How do I register with the ATO and become an Australian taxpayer?

 


An individual in Australia needs to register with the Australian Taxation Office to be eligible to pay tax under his or her name. The first step is to apply for a Tax File Number and obtain it. 

TFN is your identification as a tax-payor Australian Citizen. The number holds you eligible for superannuation procedures too. The taxation office will retain the introduction irrespective of whether you change your name, take a new job, move to another state in the country, or settle overseas. 

The application procedure to obtain a Tax File Number depends on the applicant's circumstances. The administration has divided the applicants into the following four categories:

        Applicants born in one of the Australian States have attained 15 years of age and hold an Australian Passport.

        Australian residents without a valid Passport.

        Foreign passport holders and temporary visitors – these people must be living in Australia and are holding a valid foreign passport and renewable visa permit.

        The non-residents of Australia who are earning from the country's resources. These people need a tax file number to claim a refund of the tax withheld.

 Protect your details

TFN records your personal information in detail. It is now up to you to keep the details under stringent security. Do not share your details with anyone. Only the following can ask for such information in Australia:

        The Australian Taxation Office.

        Centrelink.

        Your employer; he can ask for your details once you have joined the job.

        The registered tax agent.

        Your personal banker and financial institution.

        The super fund.

Creating a MyGov account and linking to the ATO

Creating a MyGov account

The MyGov account sets an Australian citizen to a host of Government Services. The taxation office site will ask about an email address while you are creating the account. You must have access to the email id when creating the account and afterward.

The organization will also ask for a valid Australian mobile number when opening the account.

You can log in to your account by entering the account or email id and the password. There will also be a few secret questions to protect your account from hackers' use.

 Linking MyGov to ATO

Before linking the MyGov account to the Australian Taxation Office, you must assure:

        Having the information required for connecting ready for use.

        Not using 'Answer a secret question' to sign in to the account. 

You need to follow the steps while linking to ATO services online:

        Signing into the MyGov account.

        Select the Services tab on the MyGov home page.

        Under services, there is a heading called Link a Service. Select Australian Taxation Office under this heading.

        Answer two questions from the Questions Specific to you. The questions include information relevant to your tax record.

Your linking code will help in case you can't link to ATO. The code is unique. ATO has developed the same for your use.

 Working out Tax Residency for Tax purposes

The taxation office in Australia conducts residency tests for the following groups of people:

        The Australian resident includes people living in the country for tax purposes but not Australian citizens or permanent residents.

        Foreign residents for tax purposes. These people include Australian Visa Permit holders. They are not Australian residents for tax purposes.

 Residency Tests

Residency tests comprise four individual examinations. Each of the specific test aim at a separate group of people. These are:

 Resides Test

Reside test targets applicants with origin in the country. Permanent Australian citizens who have attained their 15th birthday are eligible to pay tax.

Australian Taxation Office considers the following factors in determining residency status:

        Your Physical Presence.

        Family

        Business Ties.

        Employment.

        Location of assets and their maintenance.

        The living arrangements you are in.

 Domicile Test

The test identifies your home and determines tax status based on that. You have an Aussie domicile if you have any permanent residence there. Else, you are a foreign domicile.

 183-day Test

The test applies to outsiders. These people live in the country for more than half of an income year. 

 The commonwealth Superannuation Test

Australian Taxation Office arranges the test for people working on Australian Government Projects or offices overseas. Members of different superannuation schemes also can take the test. 


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