Before you can take backpacker jobs you must get a Tax File Number (TFN) from the Taxation Department
- without this number employers are not supposed to let you work. And if they do, then your pay should
be taxed at double the rate of workers with a TFN. And of course to apply for a refund when you are
finished working you need that number.Employers are required by law to deduct income tax from wages before payment to the employee. Australian residents with a TFN doing seasonal work are taxed at 13% while non-residents (including backpacking visitors doing backpacker jobs on working holidays) with a TFN will pay 29%. Anybody who doesn't provide a TFN will be taxed at the highest possible rate which is 47%.
At the beginning of each job backpacking workers should fill in a declaration form and at the end of the job they should receive a Statement of Earnings from the employer - this statement then forms part of the incometax return at the end of the year.
Everyone who works in Australia must lodge an income tax return at the end of the financial year (which is the 30th. of June) - the lodgement deadline is the 31st. of October or when you leave the country.
The taxpayer can either lodge their own return or else use an agent to prepare the paperwork. To do it yourself get a Tax Pack from the Tax Office, Post Office or newsagencies.
If you decide to use a tax agent they can arrange your return for a fee. If you leave the country before your return is processed they can send the refund cheque or they can deposit into your bank. To complete your tax return you must attach your group certificates, that is the statement of earnings that your employer will give you when you finish working for them.
Sometimes it may be possible to get a refund of some of the tax that has been deducted by employers. This is a consequence of lodging the tax return - and if there is a refund it will be made some time after you lodged your return - so it is important how the refund should be to be paid as you will probably have left the country by then.
In July 2000 a VAT style general goods and services tax (GST) was introduced as part of a major overhaul of the entire taxation system in the country. As a result some taxes have been abolished, others have increased and some have stayed the same.
The bottom line is that most items now attract a GST of about 10%. Prices including GST are supposed to be displayed on the goods, but nevertheless when making a purchase it is a good idea to check that this is in fact the case in order to avoid being suprised later.
For larger items it may be possible to claim back some GST. The refund will be paid on goods costing $300 or more including GST which were bought from the same store within 30 days before leaving Australia. Unlike duty free purchases, you may use the goods while in Australia and still clain a GST refund (but watch the 30 day limit).
The budget travel visitor can claim GST back by getting a tax-invoice from the store, and then when leaving Australia going to Tourist Refund Scheme (TRS) facilities located in international terminals. To claim back the GST travellers will need their passport, boarding pass, tax-invoices and the goods.
The Passenger Movement Charge (departure tax) is $A38 per person and should be pre-paid with your international airline ticket. Exemptions may apply to children under 12 years and also to 24 hour transit passengers