Working in Australia - Tax Information

Tax and Tax File Number

You will need a Tax File Number (TFN) to work in Australia. This allows the government to keep track of how much tax you pay. You can start work without one, so long as you then obtain your TFN within 28 days. Without a TFN, you will be paying the highest tax rate.

Employers will deduct tax from your pay packet. You will be taxed differently to residents of Australia and can expect to pay up to 29% tax. But, you may be able to claim some of this back when you do your tax return.

Obtaining a TFN isn’t hard. If you are in Oz, go to the nearest Australian Taxation Office (ATO) (they are in most major cities), fill in forms and provide ID such as your passport. Or, you can apply for one online before you leave.

Apply for a Tax file number online.

Tax Returns/Rebates

The Australian financial year ends on 30 June. You should complete a Tax return after this as you can usually get some of the tax you paid refunded. Once you hold a valid Working Holiday visa and have an Australian address, you can apply for a Tax file number at the Australian Taxation offices website, allowing you to submit a Tax Return. You may want to employ an accountant to submit your return as the Australian Tax system is quite complicated. This costs around £60, but could result in a much greater tax rebate.

Superannuation

Employers must pay an additional 9% of what you earn into a pension fund. This 9% is on top of what the employer says you will be paid. Residents can’t access this money until they retire, but as a foreigner you can get this money back when you leave Australia.

Working in Australia - finding a job