Holders of a Working Holiday Visa have been paying a special
tax rate in Australia for years.
Here is a brief summary of the tax rates for Working Holiday Visa holders, including a comment on what is taxable and what happens if a Working Holiday Visa holder applies for another visa, such as an employer-sponsored visa or a partner visa.
Tax rates and who qualifies
You are a working vacationer if you hold one of these two visa subclasses:
417 (working holiday)
462 (work and vacation)
If you are a tax resident in Australia - generally, if you earn income from an Australian source - and are the holder of one of these visas, the first $ 37,000 of your income will be taxed at 15%.
The balance is taxed at the regular income tax rates.
This means that the holder of a working vacationer visa will not receive the $ 18,200 tax-free threshold that Australian tax payers are entitled to.
Please be aware that there is an ongoing legal case that could affect working vacationers who are tax resident in Australia and are from any of the following countries:
Temporary exemptions for taxable persons and modification of visas
Readers of our blogs will be aware that working holiday holders usually also have access to the temporary tax exemptions, where foreign source income, such as income from a rental property outside Australia, or interest / dividends on investment funds made outside Australia. held, not taxable. in Australia.
However, these tax exemptions are no longer available when a temporary visa holder becomes the de facto spouse or partner of an Australian citizen or permanent resident, or a person who is an eligible New Zealand citizen.
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In this situation, income from a source outside of Australia may become taxable in Australia - at visa rates for working holidaymakers.
In addition, when a holder of a Working Holiday Visa in Australia applies for another visa - such as an employer-sponsored visa or a partner visa - the Working Holiday Tax rates apply until the Working Holiday Visa period ends, i.e. when the bridging visa resulting from the application for an onshore visa takes effect, or the onshore visa is granted, whichever is earlier.
Contributing to retirement and leaving Australia
An employer of a working vacationer visa holder must also pay a pension if you are an eligible employee.
Please note that if you are a working holiday visa holder, you can apply to have your super payable to you personally if and when you leave Australia permanently.
This is called a Departureing Australia Superannuation Payment (DASP).
Any DASP paid to a working vacationer on or after July 1, 2017 will be subject to 65% tax withholding.
How Numberspro Tax can help
Numberspro Tax is experienced in preparing tax returns for those who have more complex visa regimes.
Please complete the application form on this web page if you have a Working Holiday Visa, or if you are in possession of such a visa and are the holder of another type of visa that allows you to stay in Australia after the expiration of your Working Holiday Maker visa.
We would be happy to have a free initial consultation about your situation and how we can help you with your Australian tax return.
For more information visit website https://www.numberspro.com.au/