a few questions

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a few questions; Work, Salary and Taxes
Topic Started: Aug 11 2010, 06:41:14 AM (1,077 Views)
phoenixgs	Aug 11 2010, 06:41:14 AM Post #1
Anklebiter Posts: 14 Group: Members Member #3,324 Joined: Oct 12, 2009 I come from... Michigan I now live in... Houston, TX I'm planning to move to... Sydney or Melbourne	Hi all, Ok i had a few questions that i hope yall can help me with. I plan on moving to Melbourne around the 1st of the year of 2011. I will be moving there on a Working Holiday Visa. Will it be hard to find a job there, with that kind of visa? I have looked at websites for jobs and a lot of them say student and working visas need not apply. So that makes me a little scared. Also i have just graduated from culinary school, with a Associates in baking and pastry. I will have about 6 months work experience in a restaurant and i will have 4 years of experience working as a cook on a ship in the military. What can i expect a salary to be around? Also how exactly am i going to be taxed? I have heard that they tax you up to 48% if you are not a resident. Which is frightening. I understand that you can be considered a resident if you are going to be there for more than 6 months which i am, but my concern is that i will start work around February im guessing and since your fiscal year ends at the 1st of july i will have only worked there 5 months, so will i be taxed at 48%? Another thing i was thinking about is that i could try to bartend there as a second job. I have 5 years of experience. How much do bartenders make there since they don't rely on tips? Any advice anyone could give me would be well appreciated. Thanks =)



sheowahya	Aug 11 2010, 10:32:07 PM Post #2
True Blue Mate Posts: 556 Group: Members** Member #196 Joined: Feb 19, 2007	A Working Holiday Visa is not meant for you to live on, it is meant to provide you the means to supplement your holiday time in Australia. The WHV was designed to fill lower qualification jobs such as farm work and hospitality. If you keep that in mind, you will not have a problem finding a job. The WHV has a stipulation that you are not allowed to work more than 6 months for any one employer, hence the no "students or working visas need apply" ads that you are seeing. As a recent graduate with some experience, you should find it easy to find temporary employment in a pub or restaurant. You will be arriving in mid summer, and lots of locals will be wanting to go on holidays, leaving their employers struggling to find someone to fill in for a few weeks. I suggest you get your details listed with employment agencies in the area you want to stay in. Let them know when you will be arriving, and let them know if your visa can be verified using the VEVO system. As soon as you arrive, apply for a tax file number, using this, and making a TFN declaration, you will be taxed at normal rates. You will also be required to file a tax return at the end of the financial year which is 30 June. On the declaration form, you will be asked to declare your residency status. Australia is a self-assessing taxing system. This means that YOU decide if you are resident and thus qualify for the $6,000 tax free threshhold and the lower rates, or if you want to be declared a non-resident and be taxed at non-resident rates starting from dollar one. No employer has the right to tell you to make your declaration as a non-resident, but beware, MANY try to do exactly this!! The minimum wage was recently increased and now stands at weekly pay of $569.90 for a full-time worker, which in Australia is a 38 hour work week. Of course, some industries will pay more than this, and the casual loading rate is currently between 21% and 25% depending on the award that covers the industry in question. You should see this as a great bonus, by forgoing the certainty of a contract and accepting casual work, you will be paid a premium. Base pay for a bartender in Victoria is $15.20 but casual rate is $22.03 (as stated in Registered and Licensed Clubs Award 2010 MA000058). The base pay for a cook grade 2 (pastry cook) is $16.58 and casual is $20.72 (as per Restaurant Industry Award 2010 MA000119). And contrary to popular belief, bartenders do accept tips, but they do not constitute the bulk of pay like in the US. I hope this has helped. Relax, and enjoy your working holiday. cheers, Marilyn
	My Timeline ======= Category 136 BN - Skilled Independent. Skills Assessment: Applied ICAA: 13May05 Addtional Classes Required: 08Aug05 Re-submitted PASA: 05Feb07 Approved as Accountant 2211-11: 26Feb07 Main Visa Application: Sent to ASPC: 12Mar07 Application received: 16Mar07 Acknowledgement received: 10May07 Credit Card Charged: 10May07 CO assigned: TBD Medicals sent UNrequested: 26Jul07 PPC sent UNrequested: 18Jul07 VISA Approved: 07Nov07 Main move to Australia: 17Apr08


shylady	Aug 12 2010, 08:58:18 AM Post #3
oldYank Posts: 4,802 Group: Members** Member #18 Joined: Feb 18, 2007 I come from... By the Shores of GitcheGumee (Longfellow) I now live in... Perth area, Western Australia	You may need to complete a Responsible Service of Alcohol class/certificate to bartend: RSA-FAQ
	"I could�ve turned a different corner, I could�ve gone another place... " ku,'09


phoenixgs	Aug 12 2010, 11:06:47 AM Post #4
Anklebiter Posts: 14 Group: Members Member #3,324 Joined: Oct 12, 2009 I come from... Michigan I now live in... Houston, TX I'm planning to move to... Sydney or Melbourne	Oh boy. This is definitely some information to process. I had planned on trying to get someone to sponser me while i was in australia for work. But it seems like this is going to be much harder than i thought. Thank you very much for your information. You have been a great help. ;-) -Garret



