Taxes

On Arrival

All Arrival Taxes are included in your ticket purchase. You are entitled to tax free entry with the following baggage:

Most personal items, such as:

• 250 Cigarettes

• 2.25 Litres Alcohol

$900.00 of goods including gifts, souvenirs, cameras, electronic equipment, leather goods, perfume, jewellery, watches and sporting equipment.

Goods and Services Tax (GST)

The Australian Government levies a 10% Consumption Tax on all goods and services sold for use in Australia. This tax is called Goods and Services Tax (GST). Food is generally exempt, but dining in a restaurant is not exempt. Food that you buy to cook at home does not attract the tax but if you decide to go to Mc Donald's instead - then the tax is applicable. International travel does not attract the tax as it is not used in Australia. Similarly, Australian Domestic Travel that has been purchased outside Australia is also exempt.

Prices displayed at the point of sale include the GST.

Income Tax

Should you wish to work in Australia, you must apply for permission to do so. This can be done through the Department of Immigration and Citizenship. Once permission has been granted, you will be required to apply for a Tax File Number. This can be done on-line at The website of The Australian Taxation Office (ATO). Your employer will deduct your income tax from your wages according to the Income Tax Schedule.

In addition to your wages, your employer must also contribute the equivalent of nine percent of your gross monthly income to a Superannuation Fund of your choosing.

In addition to your wages, your Employer is obliged to have you covered for Workplace Injury Insurance. In Australia workplace safety is taken very seriously. Workcover Victoria www.business.vic.gov.au/workcover is the governing body that polices the Workplace Safety Law.

Tax File Numbers (TFN)

Tax File Number (TFN) is an ID number issued and used by the Australian Taxation Office (ATO) for tax purposes. It is not an authorization for international students to work in Australia. Every person who works in Australia is required to have a TFN, and only one TFN is issued to a person for their lifetime, irregardless of circumstantial changes, such as name and residency. Therefore, students need to keep their TFN secured.

 When you are authorized to work in Australia, it is recommended you obtain a TFN to supply to your bank and employer because without a TFN, you will pay more tax on any income earned, including interest on bank account(s) than necessary, and may be ineligible to receive any entitled government benefits.

International students can apply for a TFN any time after entering Australia by completing the NAT 4157 form, which is available from the ATO website at www.ato.gov.au, or by phone on 1300720092 to have a copy mailed out. To access the form online, go to the following links on the ATO website:

• Forms and Services

• TFN – Tax File Number Application Form

• Online individual tax file number (TFN) registration

• Apply for a tax file number

When applying for a TFN online, the TFN registration system will compare the applicant’s personal and travel document details with those held on DIAC systems. Once the applicant’s details have been verified, a receipt number will be issued by ATO, usually within 10 working days; however the TFN will take up to 28 days to be issued.

If you choose to complete the application by hand, you can either post your application form and proof of identity documents to the address specified on the NAT 4157 form, or hand them in to the nearest shop front (phone ATO on 132861 between 8.00am and 6.00pm, Monday to Friday to make an appointment). All original proof of identity documents mailed to ATO will be returned to the applicant’s registered mail. Students who choose to submit their documents in person will have their proof of identity documents checked by a tax officer on the spot and returned back immediately after verification.

International students need to supply on their NAT 4157 form their:

• Legal name and other names used or have used;

• Date of birth;

• Current Australian address;

• Current Postal Address in Australia;

• Travel document information

• Contact details and emergency contact person; and

• proof of identity (documents to be examined by the Tax Officer)

Proof of identity documents include:

• Applicant’s passport;

• Original birth certificate

• Overseas or Australian drivers license; or

• Your Ashmark Student ID card (Issued at the Flinders Lane Campus)

The application will detail how many proof-of-identity documents will be required for submission.

Paying Tax in Australia

In Australia, the financial year (income year) commences on July 1st and ends the following year on June 30th. At the end of every financial year, everyone who works will receive a ‘Payment Summary’ from their employer to be used for filing their tax return. International students are treated no differently to Australian residents in terms of paying tax. Once an international student has been in Australia for more than six months they are considered a resident for tax purposes, and are required to pay tax on earnings from work or interest earned from banks. If you are planning to stay in Australia for longer than six months and are intending to work, you must give your employer a ‘Withholding Declaration Form’ from the ATO. This form will account you as a resident of Australia for tax purposes only. It is not an Australian Permanent Residency grant.

For further information on paying tax in Australia, please visit the Australian Taxation Office website at www.ato.gov.au