The top 7 tips to claim your tax back
All of you working holiday’rs probably experienced the biggest culture shock coming to Australia…Some of you might have travelled through SE Asia before coming here,- shock free -, but then you received your first payslip in Australia … The amount of tax Australia’s government charges you! Aww lawdy. I needed an entire bag of goon and some comfort food to recover from that one!
But you’re done with sleepless nights, because we’re close to the best day EVER! TAX BACK DAY (Hallleelujah!). I can imagine you’re confused about how and when to claim your Tax back. I mean, I was! So to make it an easy struggle for you guys, I wrote down a few facts that will help you with this confusing, serious business…
Tax Year in Australia
Australia has its own unique financial year. It doesn’t start on 1st January and ends on 31st December. The land down under has its own special financial year, from 1st July to 30th June to be precise.
When can I claim my Backpacker Tax Refund?
The concern I had was… When do I claim my Tax back? Do I have to do it before the end of the year or after? Here’s what I found out…
You can claim your Tax back from 1st July until 31st October. So now, July 2016 you can start claiming back your Tax for financial year 1st July 2015 to 30th June 2016. But, there is an exception to the rule. For us, backpackers that are leaving Australia permanently, we can claim our tax back before the end of Australia’s financial year. An important aspect to take into consideration, you have to be in Australia for at least six months before you can apply for that tax back. It doesn’t matter how many months you’ve worked but the period of time being in Australia does matter… At least six months, that’s the only thing you need to remember!
Do I have to declare my tax or lodge a tax refund?
If you’re in Australia on a Working Holiday Visa, you are eligible to claim your Tax back. Actually, you are legally obliged to file your tax application at the end of the financial year. I know, it might seem like a big burden but if you know that the average Australian refund is AU$2600, do you still think it’s not worth your time?
What do I need to claim back my tax?
You’ll need your PAYG (Pay As You Go) or final payslip in order to apply to get your Tax back. The final payslip is a summary of all the payslips you’ve received during your period of working. Don’t worry; it’s normal that you don’t have it yet. Your employer will be able to provide this to you at the end of the tax year.
What else do I get?
You might not know about this one but you can claim back more money… YOUR SUPERANNUATION! It’s a type of long- term saving plan designed to help Australian people in retirement. You might think… “I’m a backpacker in my 20’s, why would I pay for my retirement in Australia?” Well, here comes the good part… it doesn’t come out of your wages, it’s an additional cost paid by your employer, and you’re the lucky one that can claim it back when you leave Australia!
If you are still confused and need help with claiming your Tax back, feel free to contact us! We here to give you help and advice on anything ‘Working Holiday’! Want to know how much tax back you’ll get? It’s easy! Calculate your possible tax refund here.
Seeing that money go into your bank account is the best feeling and what better way to spend it than on your next adventure! Check out what other travellers get up to for some inspiration!