The Australian tax man strikes

[Meadows]

Hi everyone

 

Just need to blow off a bit of steam.

Been here about 2.5 years now (still paying a mortgage) and just put in our latest tax return. I only work as an admin worker.

The tax man now wants $2100 off me (for my occupational pension of $10000 from the UK) despite my working full time and paying tax on my salary.

My husband is retired and only has $25000 in pensions from the UK and has a tax bill for $1200. Now apparently he does not qualify for the senior supplement as they take my salary into account.

 

We get no benefits or concessions from the Australian government either and we have to maintain our 21 year old as well

 

To add insult to injury Centrelink have written to me today to say I have had too much Family Tax benefit for 2012/2013 (only 2 months received Jul-Sep 12) and I now owe them $317!

[cliffy]

Yes, I have to pay tax on my UK pensions in this country, as they are added to my Australian Income. I have an idea that my accountant claims some % tax free for some reason, can't remember the details without asking.

Did you do your own returns? It may help to seek advice from an accountant to see whether you are claiming all you are entitled to.

Perhaps your 21 year old could get some sort of part-time work to maintain his/her self, otherwise are there any benefits they can claim?

[Blossom]

Agreed on the 21 year old. That is plenty old enough to be getting a job and paying at least token rent.

 

But yes, but is pretty crap. :-(

[scooterdan]

21 and still scrounging from the rents..... Wish I got away with that!!

[Guest jorose]

21 and still scrounging from the rents..... Wish I got away with that!!

 

 

It may be wiser not to assume that the 21 year old is "maintained" merely because they are scrounging. There may be a reason why the 21 year old is dependent upon their parents. Perhaps best not to judge until the full facts are known so that you can then make an informed opinion.

[scooterdan]

May the OP should have explained more!

[Rachiegarlo]

A lot of people here don't charge their children rent or board, particularly if they are studying at uni. The small amount of money these young adults earn usually pays for their clothes, travel expenses, entertainment, phone. It is of course different if they are working full time. Yes it is a hard idea to get your head round that the government thinks that your 21 yo is still a dependent and therefore you should keep them unless you only earn a pittance. The benefits changed last year and you used to be able to get a small amount for your young adult if they were studying, which is why you only got July to September. Its a pain to have to pay it back. I think with our tax system, this is why so many people are keen to maximise tax deductions to claw some dosh back at the end of the tax year.

[Adaobijoy]

sorry about that,ATO are always full of surprises.....

[Guest AliinAus]

It may be wiser not to assume that the 21 year old is "maintained" merely because they are scrounging. There may be a reason why the 21 year old is dependent upon their parents. Perhaps best not to judge until the full facts are known so that you can then make an informed opinion.

 

I agree, don't think the OP needs to give a life story to have a grumble. My daughter will remain at Uni until she's about 22/23, she gets about 15 hours a week work so it doesn't interfere with her studies, she lives at home, we don't claim anything for her, but I don't see her as scrounging.

[Lazy Cow]

May the OP should have explained more!

 

With respect, I don't think Meadows was complaining about the 21yo just the tax bill!

 

I agree that it's easy to focus on the kid's age and think they shouldn't need state assistance but age seems pretty irrelevent to Centrelink.

 

I know a 25yo who apparently couldn't claim because he lived at home. He had been unfortunate with his employment - casual, then retrenchment etc - but it seems that it is the household income that is judged rather than the age of the occupants so, at the age of 25, he was still dependent on his parents for 'pocket money'. Pretty demeaning.

 

We have a kid in the same position; legally an adult but unemployed and totally financially dependent on us.

 

I'm not complaining btw, he's ours and worth every penny!

 

LC

[scooterdan]

Wow... parents must have been stricter when i grew up..... never been out of full time work since i was 17!

[Guest AliinAus]

Wow... parents must have been stricter when i grew up..... never been out of full time work since i was 17!

 

Neither have I, but it had nothing to do with the strictness of my parents, just the career I chose which was at that time a pretty secure one.

[scooterdan]

If i wanted to buy myself stuff, go out with friends, socialise, buy clothes... as soon as i left school that was it....no pocket money...... get a job and support myself!

[Blossom]

If i wanted to buy myself stuff, go out with friends, socialise, buy clothes... as soon as i left school that was it....no pocket money...... get a job and support myself!

Same in my house. And the very short time I was out of work my mum kept a table of how much rent I was in arrears and when I got a job I had to pay it back lol. Certainly 'inspires' you to get a job and move out, which I think was the plan.

[ratters2005]

Just read this post, I must say that some of the comments are disappointing to say the least.

sadly if I was new to this site and looking for support, the pointed comments from some of the contributors would send me elsewhere.

what is wrong with some of you!

if you can't be balanced in a response, maybe it's time to turn your key board off.

To the OP I have a really good agent/accountant if you need his contact umber pm and toucan always seek advice.

My son was 24 when he left home, loved him being here with us, and I never asked for a cent.

thats what I call supporting your kids as they find their own feet.

