What are taxes ❓
🧡 Taxes are obligatory contributions levied by a government entity on individuals or corporations. Taxation funds government activities such as public works and services such as roads and schools, as well as programs such as Social Security and Medicare.
Why do we have to pay taxes❓
🧡 Australia is known as one of the top livable cities in the world. The citizens have to regularly pay taxes to the government to provide facilities and improve services such as health care, education, transportation and welfare.
What is Tax File Number (TFN)❓
🧡 A Tax File Number or TFN is a personal reference number that anyone can get a TFN for free at an Australian Taxation Office and should have a TFN before starting work in Australia.
Who has to pay taxes❓
🧡- You are taxed on your income during the financial year (from July 1st to June 30th).
– Your taxable income (including certain welfare payments from the Australian Government) in excess of the threshold for Australian residents.
– You are a foreign resident and earned $1 or more in Australia during the financial year.
– You will leave Australia permanently or for more than one financial year.
How to pay taxes❓
🧡 Normally, before starting work in Australia, employers require employees to fill out a TFN to identify themselves, and the employer will automatically withhold taxes from the government each time payroll is made. The pay slip will state the taxes you paid. 💰 The amount of tax paid depends on
👉 Income earned
👉 The number of jobs you are currently hired
👉 Having a Tax File Number (Without a TFN, you’ll pay more taxes than usual.)
👉 Tax residency status
Now you know that International students in Australia have to pay taxes and how to manage your annual taxes. For more information you can go through the website below.