Part Year tax resident

[rosehill]

I'm a Tax Resident from 1 Jul to mid Sep and earned $8,100 during this period. The E-tax estimate shows tax payable for 2012/13 is a$2,600, which seems much more than my calculation. Please advise if the ATO calculation is correct.
Many thanks in advance.

 

[alexlee]

............

 

[rosehill]

Thank you for your replies. If there is no part-year tax resident concept, why the e-tax asked the date I was a non-resident and shows a part year tax threshold of $14,648?

 

[alexlee]

My mistake, it seems. Though if you have a 14,000 tax free threshold, why would there be any tax payable on income of 8k?

 

[speary]

I would suggest you consult a tax agent on this one. There are alot of things to consider regarding residency and its usually not as simple as moving overseas on a certain date. There are also other issues to consider like deemed disposal of capital assets.

Best to get some specific advice.

 

[GaryT]

You tax free threshold is $13,464 + ($4,735x3/12) = $14,648.

If your income is $8,100 then you should have no tax to pay.

 

[rosehill]

Thank you so much. It makes sense now. Think the estimated tax payable shown is before the part-year tax free threshold then.

 

[Rob G.]

Did you set the dates of residency correctly in eTax ?

A non-resident earning Australian sourced income of $8,100 would not have a tax-free threshold:

$8,100 x 32.5% (non-resident rate is without Medicare Levy) = $2,632

Cheers,

Rob

 

[coastymike]

Probably in relation to the question are you a tax resident. If you are a part year resident you say yes rather than no which never made sense to me. But anyway ato says that how you do it and then put the dates you were a resident. Maybe you put no and it doesnt take into account the part year. Tax software does the same.

 

[rosehill]

Probably in relation to the question are you a tax resident. If you are a part year resident you say yes rather than no which never made sense to me. But anyway ato says that how you do it and then put the dates you were a resident. Maybe you put no and it doesnt take into account the part year. Tax software does the same.

Have put in Yes and date in the question - that's why the e-Tax calculated a part-year tax free threshold amount in the progressive summary page. However, the tax estimates page don't show this threshold amount and work out tax of $2,600 due on $8,100 income.