457 Taxes?

[5vannemerwea]

Hi all

From the website Aussiemove.com I understand that at least some 457 visas are exluded from tax. Could it be that while on a 457 that I do not pay tax during that time?

Is it to good to be true or is it true? That would make a bit of a diffirence in my budget when I'm staring over there.

Thanks

Martin

[Nilo]

Don't have a clue!!!

We paid taxes but then again we also had our PR app in and got medicare etc so I don't mind paying taxes in AUstralia, at least you see what you paying for!!! Personally I thing Australian Tax is very reasonable and fair!!

[Mara]

Dreamworld, I won't believe for a moment that you do not pay taxes on a 457! All the people that have worked for our company on a 457 have been taxed, just like any other person in the country. There are however some items that you can claim which normal workers cannot, try and do a search, for LAFHA, I think that is correct, I may be wrong. With this you get allowances for accommodation and food, this is deducted from your income before your tax is calculated. Your employer would have to be knowleagable about this though, as I believe it has to be in your letter of appointment.

[ronfire]

Hi all

From the website Aussiemove.com I understand that at least some 457 visas are exluded from tax. Could it be that while on a 457 that I do not pay tax during that time?

Is it to good to be true or is it true? That would make a bit of a diffirence in my budget when I'm staring over there.

Thanks

Martin

I'm no expert on Aus tax, but from my research, I can fid no indication that any 457 visa holders will be exempt from tax. If you're on a 457 visa, you're employed and earn a salaried income. In fact, you'd be resident for tax purposes - like any Aus citizen or perm resident.

I wish it was true, but I'm afraid it probably isn't.

[Bob]

Hi all

From the website Aussiemove.com I understand that at least some 457 visas are exluded from tax. Could it be that while on a 457 that I do not pay tax during that time?

Is it to good to be true or is it true? That would make a bit of a diffirence in my budget when I'm staring over there.

Thanks

Martin

I have to agree with Mara.

I reckon the only way you'll avoid paying Australian income tax is if you are working down in the Australian Antarctic Territory.

That means either feeding the huskies or servicing the snowmobiles??

Otherwise the bloke you told you that heard it from someone who heard it from someone who heard it from someone who . . . . .

[Tracy]

You DEFINITELY pay tax on 457 - I wish it wasn't so!

But as has been said, your money goes to the right places to be used properly.

[Guest mrs mupersan]

On a 457 you are considered a resident for tax purposes. I can't remember where I found this - it may have been on the ATO website when I was looking up info on the tax reference number.

[Overtaker]

I seem to recall that on a 457 you actually pay more tax, as you would not be exempt from the first $6000 like the other residents, but I could be wrong.

[Almost Aussie]

On a 457 visa, you're taxed as an resident, so you'll be exempted from the first $6000. That's if you intend staying for more than 12 months and the majority of your assests are with you in Aus. All info on ATO website. The only "tax" you won't pay, is the medical tax. Your employer must pay for your medical aid without deducting it from your salary.

[Are we there Yet?]

I do know that if you do not have a TFN(tax file number) you will be taxed at a rate of 46.5%.You need to register with the ATO in order to obtain that number which will be given to your employer.

[5vannemerwea]

My thanks

I thought it sound to good to be true. We still srtuggle get rid of the SA sindrome of looking over your shoulder and do not trust anywone, specialy your government. I'll do my best to get rid of that attitude as soon as possible.

Thanks again everybody.

Martin

[Alibaba]

You definitely get taxed on a 457. In my husband's employment contract it is stated that he will get the "living away from home allowance", I think it is 1.5% of your salary (can't remember exactly), so you will get that little bit extra back on which you will not be taxed. It should be done before tax, so your employer would be responsible for organising that bit. Employers don't need to pay for medical, it will depend on the benefits your company provides you with. Our contract also clearly state that we are not allowed to make use of Medicare and have to take our private medical insurance.

[TYTAN]

You definately pay tax on a 457. Your tax rate starts off higher that Permanant Residents. You can explore "salary packaging" that allows you to pay for certain things from your pretax monies effectively reducing your taxable income.

http://www.ato.gov.au/individuals/content....ntent/12333.htm

Edited February 19, 2008 by †Y†AN

[vesuvius]

Hi all

From the website Aussiemove.com I understand that at least some 457 visas are exluded from tax. Could it be that while on a 457 that I do not pay tax during that time?

Is it to good to be true or is it true? That would make a bit of a diffirence in my budget when I'm staring over there.

Thanks

Martin

I read that the tax in WA on a 457 is 29%

V

[Alrae Goodall]

I read that the tax in WA on a 457 is 29%

V

Sounds very odd. Tax laws and tax rates are for the country and not for a particular state.

Am busy doing a tax course at the moment and would be interested to know how what the circumstances where for this to be said.

The rate of tax you pay is on a sliding scale and 457 visa holders (temp residents) pay tax at the same rate as permanent residents.

There might be a few differences (medicare levy), but the rate is the same.

Regards Alrae

[Navigator]

Employers don't need to pay for medical, it will depend on the benefits your company provides you with. Our contract also clearly state that we are not allowed to make use of Medicare and have to take our private medical insurance.

As far as I know employers have to pay for your medical on a 457. My employer does, and I'm quite sure they wouldn't if they don't have to as it is quite a few dollars a month.

If I recall correctly someone in the company mentioned to me that it is compulsory for the employer to provide medical care while you're on a 457.

[Bob]

Sounds very odd. Tax laws and tax rates are for the country and not for a particular state.

Am busy doing a tax course at the moment and would be interested to know how what the circumstances where for this to be said.

The rate of tax you pay is on a sliding scale and 457 visa holders (temp residents) pay tax at the same rate as permanent residents.

There might be a few differences (medicare levy), but the rate is the same.

Regards Alrae

Since 1943, as a "temporary" War time measure, the various States around Australia surrendered their powers to levy any income tax out of your pay packet ("primary" taxation) to the Commonwealth of Australia (the national government).

The Commonwealth of Australia, under the Australian Constitution, is still the only government allowed by law to tax your pay packet.

I live in South Australia.

If Western Australians are paying less income tax out of their pay packet, I'd like to know about it!

[SueB]

We are on 457 in WA. Trust me, I can tell you first hand : You do pay the tax. You have 28 days from arriving to get your TFN and if the bank (interest) and your employer (salary) don't have your TFN number they are required to withhold tax at the maximum rate. Their turnaround time for getting you a TFN after you apply is ........ you guessed it, 28 days. You only get the money back once your tax return has been processed, which depending on timing, can be more than a year.

You can only apply for a TFN once your are in Oz, so it should be on your list of things to do right after you arrive.

Edited March 29, 2008 by SueB