Backpackers, Visa holders, overseas travellers wanting to work in Australia?
Are you informed of your requirements and obligations of working in Australia?
To work in Australia, you must have a valid visa that allows you to work in Australia. To obtain your visa you will need to contact the Australian Government (Department of Immigration and Border Protection).
You will also need to obtain a Tax File Number (TFN) which is free, no fees or charges. A Tax file number is a unique number that references you to the Australian taxation system.
Once you have your work visa and arrived in Australia, you can apply via the Australian Taxation Office website online. It’s important to have your tax file number (TFN) before you start work, or as soon as possible.
If you don’t have a tax file number, you are still able to work, however you will be taxed at a higher rate meaning that you will have less income.
For security reasons, always remember to keep your tax file number (TFN) confidential, unless you are dealing with an authorised person. Eg. Tax agent, Australian Taxation Office, Employer.
Starting working in Australia.
When you start your job in Australia, your employer will give you a Tax File Number Declaration form which needs to be filled out. This form will tell your employer how much tax to deduct from your wages and your tax file number will been given to a Superannuation fund to accept contributions and be tax at the correct rate.
Superannuation contributions or “Super” as its most commonly known, is Australia’s saving system for retirement. Employers must pay contributions to your super fund if you are paid A$450 before tax, or more on a calendar month. This applies to casual, part-time and full time workers. Provided that you are over 18 years of age or under 18 and work more than 30 hours per week.
Finishing work / end of income year.
Once you stop your employment or the end of the income year finishes (30 June). Your employer will give you a payment summary which shows you how much income you earnt and how much tax was deducted. After 30th of June, You must lodge your annual tax return then a notice of assessment will give to you from the Australian Taxation Office with a tax refund.
If you are leaving Australia permanently, you may be entitled to withdraw your superannuation.