Taxation Matters for Temporary Resident in Australia
There are special taxation related matters temporary resident in Australia, temporary resident is a person who:
Generally, temporary residents are:
For the taxation related matters, person who are not receiving medicare benefit from Australian government would be eligible. Temporary residents generally are taxed for income earned in Australia only, as the result, following taxation related subjects are important to temporary resident. By claiming following entitlements, temporary residents could get extra refund of hundreds, even thousands dollars from taxation office.
Claiming Medicare Levy Exemption
Temporary resident generally does not receive medicare support from Australian government's public hospital system, however the tax withholding system takes 1.5% of taxpayer's taxable income as medicare levy, and high income earners even pay more on medicare levy surcharge, which is extra 1% now (up to extra 1.5% for top tier earners in 2012-2013 financial year).
To claim medicare levy exemption, any tax payer who does NOT receive medicare benefit should apply for medicare levy exemption certificate to get the 1.5% medicare levy (and levy surcharge) back through annual tax return as extra cash refund to your bank account.
However, some countries, such as United Kingdom, Sweden, Finland, Norway and the Netherlands, have Reciprocal Health Care Agreement (RHCA) with Australia, temporary residents from these countries are receiving medicare benefit and generally can not claim medicare levy exemption.
Medicare levy exemption application form can be downloaded here.
Consolidating Superannuation Accounts
All employees are receiving superannuation guarantee payment, 9% of your salary (which starts to increase to 9.25% from 1 July 2013 to 12% by 2019), from their employer, which is paid into superannuation fund, when people change jobs, most people just have another superannuation account even if employer offers choice of super. Over years, one person might have several super fund accounts sitting over untouched and are being eaten up by the management fees. As per ATO, there are about $19 billion unclaimed superannuation at the end of 2011 financial year.
For employee, please make sure to choose your own superannuation account on start of a new employment and consolidate all of your superannuation account into one account.
Superseeker: ATO offers free online tool to track your superannuation and arrange to consolidate account quick and easy.
You will need following details to access superseeker:
Claiming Departing Australia Superannuation Payment
Everyone working in Australia receives 9% superannuation guarantee payment from employer into one superannuation fund, temporary resident can claim their superannuation balance back after they leave Australia. Most people get at least a few thousands super payment back.
Australian Taxation Office offers one free service to claim Departing Australia Superannuation Payment online.
You will need following details to access and apply:
Please also note the following information:
Departing Australia superannuation payment application form can also be downloaded here.
Should you have any further enquiry, please feel free to contact us at [email protected] and we will clarify for you.
- holds a temporary visa granted under the Migration Act 1958.
- is not an Australian resident within the meaning of Social Security Act 1991, and
- whose spouse (if applicable) is not an Australian resident within the meaning of Social Security Act 1991.
Generally, temporary residents are:
- Overseas students
- Backpackers
- Travellers
- Working visa holder
For the taxation related matters, person who are not receiving medicare benefit from Australian government would be eligible. Temporary residents generally are taxed for income earned in Australia only, as the result, following taxation related subjects are important to temporary resident. By claiming following entitlements, temporary residents could get extra refund of hundreds, even thousands dollars from taxation office.
- Claiming medicare levy exemption
- Consolidating superannuation accounts if you have multi accounts
- Claiming Departing Australia superannuation payment
Claiming Medicare Levy Exemption
Temporary resident generally does not receive medicare support from Australian government's public hospital system, however the tax withholding system takes 1.5% of taxpayer's taxable income as medicare levy, and high income earners even pay more on medicare levy surcharge, which is extra 1% now (up to extra 1.5% for top tier earners in 2012-2013 financial year).
To claim medicare levy exemption, any tax payer who does NOT receive medicare benefit should apply for medicare levy exemption certificate to get the 1.5% medicare levy (and levy surcharge) back through annual tax return as extra cash refund to your bank account.
However, some countries, such as United Kingdom, Sweden, Finland, Norway and the Netherlands, have Reciprocal Health Care Agreement (RHCA) with Australia, temporary residents from these countries are receiving medicare benefit and generally can not claim medicare levy exemption.
Medicare levy exemption application form can be downloaded here.
Consolidating Superannuation Accounts
All employees are receiving superannuation guarantee payment, 9% of your salary (which starts to increase to 9.25% from 1 July 2013 to 12% by 2019), from their employer, which is paid into superannuation fund, when people change jobs, most people just have another superannuation account even if employer offers choice of super. Over years, one person might have several super fund accounts sitting over untouched and are being eaten up by the management fees. As per ATO, there are about $19 billion unclaimed superannuation at the end of 2011 financial year.
For employee, please make sure to choose your own superannuation account on start of a new employment and consolidate all of your superannuation account into one account.
Superseeker: ATO offers free online tool to track your superannuation and arrange to consolidate account quick and easy.
You will need following details to access superseeker:
- Tax file number (TFN)
- Family and given name
- Date of birth
Claiming Departing Australia Superannuation Payment
Everyone working in Australia receives 9% superannuation guarantee payment from employer into one superannuation fund, temporary resident can claim their superannuation balance back after they leave Australia. Most people get at least a few thousands super payment back.
Australian Taxation Office offers one free service to claim Departing Australia Superannuation Payment online.
You will need following details to access and apply:
- Tax file number (TFN)
- Family and given name
- Date of birth
- Passport number
- Superannuation fund details - fund name and your account number (please keep record of your annual super statement, which has all the details needed.)
Please also note the following information:
- New Zealand citizens are not eligible for this payment, as they have the option to retire in Australia.
- Super payment will be paid by cheque and mailed to you, it is not necessary to maintain one Australian bank account to receive this payment.
- In general, a withholding tax of 35% will be taken out of your super balance by Australia government before it is paid to you.
Departing Australia superannuation payment application form can also be downloaded here.
Should you have any further enquiry, please feel free to contact us at [email protected] and we will clarify for you.