# How tax is returned in Australia



## rujutaraval (Aug 24, 2013)

Hi,

I'm planning to immigrate to Australia and would like to know how the Tax is returned in Australia. Like other countries, do they have system like you can claim for tax return after retirement?


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## vineet (Sep 11, 2013)

I also have similar query ? Right now I am in South Korea from last 1.5 years and planing to move to Australia as PR.
Even though Korea is very good country in everything (tax, people, salary, goods prices, etc.), the problem you face is language. People who understand English are very less. That is the only reason I want to move to Australia. (My wife is in full opposition of it, when she come to know that I have to search job after going there. She wants me to have job offer before going there which is near to impossible.)


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## Bevdeforges (Nov 16, 2007)

I think we're dealing with a language problem here. The OP asked about "how tax is returned" to you in Australia and I know I'm not sure what s/he means.

Because mention was made of "returning taxes" after retirement, I suspect we're talking about a retirement plan or system. Normally, you pay into the retirement system or contribute to a plan while you're working, and after retirement, you are paid out benefits according to the rules of the plan. It's not technically a return of your taxes, but rather a function of your qualifying for a pension based on how long and how much you paid in over the years that you worked.
Cheers,
Bev


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## rujutaraval (Aug 24, 2013)

Bevdeforges said:


> I think we're dealing with a language problem here. The OP asked about "how tax is returned" to you in Australia and I know I'm not sure what s/he means.
> 
> Because mention was made of "returning taxes" after retirement, I suspect we're talking about a retirement plan or system. Normally, you pay into the retirement system or contribute to a plan while you're working, and after retirement, you are paid out benefits according to the rules of the plan. It's not technically a return of your taxes, but rather a function of your qualifying for a pension based on how long and how much you paid in over the years that you worked.
> Cheers,
> Bev


Ok,so what happens to the taxes we pay. Because in Aus,its a huge amountaround 30-40%. Generally in other foreign countries they return as retirement plan.


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## Bevdeforges (Nov 16, 2007)

I'm not familiar with the Australian government fiscal policy, but in most countries, the taxes you pay goes toward the costs of running the country. If you are working in Australia and paying into the social insurances scheme, there is generally a retirement plan - though in some countries, this is voluntary so if you don't pay in, you don't get anything back.
Cheers,
Bev


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## rujutaraval (Aug 24, 2013)

Ok,

How about claiming your tax when returning from Aus? Like after working 10-15 yrs,if I come back to my home country, will I be able to get those tax amount?


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## Nononymous (Jul 12, 2011)

Typically that is not how tax works. The tax collected from you pays for all the services you used, directly or indirectly, during your time in the country. You do not get that money back when you leave.

Retirement or pension fund contributions are another matter. I have no idea how it works in Australia, but presumably if you contributed enough you'd be entitled to some amount of money, either lump-sum or pension, at some point in the future.


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## BBCWatcher (Dec 28, 2012)

Australia's system of compulsory retirement savings is called "superannuation." The tax rate is a bit over 9% and in the process of increasing to 12% over the coming years. Those funds are placed into an individual, restricted, tax-advantaged account intended for retirement. There are some options to contribute more to the account.

Temporary foreign workers in Australia can apply for superannuation refunds (early withdrawals), or they can stay in the scheme. Both options should be considered. For more information on refunds please visit this site.


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## brettaevans (Mar 23, 2012)

BBCWatcher is spot on. When it comes to pension savings as part of your employment package your employer will contribute a percentage (just recently increased to 9.25%) of your income to your nominated superannuation fund.

As far as tax is concerned the tax brackets are nil tax up to $18,200, 19% on any amount greater than $18,201 up to $37k, 32.5% on any amount greater than $37k up to $80k, 37% on any amount greater than $80k up to $180k and then 45% on any amounts greater than $180k.

Whether you are on a temporary visa, PR visa, 457 etc all taxes are collected by the respective governments with no recourse to reclaim them.

Hope this helps


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## expatian (Oct 3, 2013)

You can see the tax brackets and calculate your tax using this tax calculator


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## vediaj (Sep 23, 2009)

expatian said:


> You can see the tax brackets and calculate your tax using this tax calculator


Is *employee *superannuation contribution compulsory in addition to employer contribution or optional?


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## expatian (Oct 3, 2013)

vediaj said:


> Is *employee *superannuation contribution compulsory in addition to employer contribution or optional?


Employee contribution is optional. Only the employer contributions are mandatory.


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## brettaevans (Mar 23, 2012)

The only catch with this maybe if you are employed as a contractor where you have to look after your own super contributions.


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