Question

Tax rate on bank account interest for non-resident?

I'm a non-resident of Australia but still have money in an Australian bank account. They are currently deducting the maximum rate (about 46.5%) of my interest for tax - is this the correct rate?

(I fully fulfil the "non-resident" criteria on the taxation website, am not in Australia and have no Australian income)

Thanks

3 years ago - 1 answers

Best Answer

Chosen by Asker

You should let the bank know that you are a non-resident so that they only withhold 10% final tax. However, if you have a joint account with an Australian resident who has not disclosed their tax file number for the account, then the bank can withhold 46.5% tax from the total interest earned in the joint account.

3 years ago