Finance - Tax Information

The following information is provided to give students some very basic information   about some of the tax issues that may be relevant to them while studying. All students should seek definitive answers to any questions related to taxation by going to the ATO website, calling them on 132861, referring to the relevant Tax Pack or from a “Tax Helper” or a registered taxation agent. Financial Advisors on Campus are not registered taxation agents and can only give very basic information.

Tax File Numbers
Anyone working and/or lodging a tax return in Australia must have tax file number. Forms are available from a newsagency or an ATO office. International students can also obtain a form from the Swinburne International Office.

Taxable Income
Taxable income is assessable income from all sources less any allowable deductions that you may have. Taxable income is the amount of income on which you have to pay tax.

Allowable Deductions
Deductions are allowed for expenses incurred in earning your income.
Refer to the ATO Tax Pack for details of allowable deductions. Some deductions that may relate to part-time employment are:

• Uniforms and laundering
• Work tools and equipment
• Protective clothing
• Telephone and internet costs
• Etc

At present, you can only claim educational expenses if your study is directly related to your current employment. Check the Tax Pack for specific information.

Tax Free Threshold
The tax free threshold is an amount, below which you do not have the pay tax. In 2009 this amount is $6,000 (reduced if you work for less than the full financial year). If you have earned less than $6,000 and paid tax, you will be due for a refund from the ATO.

Calculating Assessable Income
Add up all sources of income eg. Youth Allowance/Austudy, wages, bank interest etc. You should not guess this amount but rather have records such as group certificates, bank statements and details from Centrelink. If you have trouble obtaining a group certificate from an employer, contact the ATO and they can assist. Money from family is not counted unless it is paid from a family trust or you have been employed by a family member.

Tax Returns
Briefly if your taxable income is over $6,000 in the financial year (July 1 to June 30) or you paid tax during the financial year, you should lodge a tax return. If you did not have any income or tax taken out, then you may not need to lodge a tax return. Some people receiving payments such as Youth Allowance, Austudy or Newsart Allowance and having no other income may not need to lodge a tax return, even if their income was over $6,000.

International Students and Tax
If you are studying in Australia for more than 6 months you are considered a resident for tax purposes, which means you can claim the tax free threshold.

Things to Remember

• Keep all documents and receipts to do with your employment or income in a manila folder so that you are ready to lodge your tax return at the end of the financial year. Also keep past Tax Assessment Notices and copies of your tax returns.
• Seek advice if you are unsure of your obligations or what to do.
• Lodge your tax return by the 31st of October (unless you are doing it through registered tax agent).
• It is a good idea to lodge a Non-Lodgement Advice Form if you are not required to lodge a tax return. That way in future years the ATO has a full history of your tax matters.
• The Hawthorn Campus usually runs “Tax Help” on campus each year from July until October. This scheme provides assistance to students with filling in their basic tax returns.