Australian Tax & Super – Set yourself up to work in Australia
Pay and Tax
Each job has different pay rates depending on factors such as location, type of work, working conditions, experience required and if accommodation and/or food is included. You can generally expect to earn between $21 to $28 an hour.
It is normal to be paid all your hard earned cash directly into your Australian bank account. If you like Go Workabout can help you organise this before you arrive. This will also allow you to transfer money to Australia before you leave home. See Services for more information.
Unfortunately, you will have tax taken out of your pay and given to the government. The rate of tax that is taken out of your pay can range from 0 to 48%, but is normally between 10 and 28%, depending on many factors.
You might be able to get some or all of this tax back when you do your Tax Return (see below).
Tax File Number
To work in Australia you will need a Tax File Number (TFN) so the Government can keep track of how much tax you’re paying. Without one of these you will be paying the highest tax rate. Go Workabout can arrange this for you now and have it emailed to you soon after you arrive.
When you pay tax in Australia, you are required to do a Tax Return. At the end of the year or when you finish working, you declare to the Australian Tax Office how much you earned, how much tax you paid and a heap of other things.
You can do your Tax Return yourself, or have professionals do it on your behalf. In order to do a Tax Return,, you will usually need a ‘payment summary’ or ‘group certificate’ from every employer you have worked for during the year, which summarises the amount you earned and the tax you paid.
In Australia we have ‘superannuation’ (called pension in some other countries). This is where employers must pay an additional 9.5% of what you earn into a fund for retirement.
You can’t have this money until you are old enough to retire or under other special circumstances. Luckily, as a foreigner, when you leave Australia you can get all this money back. You can either pay a company to do this for you (there are many around) or you can do it yourself through the tax office.