Mimishuze	Aug 12 2010, 07:40:03 PM Post #5
True Blue Mate Posts: 311 Group: Members** Member #3,626 Joined: Apr 10, 2010 I come from... Union, KY I now live in... Sydney, NSW, Australia	sheowahya Aug 11 2010, 10:32:07 PM A Working Holiday Visa is not meant for you to live on, it is meant to provide you the means to supplement your holiday time in Australia. The WHV was designed to fill lower qualification jobs such as farm work and hospitality. If you keep that in mind, you will not have a problem finding a job. The WHV has a stipulation that you are not allowed to work more than 6 months for any one employer, hence the no "students or working visas need apply" ads that you are seeing. As a recent graduate with some experience, you should find it easy to find temporary employment in a pub or restaurant. You will be arriving in mid summer, and lots of locals will be wanting to go on holidays, leaving their employers struggling to find someone to fill in for a few weeks. I suggest you get your details listed with employment agencies in the area you want to stay in. Let them know when you will be arriving, and let them know if your visa can be verified using the VEVO system. As soon as you arrive, apply for a tax file number, using this, and making a TFN declaration, you will be taxed at normal rates. You will also be required to file a tax return at the end of the financial year which is 30 June. On the declaration form, you will be asked to declare your residency status. Australia is a self-assessing taxing system. This means that YOU decide if you are resident and thus qualify for the $6,000 tax free threshhold and the lower rates, or if you want to be declared a non-resident and be taxed at non-resident rates starting from dollar one. No employer has the right to tell you to make your declaration as a non-resident, but beware, MANY try to do exactly this!! The minimum wage was recently increased and now stands at weekly pay of $569.90 for a full-time worker, which in Australia is a 38 hour work week. Of course, some industries will pay more than this, and the casual loading rate is currently between 21% and 25% depending on the award that covers the industry in question. You should see this as a great bonus, by forgoing the certainty of a contract and accepting casual work, you will be paid a premium. Base pay for a bartender in Victoria is $15.20 but casual rate is $22.03 (as stated in Registered and Licensed Clubs Award 2010 MA000058). The base pay for a cook grade 2 (pastry cook) is $16.58 and casual is $20.72 (as per Restaurant Industry Award 2010 MA000119). And contrary to popular belief, bartenders do accept tips, but they do not constitute the bulk of pay like in the US. I hope this has helped. Relax, and enjoy your working holiday. cheers, Marilyn FYI Marilyn, in case no one has told you recently - you are one of the best sources of information on this site. I can't tell you how many questions of mine you have answered over the last six months without even realising it! Thanks!!! ~Mimi
	Gone On a Lucky Country - My Blog About Moving to Australia


Bindie	Aug 12 2010, 09:16:55 PM Post #6
True Blue Mate Posts: 2,194 Group: Alumni Staff Member #43 Joined: Feb 18, 2007 I come from... The US, North America, Earth, The Milky Way I now live in... Canberra, ACT, Australia, Earth, The Milky Way	She is! I KNEW she would reply to this. She's like our own ATO tax representative! Marilyn, you rock. =)
	The future is no place/to place your better days, DMB Canberra, ACT since 2004


AmbroseChick	Aug 12 2010, 10:01:30 PM Post #7
True Blue Mate Posts: 1,367 Group: Members** Member #3,498 Joined: Jan 25, 2010 I come from... Washington State I now live in... Gold Coast QLD I'm planning to move to... nowhere I am happy to be a banana bender	I agree... I can barely remember my phone number - wtg Maz!
	Check it out! Facebook page: Americans Living in Queensland


