Individuals

If you’re an Australian resident, you can apply for a tax file number (TFN) in the following ways, depending on your circumstances. It can take up to 28 days to receive your TFN.

Apply at Australia Post

You can apply for a TFN at a participating Australia Post retail outlet if you’re an Australian resident and able to attend an interview. There is no fee for lodging your TFN application.

If you’re an Australian resident, the easiest way to apply for a TFN is to:

1. Complete the application form from the ATO link. (Link- Complete the online form)

1. Print the summary, which will include your application reference number, and take it to your Australia Post interview.
2. Attend an interview at a participating Australia Post outlet within 30 days of completing your online form. You’ll need to take your printed summary and proof of identity documents to the interview. You’ll need to sign your application at Australia Post when you complete your interview.

Apply at a Services Australia centre

If you’re a Services Australia customer, you can apply at Australia Post for a TFN if you are an Australian resident and then attend an interview.

If you’re unable to use the Australia Post service and you are a Services Australia customer, you can apply in person at a Services Australia centre by completing a paper Tax file number – application or enquiry for individuals (NAT 1432) form.

Apply by post

If you can’t attend an interview at a participating Australia Post retail outlet or you’re not a Services Australia customer, you’ll need to complete a paper Tax file number – application or enquiry for individuals (NAT 1432) form.

You can get a copy of this form by either:

• Ordering online or
• By phoning 1300 720 092 

Send your completed TFN application and certified copies of your identity documents to the address listed on the form.

There are 4 Tests of Residence and any one needs to be met to determine whether you are an Australian resident for Tax purpose.

1. Resides Test:

To dwell permanently or for a considerable time in Australia. Some factors that may help you are:

• Time Spent in Australia
• Frequency, regularity and duration of visits
• Purpose of visits
• Maintenance and location of assets
• Family, social and business ties
• Intention and purpose

2. Domicile Test:

You’re an Australian resident if your domicile (broadly, the place that is your permanent home) is in Australia, unless we are satisfied that your permanent place of abode is outside Australia.

A domicile is a place that is considered to be your permanent home by law. For example, it may be a domicile by origin (where you were born) or by choice (where you have changed your home with the intent of making it permanent).

A permanent place of abode should have a degree of permanence and can be contrasted with a temporary or transitory place of abode.

3. 183 Day Test:

This test only applies to individuals arriving in Australia. An individual’s residence is Australia if physically present for more than half the income year unless:

• The individuals usual place of abode is outside Australia
• The individual does not intend to take up residence in Australia

4. Superannuation Test:

Only applies to members of super funds for Commonwealth Government employees:

• Diplomats in a foreign currency
• Foreign ministers

Employers are required to withhold tax from payments they make to you and send the withheld tax component to the ATO regularly. When you are required to lodge your tax return at the end of the financial year, your tax withheld balance is credited from your tax payable. If your tax liability balance is greater than the tax withheld, then you will have to pay additional tax out of your pocket to meet your income tax liability, however if your tax liability balance is less than the tax withheld by your employer, then you will be subject to a tax refund.

If you are an Australian resident for tax purposes, the first $18,200 is not taxed. Now suppose you have two jobs and in your first job your yearly income is $20,500 and in your second job it is $12,000 for the 2019/2020 period. Your combined income in this situation is $32,500, and even though the income from your second job falls within the tax free threshold, the combined yearly income surpasses that threshold. In this event, you are generally only able to claim the tax free threshold from the payer who usually pays the highest salary or wage. For simplicity purpose lets assume there are no deductions so that your Taxable income= Combined income earned from both these jobs. Because the first $18,200 of the $32,500 is tax free, then you will be required to pay a tax on ($32,500-$18,201= $14,299) at a rate of 19% + 2% Medicare Levy. This would amount to your tax obligation to be $2,717 + $650= $3,367. Furthermore, considering you fall within the Low income tax offset limit and Low and middle income tax offset limit of under $37,000, you may be eligible for a tax offset up to a maximum of $445 and $255 respectively, which would make your tax Liability to $2667.

To find out more access the ATO link (https://www.ato.gov.au/Individuals/jobs-and-employment-types/Working-as-an-employee/Income-from-more-than-one-job/)

If that property is your ‘main residence’ it is generally exempt from capital gains tax (CGT). The property must have a dwelling and be the main residence throughout the whole of ownership period. The main residence exemption does not apply to a CGT that happens in relation to a land, garage, storeroom or other structure which does not happen to the dwelling. For non-tax resident of Australia, you are likely not able to satisfy the conditions of the main residence exemption. A dwelling is considered to be a main residence if:

• you and your family live in it
• your personal belongings are in it
• it’s the address your mail is delivered to
• it’s your address on the electoral roll
• services such as gas and power are connected.

There is no set rule on deciding whether you will be fully exempt from paying tax even if you satisfy the factors of main residence. It is a case by case scenario and may only be eligible to a partial exemption. If a property was previously your principle place of residence, then you will also be exempt from CGT if the property is sold within six years of first being rented out. If you re-occupy that property as your main residence, then the six-year period restarts, however this exemption is only available when no other properties are nominated as your main residence.

In the event that you sell an investment property within one year (not your main residence), you are subject to pay the entire amount of CGT at your marginal tax rate. If you sell an investment property holding it over one year, and it was acquired prior to 21^st September 1999, then you can reduce the gains by the indexation method. Any property acquired after 21^st September 1999 and held for greater than 12 months can only use the discount method. The taxpayer in this instance is able to get a 50 percent CGT discount. For instance, if the proceeds on the sale of the property held for greater than 12 months was $1 million and the cost base of the asset was $800,000, then the taxpayers gain is $200,000 and the taxpayer is only subject to pay CGT on $100,000 as the other $100,000 is discountable.

To find out more visit: https://www.ato.gov.au/general/capital-gains-tax/your-home-and-other-real-estate/your-main-residence/ & https://www.ato.gov.au/General/Capital-gains-tax/Working-out-your-capital-gain-or-loss/

Visit: https://www.ato.gov.au/Individuals/Investments-and-assets/Residential-rental-properties/rental-expenses-to-claim/ to find out what you can claim on your rental properties.

You make a capital loss when the proceeds on the sale of the investment asset is less than its cost base. In this event, you are not required to pay the CGT, however you can subtract that loss amount from any other gain you may have got from selling another investment asset within that same income year to calculate your net capital gains or losses for the year for tax purposes. If that investment was the only loss for the year, you can carry forward that loss against future year capital gains. You cannot however deduct the capital loss from other income.

To find out more visit: (https://www.ato.gov.au/individuals/capital-gains-tax/calculating-your-cgt/using-capital-losses-to-reduce-capital-gains/)