Banking, Money and Taxes in Australia
Australia has built one of the strongest economies in the world on the back of three decades of dedicated structural and policy reform. While the nation has not been immune to the recent economic crisis, Australia remains a major regional financial hub with a sophisticated banking system.
Expats wanting to open a bank account in Australia should always investigate all available options, particularly as interest rates can vary between one bank and another. Australia’s major banks are: the Commonwealth Bank of Australia; ANZ Bank; Westpac; and National Australia Bank.
As banks are always keen to attract new customers, most have a wide service offering, and are keen to provide assistance to expatriates. Opening a bank account in Australia is a fairly straightforward procedure requiring a certified passport copy, proof of residential address and a bank statement from the previous 3 months.
Expatriates will find that tax rates are high in Australia; annual income above $60,000 is taxed at a rate of 47 percent. Residents are taxed on their worldwide income, including salary and dividends, although there are special rules applicable to expatriates. Rates in the country are also notorious for fluctuation, thus it is strongly advised to consult with an Australian accountant or tax lawyer.
The Australian tax year ends on 30 June, and tax returns should be lodged by 31 October. Expatriates earning an income for more than 183 days in any tax year will be considered a formal resident of Australia for tax purposes, with the exception of those holding working holiday visas.
No one can be registered as a taxpayer without a Tax File Number (TFN), which is the unique number issued by the Australian Tax Office.
Banking in Australia
Expats wanting to open a bank account in Australia should always investigate all available options, particularly as interest rates can vary between one bank and another. Australia’s major banks are: the Commonwealth Bank of Australia; ANZ Bank; Westpac; and National Australia Bank.As banks are always keen to attract new customers, most have a wide service offering, and are keen to provide assistance to expatriates. Opening a bank account in Australia is a fairly straightforward procedure requiring a certified passport copy, proof of residential address and a bank statement from the previous 3 months.
Taxes in Australia
Expatriates will find that tax rates are high in Australia; annual income above $60,000 is taxed at a rate of 47 percent. Residents are taxed on their worldwide income, including salary and dividends, although there are special rules applicable to expatriates. Rates in the country are also notorious for fluctuation, thus it is strongly advised to consult with an Australian accountant or tax lawyer.
The Australian tax year ends on 30 June, and tax returns should be lodged by 31 October. Expatriates earning an income for more than 183 days in any tax year will be considered a formal resident of Australia for tax purposes, with the exception of those holding working holiday visas.
No one can be registered as a taxpayer without a Tax File Number (TFN), which is the unique number issued by the Australian Tax Office.
