Judd Mahalo earns A$49,396 annually as a bartender. As an international student, he is considered an Australian citizen and must pay A$3,572 in income tax plus 32.5 cents for every dollar earned over A$37,000, as well as a A$988 Medicare levy. Like all individuals, Judd must file his tax return online by October 31st or risk penalties from the Australian Taxation Office. To ensure his taxes are filed correctly and on time, Judd hires a tax accountant who understands Australian tax laws and can find deductions, maximize his finances, teach him organization, and potentially save him money.
Judd Mahalo earns A$49,396 annually as a bartender. As an international student, he is considered an Australian citizen and must pay A$3,572 in income tax plus 32.5 cents for every dollar earned over A$37,000, as well as a A$988 Medicare levy. Like all individuals, Judd must file his tax return online by October 31st or risk penalties from the Australian Taxation Office. To ensure his taxes are filed correctly and on time, Judd hires a tax accountant who understands Australian tax laws and can find deductions, maximize his finances, teach him organization, and potentially save him money.
Judd Mahalo earns A$49,396 annually as a bartender. As an international student, he is considered an Australian citizen and must pay A$3,572 in income tax plus 32.5 cents for every dollar earned over A$37,000, as well as a A$988 Medicare levy. Like all individuals, Judd must file his tax return online by October 31st or risk penalties from the Australian Taxation Office. To ensure his taxes are filed correctly and on time, Judd hires a tax accountant who understands Australian tax laws and can find deductions, maximize his finances, teach him organization, and potentially save him money.
Judd Mahalos, yearly income working as a bartender, is A$49,396
(PayScale, 2014). From the taxable income rates 2012-2013 we can see that Judd pays A$3,572 in tax plus 32.5c for each A$1 over A$37,000. Normally Judd is exempt from paying the Medicare levy because he is a foreign resident (Australian Government, 2014) however because he is a student enrolled in an Australian Institution he is regarded as an Australian citizen and pays a Medicare levy of A$988. Judd, like any other individual is required to lodge his online tax return by the thirty-first of October (Australian Government, 2014). If a tax return is lodged late Judd will most likely get a warning letter however if Judd has more than one tax return outstanding or he has a poor lodgement history, the Australian taxation office may inflict penalties (Australian Government, 2015). To get on top of paying taxes and to help with tax paying Judd is hiring a tax accountant to help get his tax return done and lodged properly and efficiently. A tax accountant is someone who has studied the Australian tax laws for their profession and understands what taxes and deductions exist and also how the Australian taxation office operates. A good accountant will be able to:
Do all the boring work you have to complete each year
Find deductions that you properly had little knowledge about Help you understand how to maximize finances Help you be safe and legal working with the ATO Teach you how to organise files for the following financial year The use of an accountant is tax deductable for the next year. Can save a huge amount of money (Wilson, 2008)