On Taxes

Here’s a downside to moving abroad that one doesn’t give much thought to during the excitement of a new city and a new job and a new climate – it’s called Taxes.  You do them in April and think phew, glad that’s over.  And then you move to Australia and learn that the tax year ends June 30th.  You think this doesn’t matter so much until you get a notification from your place of employment that you have this thing called a “PAYG Summary” available to you now.  And you think, huh, what’s that?  And when you look at it you see that it looks suspiciously like something one would file with the government.   Something that starts with a W followed by a number.  So you go online and find out that yes, even though you’ve only been in-country for a few months and you still call the States your home, you ARE considered a RESIDENT of Australia for tax purposes.  Which means that yes, you must file taxes AGAIN.  Before Halloween.  A razor in the apple if I’ve ever heard of one.

So then you go online and see that Hurray, there is this thing called “eTax” that allows you to file online.  Only you first must be confirmed to be who you say you are.  But here’s the rub – you’ve been in the country long enough to be a RESIDENT for tax purposes but not long enough for there to be any “shared secret information” (I am not making this term up) available online to confirm that you are who you say you are.  So you must submit via paper, which really, if we’re perfectly honest here, comes as no surprise here in Oz.

The forms themselves?  Pretty much as complicated as they are in the States.  There were a few surprises, though.  My favorite:  Section D11 asked “Are you entitled to a deduction for investing in the Australian film industry?”  Given the exorbitant cost of movie tickets here – $17.50 a pop – I was thinking why Yes, I have invested in the film industry by goodness, and I want my deduction for it.  Apparently, though, I’m not the first to think this way, for a few paragraphs later, Section D11 went on to state “You cannot claim the cost of cinema tickets”.  Alright, but can I at least deduct the $6 bag of M&M’s?

2 Comments

  1. Point well taken. Let’s note that it is cheaper, however, to enter the USA than the movie theater at Bondi Junction!

  2. This is only akin with the following announcements for visitors to the “land of the free” the USA – Entry fee for Aussie travellers to US. They want to increase tourism to the USA, so the best way to do this is to impose a tax on them to visit! – now what sort of incentive is that I ask??

    We do consider you as residents – long stay temporary residents-just like your visa says!

    Who pays full price for their movie tickets? shall I encourage you to get the staff discount tickets…

    September 8, 2010 – 9:42AM
    Travellers from countries which do not require visas for the United States – such as Australia, New Zealand, Britain, France and South Korea – must pay a $US14 ($A15) tax starting today.
    Travellers from Visa Waiver Program (VWP) countries must “pay operational and travel promotion fees” when applying for an Electronic System for Travel Authorisation (ESTA), the US Customs and Border Protection said on its website.
    “The total fee for a new or renewed ESTA will be 14 dollars,” the website said. The breakdown includes $US10 tax and $US4 to recover the cost of the ESTA system.
    The tax will be used to fund a campaign to promote tourism to the US.
    This is the first time the US has resorted to a government-sponsored international sales pitch similar to those used by Australia and other countries to win a bigger share of global tourism.
    The campaign is expected to increase visitor numbers by an estimated 1.6 million travellers, while restoring a more relaxed and welcoming image of America in a security-conscious era.
    There were 2.4 million fewer international tourists visiting the US last year than in 2000. Its inability to keep pace with expanding global long-haul tourism is estimated to have cost it $US500 billion in lost revenues over the past decade.

Comments are closed.