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Taxation: new employee information

  • Australian resident
The tax rates that apply to your taxable income depends on whether or not you are an Australian resident. A higher rate of tax is applied to a non-resident's taxable income and they are not entitled to a tax free threshold.

- If Q8 wpe5.jpg (785 bytes) non-resident
1. Employee must still apply for Tax File Number or will be taxed at highest marginal rate of 47% + 1½ % Medicare Levy.
2. Employee must supply paperwork from ATO verifying no tax payable in Australia. eg. Agreement between UK & Australia
  • Tax free threshold
 If the employee is an Australian resident for taxation purposes $6,000 of their yearly income is not taxed. This is called the tax-free threshold. They may claim the tax-free threshold from one employer only. Non-residents cannot claim the tax-free threshold.
  • Family tax assistance
 This is tax assistance administered by the Australian Taxation Office. It increases your tax free threshold. This means that if you have dependant children and earn under the income limit, you will pay less tax. You can choose to have less tax taken out of your pay or to reduce your tax through your tax return at the end of the income year. Withholding declaration form to be submitted.
  • HELP
 Higher Education Loan Program (HELP) is a system which was introduced to supplement funding of the Australian education system. If claiming HELP the appropriate box must be ticked.

Note: HELP contributions are only applicable when gross fortnightly income reaches $1380.00.

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