Any Yankees down under? I need advice on paying taxes in the U.S. if I live in Australia (and my employer is an Australian firm). Do they get you coming and going?
2007-03-13 13:42:18 · 3 answers · asked by sci55 5 in Travel ➔ Australia ➔ Other - Australia
if you have been outside the U.s for more than six months
you dont have to pay tax on any money earned out side the states, also if you are paying income tax in australia you DONT have to pay taxes on that income to the irs in the states as you have been taxed on that money already by the australian government.
hope this helps
2007-03-13 14:39:48 · answer #1 · answered by wassie 3 · 1⤊ 0⤋
I think Shannon is right.
A rough guide to Australian tax
Income tax for wage and salary earners in Australia is removed from your pay before you get it, but 45% would only be paid by really high income earners. The median income here is somewhat less than AU$65,000 per year, and on that the income tax is about AU$17,000. That is all round figures, you will understand.
Some of this may be returned after you account for your earnings every year in a tax return, depending on your expenditure on medical, dental, professional. educational etc things.
The other tax is Goods and Services at 10% on all retail sales. This is included in all prices, so if something is priced at $10, that includes tax. This is on all things except fresh uncooked food.
You will pay no other taxes unless you buy or sell houses, land, apartments, cars etc. These are mostly state taxes and vary a little from one state or territory to another.
If you own land, you will pay land tax or rates every year to the local city or shire council. Typically this will be a few to several hundred dollars, much more in business districts. This does not usually include water supply or sewerage services which are charged separately.
When you rent a house or flat (apartment) the landlord pays this, but you will pay for your own electricity and gas. It's possible that you may have to pay for your own water in some places rather than have it included in the rent.
Virtually all residential areas of Australia are covered by shire or city councils.
2007-03-14 07:41:41 · answer #2 · answered by Anonymous · 1⤊ 0⤋
You can consult an international tax attorney in Australia, I believe that is correct that you pay income tax in Australia... unfortunately I think it is about 45%, potentially with some coming back to you when you leave.
2007-03-13 22:55:20 · answer #3 · answered by coolmommy 2 · 1⤊ 0⤋