sheowahya	Aug 12 2010, 11:17:32 PM Post #8
True Blue Mate Posts: 556 Group: Members** Member #196 Joined: Feb 19, 2007	Shylady made an excellent point, some jobs do require additional training, such as the responsible service of alcohol course, but I didn't want to get into too much as I thought I had already babbled on for too much. FYI - most employers will foot the bill of basic courses such as the one mentioned. While it is an unwritten rule, it seems to be accepted that if the course is less than a week in duration, the employer will pay the course fee as it is deductible to them. If however, the employee pays for the course, it may or may not be deductible. This is a very long answer, but the short end of it is, if the course is taken AFTER the offer of employment is accepted it IS deductible. If the course is taken BEFORE the offer of employment is made, it MAY not be deductible, depending on the circumstances, too complicated for here & now. I want to thank all of you for the wonderful compliments blush when I was on the other side trying to get here, I found TONS of help in forums like this. But I noticed that the "old timers" seemed to disappear once they landed, which is a horrible shame as it is the experience in EVERY phase that is so essential. I promised that I would stick around and help the "next generation" to land safely. I do what I can, my occupation is taxation and finance, so that is what I know best and can help with. But sometimes it is just the little things that mean the most, like just reassuring someone that the job market is booming and unemployment here is at historic lows which means opportunities abound for permanent and temporary workers alike. Garret, do not give up on trying to find a sponsor for permanent residency just because it will be difficult. It will be SO worth the time and effort you put into it!!!! Get a job doing what you LOVE to do, not just something to tide you over. Make that job your chance to really shine and the employer may want to keep you around enough to tackle the sponsor paperwork mountain. One thing I have noticed here, Aussies sure do seem to appreciate the American work ethic. Use that to your advantage!! Cheers, Marilyn
	My Timeline ======= Category 136 BN - Skilled Independent. Skills Assessment: Applied ICAA: 13May05 Addtional Classes Required: 08Aug05 Re-submitted PASA: 05Feb07 Approved as Accountant 2211-11: 26Feb07 Main Visa Application: Sent to ASPC: 12Mar07 Application received: 16Mar07 Acknowledgement received: 10May07 Credit Card Charged: 10May07 CO assigned: TBD Medicals sent UNrequested: 26Jul07 PPC sent UNrequested: 18Jul07 VISA Approved: 07Nov07 Main move to Australia: 17Apr08


SanDiablo	Aug 13 2010, 08:38:46 AM Post #9
True Blue Mate Posts: 996 Group: Members** Member #280 Joined: May 1, 2007	If I am not mistaken, pastry chef is one of the skills in demand here - not sure if that will help you get sponsorship - and I am sure Jed will chime in on this one eventually - but it does make it easier to get a permanent visa all on your own without sponsorship. If you consider getting the visa on your own merits, working as a chef here will add to your qualification point total.
	"I'll try anything twice."


phoenixgs	Aug 15 2010, 07:36:29 AM Post #10
Anklebiter Posts: 14 Group: Members Member #3,324 Joined: Oct 12, 2009 I come from... Michigan I now live in... Houston, TX I'm planning to move to... Sydney or Melbourne	Yeah i think i am just going to try and get a bartending job there, since i have alot of experiance doing it. And then i will try to get a pastry chef job somewhere. I really just want to learn and study under someone...so i may just volunteer at a place and then work my magic so they eventually hire me. LOL i dunno, we will see where the wind takes me. Thanks for all of your answers though. You have helped out quite a bit. When you first move there, is it a pretty big shock to the system on how australia operates, or is it so similar to america that you adjust pretty quickly and easily?



sheowahya	Aug 15 2010, 08:49:20 AM Post #11
True Blue Mate Posts: 556 Group: Members** Member #196 Joined: Feb 19, 2007	I found it to be SO much like the US that when something IS different, it is a huge shock. The hardest thing for me to get use to has been the prices!!! Some things are outlandishly expensive, while other things are dirt cheap... to my standards anyway. With the election going on now, I find it difficult to understand their election system, but I guess that would be a topic for people with citizenship, or close to becoming a citizen. I've actually had moments where I forgot I was in Australia!! and actually thought for a second that I was back in The States. Adjustment should be easy for you. Cheers, Marilyn
	My Timeline ======= Category 136 BN - Skilled Independent. Skills Assessment: Applied ICAA: 13May05 Addtional Classes Required: 08Aug05 Re-submitted PASA: 05Feb07 Approved as Accountant 2211-11: 26Feb07 Main Visa Application: Sent to ASPC: 12Mar07 Application received: 16Mar07 Acknowledgement received: 10May07 Credit Card Charged: 10May07 CO assigned: TBD Medicals sent UNrequested: 26Jul07 PPC sent UNrequested: 18Jul07 VISA Approved: 07Nov07 Main move to Australia: 17Apr08


pastrycook-136	Aug 16 2010, 11:43:21 AM Post #12
True Blue Mate Posts: 1,038 Group: Members** Member #1,138 Joined: Jan 13, 2008 I come from... Reading, PA Lived in Miami for the past 16 years. I now live in... St. Kilda East, Melbourne, Victoria.	Chiming in.... Some differences here in Australia are that bread baking and pastry are seperate fields and bread baking is considered to be a trade. The training is different too as it seems most people do a workplace apprenticeship to learn baking and pastry (along with some school courses) and earn qualifications instead of going to school full time like in the US. The US has associate and bachelor degrees and here in Australia there are certificates I, II, III, IV and so on. There seem to be many more seperate and specific job classifications here in Australia.
	"If you want to gather honey don't kick over the beehive!"


