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chandd4(Newbie)Newbie
24 July 2024

Hi All,

I am in Australia as a temporary parent VISA (No work rights). I stay in Australia waiting for my PR grant. Meanwhile, I brought my life savings and kept in an ANZ Bank Account who were taxing me on highest bracket (49%). This was incorrectly charged on my interest income because I am a non-resident for tax purpose and any withholding done on Non-resident interest income should be done at 10%. The bank was at fault and over with-held from my interest income approximately $1000.00. I got the details rectified in the bank but they mentioned any refund needs to be claimed by ATO. Can anyone please tell me or help me with the following question:

  1. How can I claim a refund from ATO if I was incorrectly taxed extra amounts?
  2. Since I do not have a TFN or any sort of account with ATO, how will ATO identify me and verify what tax the bank has charged me?
  3. Please help me on step-by-step approach on claiming the incorrect tax withheld on my income.
  4. IF ATO is not able to refund, then who should be liable in refunding the incorrect tax withheld?

Tax Year: 2022-2023


Thank you

2,615 views
2 replies
2,615 views
2 replies

Most helpful response

Most helpful reply

RachATO(Community Support)Community Support
25 July 2024

Hi @chandd4,

 

I know what's happened here. For non-residents, banks withhold 10% from the interest income if the account holder has given them their TFN. Without the TFN, they'll apply a higher rate of tax.

 

But you should be able to claim it back, and I'll cover this while answering your questions.

 

1. You'll need to lodge a tax return for the 2022-2023 financial year to claim back the over-taxed amounts.

2. To lodge a tax return, you'll need to apply for a TFN following this online application guide for temp visitors. If you're not able to apply online, you can apply via post.

3. To claim the refund, the instructions are provided here. Fill in question 10 (Gross Interest), and at label L, enter the gross amount of interest, and label M enter the total amount of tax withheld. You'll still need to fill in other details including your tax residency. Just look through each question and see if it applies to you.

4. The taxed amounts should be refunded by us if your bank has told you to do it that way. Some banks might be able to fix things on their end, but it seems like they've steered you to us for this.

 

Hopefully this info gets you on track with it all :)

 

All replies

Most helpful reply

RachATO(Community Support)Community Support
25 July 2024

Hi @chandd4,

 

I know what's happened here. For non-residents, banks withhold 10% from the interest income if the account holder has given them their TFN. Without the TFN, they'll apply a higher rate of tax.

 

But you should be able to claim it back, and I'll cover this while answering your questions.

 

1. You'll need to lodge a tax return for the 2022-2023 financial year to claim back the over-taxed amounts.

2. To lodge a tax return, you'll need to apply for a TFN following this online application guide for temp visitors. If you're not able to apply online, you can apply via post.

3. To claim the refund, the instructions are provided here. Fill in question 10 (Gross Interest), and at label L, enter the gross amount of interest, and label M enter the total amount of tax withheld. You'll still need to fill in other details including your tax residency. Just look through each question and see if it applies to you.

4. The taxed amounts should be refunded by us if your bank has told you to do it that way. Some banks might be able to fix things on their end, but it seems like they've steered you to us for this.

 

Hopefully this info gets you on track with it all :)

 

chandd4(Newbie)Newbie
2 Sept 2024

Hi RachATO,

I sent the paper ATO refund application. As mentioned on my Form, it asked me to sent post to ATO Office in Moonee Ponds. For some reason it has been redirected to Canberra AU Post Office. Should I understand this has been re-directed to ATO Head Office in Canberra? How will I know if ATO has received it?


Thanks

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Claiming Refund for Over-withheld Tax on Interest Income for Non-Resident | ATO Community