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New to Australia and doing a tax return? You NEED to read this

Getting your tax returns done in another country can be quite hard.  People who migrate to Australia have extra things to think about when they are filling in their tax return forms or seeing a tax agent.

1. If you do not have a medicare card – it is possible you might not have to pay the medicare surcharge fees in the tax return.

  This can be a large amount of money (if you have a taxable income over $50,000 it might be  an extra $2000 added to your tax refund).  In order to find out if you are eligible for this tax break you need to apply for a Medicare Entitlement Statement.  The link for that application form is here.   You need to fill in this form, post it off and wait until the Government comes back with a letter for you.  That letter will need to be used on your tax return so if you are using a tax agent you will need to give this to them.  Note that it can take a few weeks for the government to write back to you.  This information is entered in the medicare section M1 of the tax return.

2. You need to ensure you know what visa’s you have. 

Depending on the type of visa you have, you can be taxed at a different rate of tax.  For example a 417 or 462 working visa holders need to enter their income in the Adjustment credits A5.

3. You may need to report income that you have earned in another country. 

This is particularly when you are considered a resident of Australia for taxation purposes.  If you are unsure about where you fall for this part – this is a link to a calculator that helps you work it out

 

If you find the above applies to you – talking to a qualified tax agent who has experience in Medicare Entitlements would be a very worthwhile investment when doing your tax return this year!