mamkai	Aug 16 2010, 03:54:56 PM Post #13
True Blue Mate Posts: 348 Group: Members** Member #3,577 Joined: Mar 12, 2010 I now live in... Melbourne I'm planning to move to... Back to the USA someday	How does residency work with LAFHA? If you claim for LAFHA, are you a resident or non-resident, or are these totally different things?



phoenixgs	Aug 16 2010, 07:25:31 PM Post #14
Anklebiter Posts: 14 Group: Members Member #3,324 Joined: Oct 12, 2009 I come from... Michigan I now live in... Houston, TX I'm planning to move to... Sydney or Melbourne	Wow weird. I would have never thought pastry and bread would be in different fields... I wonder how segregated everything is in my field. Is that everywhere? Or just in restaurants? What are the hotels and resorts like? I just want to learn as much as possible, if its going to be breads, or cakes, pastry, chocolate...you name it i will probably want to learn it when it comes to being a Pastry Chef. Do you have any recommendations of places that i should try to get a job at? thanks for your help;-)



sheowahya	Aug 16 2010, 08:23:45 PM Post #15
True Blue Mate Posts: 556 Group: Members** Member #196 Joined: Feb 19, 2007	Margo Aug 16 2010, 03:54:56 PM How does residency work with LAFHA? If you claim for LAFHA, are you a resident or non-resident, or are these totally different things? Some LAFHAs are subject to FBT and some are not. If your LAFHA is subject to FBT then it is NOT included in your income. If your LAFHA is NOT subject to FBT then it IS included in your income and you will have to pay tax on it. Residency only has to do with your tax status, not any allowances you are given by your employer. Now that the foreign income rules have all changed, and most people can no longer earn foreign income tax free in Australia, a lot of people who use to earn huge salaries tax free, are getting huge tax bills. Some employers were really good and up with the times and re-wrote employment contracts or asked employees to forego raises in favour of the company making tax payments on behalf of the employee. The moral of the story? make sure you understand your employment contract before you sign it, and make sure if there are "exotic" clauses in your contract that you keep up on tax law and how it effects your pay package. Cheers, Marilyn
	My Timeline ======= Category 136 BN - Skilled Independent. Skills Assessment: Applied ICAA: 13May05 Addtional Classes Required: 08Aug05 Re-submitted PASA: 05Feb07 Approved as Accountant 2211-11: 26Feb07 Main Visa Application: Sent to ASPC: 12Mar07 Application received: 16Mar07 Acknowledgement received: 10May07 Credit Card Charged: 10May07 CO assigned: TBD Medicals sent UNrequested: 26Jul07 PPC sent UNrequested: 18Jul07 VISA Approved: 07Nov07 Main move to Australia: 17Apr08


mamkai	Aug 18 2010, 07:40:41 AM Post #16
True Blue Mate Posts: 348 Group: Members** Member #3,577 Joined: Mar 12, 2010 I now live in... Melbourne I'm planning to move to... Back to the USA someday	Thanks!



JackBNimble404	Aug 18 2010, 09:10:21 AM Post #17
Chinwagger Posts: 86 Group: Members* Member #3,833 Joined: Jul 22, 2010 I come from... Atlanta, GA / Columbus, GA I now live in... Sydney, NSW I'm planning to move to... Atlanta, GA	Wait, I thought LAFHA reduced your taxes? If it's subject to FBT which is at a higher rate than regular taxes (isn't it like 46.5%?). From all that I have read, the housing allowance is not subject to FBT and is not taxed. If your gross salary is $100K per year and you get $20K per year housing LAFHA, you don't pay FBT on that $20K and your taxable income would be $80K. And the novated leases you want to try and use the ECM (Employee Contribution Method), when the employer pays some before taxes are calculated and you pay some of the car payment with after tax income. The NL payment is subject to FBT, so making the Employee Contribution helps negated the FBT effects.