What he didn't give in rent, he certainly have back in respect.

enjoy your family scrounges or not

:-(

[cliffy]

I have checked and you can claim what is called the UPP (undeducted purchase price) of an Occupational Pension or Superannuation, that is, a proportion of what it cost you to buy the pension or annuity, if you contributed as part of your salary. If you think that may apply to you or your husband, the ATO or any good accountant will be able to advise you.

[sidestep]

The tax man now wants $2100 off me (for my occupational pension of $10000 from the UK) despite my working full time and paying tax on my salary....My husband is retired and only has $25000 in pensions from the UK and has a tax bill for $1200.

Is there a breakdown of how the figures of $2100 and $1200 respectively have been calculated?

[Diane]

Definitely talk to an accountant - a good one should be able to help you offset a whole load of stuff against your tax liability - for instance I have even heard of someone who was able to claim the cost of dog food against their tax, as his dog travelled with him in his van and was "security" for his tools while he was working! (Not sure if that's true, but a good accountant will know that sort of thing). Tax rules and allowances here are a lot different to what most of us have grown up with, so it is hugely worth getting someone's advice.

[Guest jorose]

If i wanted to buy myself stuff, go out with friends, socialise, buy clothes... as soon as i left school that was it....no pocket money...... get a job and support myself!

 

Any consideration given to the fact that the 21 year old may not be physically or mentally able to work? You seem quick to voice your opinion without consideration of the possible full facts which shows a considerable degree of ignorance.

[Meadows]

Hi Jorose

 

Thank you for your support along with Rachiegarlo, Lazy Cow and ratters2005.

Perhaps I should have said that this bill was calculated by an accountant, and he says it is correct. Cliffy- thank you for your suggestion. As it happens our accountant did suggest to check with the pension schemes and I have written to them in the UK- still awaiting for a reply.

As for those who say my son should be in work, he would love to be in work, he has been on 4 successive TAFE courses in order to get a trade apprenticeship since we arrived 2 years ago and is still looking for one. We would not allow him to be unemployed and sitting on his butt, when he could be picking up qualifications to add to his resume. He made the decisions to go back to TAFE and I respect his choices.

Thank you most kindly to those who realised that I did just want to blow off a little steam. Having always worked in the UK (and pay as you earn) and very rarely had to fill in a tax return-it is difficult to get into the mind set of how the tax system works here.

Once again- thank you for your suggestions.

[scooterdan]

Any consideration given to the fact that the 21 year old may not be physically or mentally able to work? You seem quick to voice your opinion without consideration of the possible full facts which shows a considerable degree of ignorance.

 

I don't expect everyone to agree with my posts!! And the OP has now stated that there are no reason apart from studying.... And while that's admirable, I too study while holding a full time position!

[NicF]

Just read this post, I must say that some of the comments are disappointing to say the least.

sadly if I was new to this site and looking for support, the pointed comments from some of the contributors would send me elsewhere.

what is wrong with some of you!

if you can't be balanced in a response, maybe it's time to turn your key board off.

To the OP I have a really good agent/accountant if you need his contact umber pm and toucan always seek advice.

My son was 24 when he left home, loved him being here with us, and I never asked for a cent.

thats what I call supporting your kids as they find their own feet.

What he didn't give in rent, he certainly have back in respect.

enjoy your family scrounges or not

:-(

 

Interestingly most of the pointed comments come from people who don't have children and have no idea what it's like to be in that position. I do have kids but they are still quite young and I still have no idea how I will react or feel when they are that age. It's so easy to make judgement on others but unless you have been in that position you really don't know what it is like.

 

OP, I agree it is rubbish having to pay the extra tax although, despite what you read on the forums, it's not that unusual. I know my colleague gets a tax bill every year and he was most put out when I got a refund this year. I wouldn't be surprised if I got a bill next year though. Is your tax accountant a specialist in the UK and Australian tax systems? If not it might be worth considering finding someone who is as they may have a different view on things for you. I hope your son can find some work soon.

[Guest jorose]

Interestingly most of the pointed comments come from people who don't have children and have no idea what it's like to be in that position. I do have kids but they are still quite young and I still have no idea how I will react or feel when they are that age. It's so easy to make judgement on others but unless you have been in that position you really don't know what it is like.

 

I personally feel that rather than the absence of children being the underlying factor in some of the posted comments (and I don't have children), I feel it's more a case of having the maturity and intelligence to consider all possible angles prior to making accusatory or condemning comments. Unfortunately, not everyone seems to share the same thought process as myself. Once one is aware of all the facts then I personally believe it is acceptable to have a differing opinions

Edited October 19, 2013 by Blossom
Fixing quote

[Lazy Cow]

I don't expect everyone to agree with my posts!!

I study while holding a full time position!

 

Come clean, Dan...are you, maybe, being a bit naughty and simply yanking our chain here?

 

But I am going to react a little bit and suggest that using the logic that "I did it, why can't they" is extremely simplistic.

 

Using that logic no one should be unemployed 'cos you aren't!

 

LC

[Guest Fat Boy Fat]

I left school at 15 & Half, worked constantly including having my own company at one stage. I have studied whilst working like a lot of people do, it doesnt make you special. If I want to support my kids regardless of their age whilst they are at uni or looking for a career that is my decision. It's not them taking advantage it's one family member helping another I simply think family is more important than money.