Just came across a tax issue I hadnt seen before. Inbound taxpayer coming here on 457 Visa for 4 years or maybe longer. OK they are a tax resident using the ATO's residency tool. They arrived here in early April...So how much of the tax free threshold do they get ?? Back for years the $6k threshold used to be a pro-rata that worked and gave $500 a month.
Anyway it appears we now have a cushioned pro-rata. The tax free of $18,200 is split into two elements. All taxpayers (even arriving on 29 June!!) get $13,464 tax free. Then the remaining $4736 is pro-rata according to months basis and further increases the tax free amount....ie Arrive April then you get 3/12th x $4736 + $13,464 = $14,648...
This means a huge tax free amount quite disproportionate to the full year earnings by a resident here all year. And thus a improved refund. Same apportionment applies for departing resident taxpayers too.
Correct me if I'm wrong but this seems to be the ONLY generous tax benefit Wayne Swan gave taxpayers in the past few years. Everything else was just take take take. Have to say I was surprised. It effectively means the smallest tax free threshold is $13,464.
http://www.ato.gov.au/Individuals/I...ax-free-threshold-for-newcomers-to-Australia/
Anyway it appears we now have a cushioned pro-rata. The tax free of $18,200 is split into two elements. All taxpayers (even arriving on 29 June!!) get $13,464 tax free. Then the remaining $4736 is pro-rata according to months basis and further increases the tax free amount....ie Arrive April then you get 3/12th x $4736 + $13,464 = $14,648...
This means a huge tax free amount quite disproportionate to the full year earnings by a resident here all year. And thus a improved refund. Same apportionment applies for departing resident taxpayers too.
Correct me if I'm wrong but this seems to be the ONLY generous tax benefit Wayne Swan gave taxpayers in the past few years. Everything else was just take take take. Have to say I was surprised. It effectively means the smallest tax free threshold is $13,464.
http://www.ato.gov.au/Individuals/I...ax-free-threshold-for-newcomers-to-Australia/