FAQ

1. Do I need to lodge a tax return?

Generally, if you are an Australian resident with income earned less than the threshold amount, it is not required to lodge a tax return. However, to avoid receiving a reminder or phone call from ATO, you should contact ATO to report that you do not need to lodge a tax return.

In most circumstances, you must lodge a tax return if any of the following apply:

  • Tax was deducted from any payments (such as wages) made to you during the financial year

  • You wish to claim tax deductions

  • You are an Australian resident and your taxable income was more than the tax-free threshold

  • You are a foreign resident and you earned more than $1 in Australia during the financial year

  • You are leaving Australia permanently or for more than one financial year

  • You have capital loss to carry forward to next year.

Unlike Australian residents, income tax rates and income types are treated differently for Foreign residents.

If you have enquiries regarding the above, please contact your accountant or simply email to info@tagpl.com.au for assistance.

2. Are you an Australian resident for tax purposes?

Generally, ATO considers you to be an Australian resident for tax purposes if you:

  • Have always lived in Australia or you have come to Australia and live here permanently

  • Have been in Australia continuously for six months or more, and for most of that time you worked in the one job and lived at the same place

  • Have been in Australia for more than six months within same financial year, unless your usual home is overseas and you do not intend to live in Australia

  • Go overseas temporarily and you do not set up a permanent home in another country, or

  • Are an overseas student who has come to Australia to study and are enrolled in a course that is more than six months long

ATO does not use the same rules as the Department of Home Affairs.

There are online tools from ATO, that may help you to decide whether or not you are an Australian resident for tax purposes, or simply contact us by email to info@tagpl.com.au for assistance

3. How long should you keep your records?

Generally, you must keep your written evidence for five years from the date you lodge your tax return.

However, there are other specific situations in which you should keep receipts longer than the standard period. If you

  • Have claimed a deduction for decline in value – keep records for the five years from the date of your last claim for decline in value

  • Acquire or dispose of an asset – keep records for the five years after it is certain that no capital gains tax (CGT) event can happen

  • Are in dispute with us – keep records for the later of either

    • Five years from the date you lodge your tax return

    • Five years from the date the dispute is resolved.

If you have any concerns, such as loss of receipts or document, please contact info@tagpl.com.au will discuss if any alternatives to handle this tax matter.

4. What is ABN? Do I need ABN to run a business in Australia?

The Australian business number ( ABN ) is a unique 11 digit identifier that is required by any entities that have business activities and interact with all levels of government.

5. How do I set up a business in Australia?

Registering your business:

When you start a business, you need to get an Australian business number (ABN) and a tax file number (TFN) if you don’t already have one.

It's good to get a secure online credential so you can use our online services for business reporting. You may also need to register for:

  • goods and services tax (GST)

  • pay as you go withholding (PAYG)

  • fringe benefits tax (FBT).

You can log into ATO website to register online. However, it is crucial to fully understand the business structure types and choose the one that suits your business as these registration numbers are a unique identifier to each taxpaying entity.   

Please contact info@tagpl.com.au for further assistance if you need any assistance of setting up business.

6. Do I need to set up a company to run a business?

There are four commonly used business structures in Australia:

Each structure has different responsibilities, tax liability and other obligations and costs as well. Please ensure that you understand each structure before you choose. You may change the structure along when business changes, however financial and opportunity costs involved in changes should be considered, such as compliance, stationery, and business interruption. Tax consequences and implications in most circumstances are irreversible.

Please do not hesitate to email to info@tagpl.com.au for further assistance, our friendly team listen your needs and explain what business structure may suit your need the most.

7. Do I need to register for GST?

You must register for GST:

  • When your business or enterprise has a GST turnover (gross income minus GST) of $75,000 or more;

  • When you start a new business and expect your turnover to reach the GST threshold (or more) in the first year of operation

  • If you're already in business and have reached the GST threshold

  • If your non-profit organisation has a GST turnover of $150,000 per year or more

  • When you provide taxi or limousine travel for passengers (including ride-sourcing) regardless of your GST turnover – this applies to both owner drivers and if you lease or rent a taxi

  • If you want to claim fuel tax credits for your business or enterprise.

  • GST legislation may change in the future, and there are circumstances which you may overlook, please visit ATO website for further details or simply contact us for assistance.   

8. Do I need to pay any tax on income earned overseas?

Refer to 2. Are you an Australian resident for tax purposes?

9. What is foreign income and should I report foreign income earned overseas?

The main types of foreign income Australian Residents earn, including

  • Foreign Pensions and annuities

  • Foreign employment income

  • Foreign investment income

  • Foreign business income

  • Capital gain on overseas assets

As an Australian resident, you are taxed on your worldwide income. If you have paid foreign tax in another country on foreign income you received, you may be entitled to Australian foreign income tax offset to reduce overall income tax expenses.

Please send an email to info@tagpl.com.au if you have any foreign income tax concerns.

10. Any tax on selling overseas assets?

If you are an Australian resident your capital gains on overseas assets are treated in the same way as on Australian property. If you make a capital gain that is taxable in Australia and you have paid foreign tax on it, you may be entitled to a foreign income tax offset.

Capital Gain tax is a complicated tax matters which you may require tax specialist to explain in details. Please simply contact us by email to info@tagpl.com.au for assistance