GM Tax

Advisory Services - Business - Doing Business in Australia

There are a number of issues which should be considered before you send an individual to work in Australia.  Among these are:
  • Right to work
  • Employer obligations
  • Australian taxation
  • Australian superannuation
  • Creating a permanent establishment

The ATO will seek to collect any tax that may be due under the PAYG system.

An overseas employer sending an employee to Australia will have an obligation to operate a local payroll and deduct tax from an employee’s earnings and pay to the ATO.

As an employer you will also have superannuation obligations based on a % of an employees earnings  that will be required to be paid to a superannuation fund of their choosing payable quarterly via the ATO superannuation clearing house.

The individual would need to register with the ATO upon arrival to Australia.

As an Australian tax resident* everyone has to lodge an Australian Tax Return with the Australian Taxation Office (ATO) to report your worldwide income regardless of whether this income is remitted to Australia.

The Australian tax year runs from 1st July to 30th June.

You will need to apply for a tax file number in order to lodge an Australian Tax Return.

If your income is below the tax free threshold ($18,200 for 2020/2021) you are still required to report your income to the ATO however, you may not need to lodge a tax return.  You can report your income by lodging a CU non lodgment form to the ATO advising them that your income is below the threshold.

*Must be a permanent resident visa holder or in a defacto relationship with someone with PR or an Australian Citizen. 

You can apply via the ATO website.

The filing deadline will vary depending of whether you are lodging the tax return yourself of via a registered tax agent:

  • Lodging yourself the filing deadline is 31 October.
  • Lodging via a tax agent the filing deadline is May the following year, if all your prior year tax returns have been lodged on time.

We at GM Tax provide fixed fee quotes for advisory work and tax returns.

If you are looking to do business in Australia or have recently done business with Australia – and would like a fixed fee proposal from a firm of Australian tax advisors that understands the issues affecting expats living and doing business overseas including aspects covering employees please complete our online enquiry via our contact us button or by calling a GM Tax office closest to you.

GM Tax also offers the following services:

  • Tax planning advice and guidance with regards to your residency status and your domicile status in the context of Inheritance Tax (IHT) planning.
  • Preparation of tax returns, with all returns electronically lodged possible.
  • Advice on the tax position where a property is being let while a taxpayer is living overseas.
  • Assisting departing temporary residents with the recovery of superannuation monies under Australia’s DASP arrangements
  • Assistance to ensure that income is correctly taxed and not taxed twice, or double taxed.
  • This last point is particularly relevant to those who have income or capital gains which may also be subject to tax in the country in which the taxpayer is now resident.