The annual dates for the Australian income year are from July 1st until June 30. This is important to note for anyone moving to the country as these dates may not coincide with those from their home country. The subject of taxation in Australia can be a fairly complex one and can be surprisingly high cost to some who have just moved there.
Non-residents in Australia pay a much higher personal income tax rate – nearly double that of a resident.
For instance, a resident will pay nothing for his income up to $6000 and then .15 for every $1 from $6001-$34000. A non-resident will pay .29 flat rate for every dollar made, beginning with $1 and continuing to $34,000. The Australian government does have a plan called Pay As You Go, or PAYG, which allows the taxpayers, be they business or individual, to incorporate tax payments throughout the year. This is a voluntary programme designed to help people stay on top of thier annual tax bills.
Advantages for non-residents
There are still advantages for those who hold the status of a non-resident in Australia. Both residents and non-residents will declare all of their income on their tax forms and be allowed to take their entitled deductions. A non-resident is not susceptible to the same type of capital gains taxation as a resident is. A non-resident will also not be taxed on income that he has that is not being generated within Australia or does not have a genuine Australian connection. He will be subject to the taxation of that income by whichever country it is connected with.
You may be able to minimise your income tax by a timely move to Australia, as the resident versus non-resident status is very important. Timing of that non-resident status as it relates to an incoming windfall may be played out to your best advantage, but will require the help of tax strategists who are well-versed in Australian tax law.
If you are planning to move a company to Australia, there are many rules that will come into play and will need an accountant to ascertain, however one steadfast principle is that a basic income tax rate for companies stands at 30%.
Australia holds a taxation relationship with New Zealand. If a person should have residency status in both of these countries they are given the chance to make the choice as to which country to allot their residency status.