on 13 28 61 within Australia.

Tax refunds

As you finish work with each employer, you will need to ask for a payment summary. A payment summary outlines your total income and the tax withheld during your time with each employer.

You will need your payment summary from each employer when it comes time to complete your compulsory tax return, which is done within three months of the new tax year starting (1st July), or when you depart Australian shores, whichever happens first.

As a working holidaymaker in Australia, you will have paid around 29% tax in every job that you have worked, so be sure to find out how to get back as much tax as possible. If you meet certain criteria, you could be classified as a ‘resident for tax purposes’ and have your tax recalculated. As a result, you could qualify for a lower tax rate and claim a refund of the tax you have overpaid.

For more info visit www.travellers.com.au or call them on 1300 361 639.

Superannuation

If you earn more than $450 per month in Australia, your employer is required by law to pay the equivalent of 9% of your salary as superannuation contributions (like a pension plan), into a superannuation fund for you.

Each employer pays superannuation payments to their preferred superannuation fund, which means that as you travel around working for different employers, you will have superannuation payments registered on your behalf with several different funds.

The good news is that once you have left Australia you can claim a percentage of your superannuation payments back, based on the fact that you have no intention of returning in the near future.

For more information visit www.ato.gov.au