Ausson	Aug 18 2010, 10:32:19 AM Post #18
True Blue Mate Posts: 165 Group: Members** Member #3,149 Joined: Jun 3, 2009 I come from... Sydney, Australia I now live in... Canberra, after 15 years in US (12 in Colorado) I'm planning to move to... lets see how this Canberra thing works out	What do you mean by 'most people can no longer earn foreign income tax free in Australia'? I came over in early May and earned one pay check in Australia prior to the end of June 2010. I have almost a full year of income in the US that I will need to declare, but I also paid taxes on that income prior to arriving, so beyond declaring it and having the taxes I paid used to calculate the taxes I'll be liable for on my Australian income I wont be double taxed on that US income will I? Is that statement more to do with investment income? Bloody taxes, if the Australian government were truly serious about stopping the brain drain, encouraging those who have left to return and welcoming new blood to move downunder they should sort this out. I don't mind paying fair taxes on income I've earned in the country in return for good services. Its worse than working in two US states in one tax year and having to figure out partial year tax returns for both states. Add to the mix that my husband is still in the US makes me wonder just what our 2011 tax return will look like when we file in 2012. If the tax burden is too great that would be one huge reason for me to return to the US.



mamkai	Aug 18 2010, 02:39:00 PM Post #19
True Blue Mate Posts: 348 Group: Members** Member #3,577 Joined: Mar 12, 2010 I now live in... Melbourne I'm planning to move to... Back to the USA someday	Wow, I thought that I was sort of informed but I am VERY confused now. What is a novated lease? We are still checking on the LAFHA, but we do have a car provided by the company so I assume that this will be subject to FBT. We do not see bills for any auto expenses, including our petrol, so I guess we will be taxed for most of that? As far as taxes go, my husband's first paycheck was in July, so we were advised by his HR department not to file taxes in AU even though he actually worked for half of June. I'm also curious about Ausson's question regarding double taxation. I just assumed that it would more or less work out with the tax treaties. (Other than a higher rate here in Au, obviously.) I'm definitely finding someone to help with our taxes this year. I guess I would like to know if there is anything else I should do NOW that will lower our taxes. One more question for anyone whose head ISN'T spinning... we do invest heavily in the employee stock purchase plan and typically unload as soon as we can and pay the capital gains taxes. He has asked around his office and most co-workers don't participate. Are capital gains taxes treated similarly here or should we seriously consider holding the stock longer in order to avoid higher tax rates? I suppose it might be worth mentioning that my husband works for an Australian company (same name as US, but subsidiary of some sort I think) and is paid in Australian dollars just as any Aussie working for his company here.



sheowahya	Aug 18 2010, 11:35:48 PM Post #20
True Blue Mate Posts: 556 Group: Members** Member #196 Joined: Feb 19, 2007	JackBNimble404 Aug 18 2010, 09:10:21 AM Wait, I thought LAFHA reduced your taxes? If it's subject to FBT which is at a higher rate than regular taxes (isn't it like 46.5%?). From all that I have read, the housing allowance is not subject to FBT and is not taxed. If your gross salary is $100K per year and you get $20K per year housing LAFHA, you don't pay FBT on that $20K and your taxable income would be $80K. And the novated leases you want to try and use the ECM (Employee Contribution Method), when the employer pays some before taxes are calculated and you pay some of the car payment with after tax income. The NL payment is subject to FBT, so making the Employee Contribution helps negated the FBT effects. Your employer pays the FBT not you. The amount of any fringe benefits subject to FBT is reported on your group certificate and you (or your tax agent) will enter this amount on your tax return. It does NOT directly effect your tax bill/refund. It may, however, change your eligibility for certain tax offsets. The taxability of allowances depends on the nature of the allowance. For example, automobile allowances are taxable as they are allowed to be a tax deduction (using car for work and a whole slew of other complicated rules). Housing is non-taxable as no one can claim a deduction for basic housing allowances. Some utilities are taxable and some aren't, usually this is done on some sort of pro-rated method. You are correct about the employee contribution. As long as the employee makes the minimum contribution, the fringe benefit is tax free to the employee AND not subject to FBT for the employer, making it the best way to get/give benefits for all concerned.
	My Timeline ======= Category 136 BN - Skilled Independent. Skills Assessment: Applied ICAA: 13May05 Addtional Classes Required: 08Aug05 Re-submitted PASA: 05Feb07 Approved as Accountant 2211-11: 26Feb07 Main Visa Application: Sent to ASPC: 12Mar07 Application received: 16Mar07 Acknowledgement received: 10May07 Credit Card Charged: 10May07 CO assigned: TBD Medicals sent UNrequested: 26Jul07 PPC sent UNrequested: 18Jul07 VISA Approved: 07Nov07 Main move to Australia: 17Apr08


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