So a colleague of mine has been telling me that whatever Ive been taxed on during my first year of residency can be claimed back entirely
Is this true? Im mostly eyeing on the tax applied on my salary since that is a significant amount.
i started work early 2017 so my total earnings fall in the second bracket ($18,201 – $37,000), my payslip shows around $6k gone to income taxNot really.
The level of tax depends on your income in the financial year, since you arrived as a Permanent Resident.
So it is entirely possible that you may not need to pay any tax if your income was not high enough in the financial year (July 2016-June 2017).
Less than $18,200 and all your tax should be refunded: https://www.ato.gov.au/rates/individual-income-tax-rates/
More, and you may or may not get some back...
You don't actually claim it back - you will get a Payment Summary from your employer that shows how much you earned, and how much tax was withheld.i started work early 2017 so my total earnings fall in the second bracket ($18,201 – $37,000), my payslip shows around $6k gone to income tax
how much can i claim back?
cant thank you enough - for the detailed reply - really appreciate itYou don't actually claim it back - you will get a Payment Summary from your employer that shows how much you earned, and how much tax was withheld.
The Australian Tax Office will look at that, any other income, deductions, rebates, etc that you may have mentioned on yout tax return, and they will work out what refund they will send you, if any.
Obviously I can't tell you how much you'd get, it depends on everything you put in your tax return. However, the basic rate is as per the link I gave you - in your case, you might expect tax of about 19c for each $1 over $18,200. So you can work out how much more than that you earned, take off $18,200. Multiply the balance left over by 19% and that is roughly the tax you should have paid.
You could probably add a few hundred for the Medicare levy which is also accounted for at tax time. Hopefully, any balance left over will be refunded to you.
I am not a tax agent or tax adviser and even a professional would not guess about any refund until they see your full, completed tax return.