Oz Based Cx Crew vs The Taxman
Thread Starter
Joined: Apr 2002
Posts: 229
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From: Usually Somewhere Else
Oz Based Cx Crew vs The Taxman
Hi all,
Quick Q for those based in Oz with Cx. How do you work the tax? eg, Does Cx deduct/withhold from your salary each month and pay it for you, or do you get paid Gross each month and it's up to you to look after it and see the tax man gets his dues?? (or otherwise).
I'd appreciate any input.
Fly safe, all the best,
FB
Quick Q for those based in Oz with Cx. How do you work the tax? eg, Does Cx deduct/withhold from your salary each month and pay it for you, or do you get paid Gross each month and it's up to you to look after it and see the tax man gets his dues?? (or otherwise).
I'd appreciate any input.
Fly safe, all the best,
FB
Joined: Jun 2005
Posts: 298
Likes: 2
From: in denial
CX pays you your full gross pay into a HK bank account each month.
Most guys then transfer the entire sum back home, calculate the tax, put it in a separate bank account and then pay the ATO at the appropriate time.
Most guys then transfer the entire sum back home, calculate the tax, put it in a separate bank account and then pay the ATO at the appropriate time.
Joined: Mar 2007
Posts: 139
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From: Aus
Request further clarification if I may:
-Confirm "appropriate time" is just once per year? I had heard the ATO does it quarterly
- Put aside tax calculated on salary+super+HDP, but not allowances, correct?
This is a nice little tax break: money in a high interest account (say ING) could earn a couple of grand prior to tax time.....
-Confirm "appropriate time" is just once per year? I had heard the ATO does it quarterly
- Put aside tax calculated on salary+super+HDP, but not allowances, correct?
This is a nice little tax break: money in a high interest account (say ING) could earn a couple of grand prior to tax time.....
Last edited by Blogsey; 15th April 2008 at 22:28.
Joined: Jun 2005
Posts: 298
Likes: 2
From: in denial
"Appropriate time" is either quarterly, or after filing your Australian Tax Return and receiving the demand notice from the ATO.
If you salary sacrifice the full 15.5% pension-received-as-cash into an Australian super fund then it is exempt (obviously) from income tax. So, income tax is calculated on salary + HDP.
VS.
If you salary sacrifice the full 15.5% pension-received-as-cash into an Australian super fund then it is exempt (obviously) from income tax. So, income tax is calculated on salary + HDP.
VS.
Joined: Jan 2001
Posts: 144
Likes: 5
From: Perth WA
Pension tax
Hi VS
Are you sure that salary sacrifice of your 15.5% pension from Cathay attracts no Australian tax? I thought that you were limited to 50,000-100,000 A$ per year salary sacrifice and paid 15% tax on that to the ATO. Is your reasoning that, as you will pay 16% at source in HK, by double tax agreement, this will be in effect tax free in Australia? Or do you know some other scheme?
Are you sure that salary sacrifice of your 15.5% pension from Cathay attracts no Australian tax? I thought that you were limited to 50,000-100,000 A$ per year salary sacrifice and paid 15% tax on that to the ATO. Is your reasoning that, as you will pay 16% at source in HK, by double tax agreement, this will be in effect tax free in Australia? Or do you know some other scheme?
Joined: Jun 2005
Posts: 298
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From: in denial
Hi Bonajet,
I think you're right that you are limited to $50-100K per annum salary sacrifice into super, but 15.5% of base salary only equates to around $18K.
Super is taxed "internally" at 15%, so I guess it isn't actually tax free, but my point is that by salary sacrificing the entire amount into super it is exempt of [U]income tax[U]. I am in the process of setting up a custom fund and will then offset franking credits etc against the 15% tax, but best get your own financial advice on that one!
Cheers,
VS.
I think you're right that you are limited to $50-100K per annum salary sacrifice into super, but 15.5% of base salary only equates to around $18K.
Super is taxed "internally" at 15%, so I guess it isn't actually tax free, but my point is that by salary sacrificing the entire amount into super it is exempt of [U]income tax[U]. I am in the process of setting up a custom fund and will then offset franking credits etc against the 15% tax, but best get your own financial advice on that one!
Cheers,
VS.
Joined: Jan 2008
Posts: 288
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From: YMML
Just to clarify...
"Appropriate time" is either quarterly, or after filing your Australian Tax Return and receiving the demand notice from the ATO.
So, income tax is calculated on salary + HDP.
I think you're right that you are limited to $50-100K per annum salary sacrifice into super
I am in the process of setting up a custom fund and will then offset franking credits etc against the 15% tax
Older pilots should look at the new 'transition to retirement' rules that kicked in last year. After age 55 they can start to draw down a pension that may be concessionally taxed (ie, 15% off their marginal tax rate). At age 60 the amounts may be tax-free.
Rgds
T
Joined: Mar 2007
Posts: 139
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From: Aus
So can someone please clarify, for an Aus based pilot.
-Cathay Pay the Gross pay into your HSBC bank account, withholding zero tax (HK or Aus)
-We then transfer $$ back to Aus (I've heard around $15AUD fee).
-After our first tax return, post 30th June, we lodge a tax return. From then on, the ATO sends a bill quarterly (effectively PAYG).
-The 15.5%. Is given as a gross amount in cash, into the HSBC bank account.
-We can then either spend it (presumably after paying income tax on it), or set up some kind of salary sacrifice into an Australian Super fund (or self managed).
-Is OABL an Australian or HK based company?
-Is any HK tax payed, or is it solely to the ATO
Any errors or omissions?
-Cathay Pay the Gross pay into your HSBC bank account, withholding zero tax (HK or Aus)
-We then transfer $$ back to Aus (I've heard around $15AUD fee).
-After our first tax return, post 30th June, we lodge a tax return. From then on, the ATO sends a bill quarterly (effectively PAYG).
-The 15.5%. Is given as a gross amount in cash, into the HSBC bank account.
-We can then either spend it (presumably after paying income tax on it), or set up some kind of salary sacrifice into an Australian Super fund (or self managed).
-Is OABL an Australian or HK based company?
-Is any HK tax payed, or is it solely to the ATO
Any errors or omissions?
