All Working visa posts

Re: Unpaid super

Raneen — Tue, 25 Feb 2020 14:27:14 GMT

Awesome NateH, thank you for your help

Re: Unpaid super

NateH — Tue, 25 Feb 2020 01:57:47 GMT

No worries

Yes, if you don't have an active super account in Australia we will hold onto the money for you and you can claim it back from us

Thanks, NateH

Re: overseas transfer

macfanboy — Sun, 23 Feb 2020 03:02:19 GMT

Generally, if you're an Australian resident for tax purposes and you transfer money from an overseas bank account to an Australian bank account isn't considered as income and you won’t need to pay tax on the transfer. However, any interest you earn on the money in your Australian bank account will need to be reported in your tax return for the relevant year.

overseas transfer

josephkannath84 — Sat, 22 Feb 2020 13:12:24 GMT

I would like to transferAUD 40000 from Indian account to Australian account to buy a house. Do i need to pay any tax for this sum when its reached in Australian account??? This is my 3rd year in Australia recently changed to 489 visa from 457.

Re: Unpaid super

Raneen — Sat, 22 Feb 2020 10:50:28 GMT

Thanks for your reply Nateh, this definitely helps

I'm just wondering, since I've already claimed my super back and it has been paid off, this has automatically closed my account with my super fund. So does this mean that the remaining money will now directly go into the ATO? Is it where I'll have to claim the money after the DASP?

Many thanks for your hep!

Re: Unpaid super

NateH — Fri, 21 Feb 2020 05:30:40 GMT

Hi ,

You would be eligible to claim the remaining money back under DASP if you still meet the criteria. Just fill out another DASP application once the money is in your fund.

Hope this helps. Thanks, NateH

Re: Tax ruling on WHM ruled invalid by federal court

NateH — Fri, 21 Feb 2020 05:08:05 GMT

Hi ,

We have released a statement on this at the time of the original decision. We'll post any outcomes on our website.

Thanks, NateH

Re: Tax ruling on WHM ruled invalid by federal court

NMCFREDERICK — Fri, 21 Feb 2020 03:53:49 GMT

Yes I am aware it only for NR WHM, which will apply ro prior tax years for me personally.

Thanks

Re: Tax ruling on WHM ruled invalid by federal court

TaxedoMask — Fri, 21 Feb 2020 03:45:13 GMT

iirc, doesnt apply to resident WHM (since theyre taxed the same as residents), only NR WHM.

open to appeal so still pending.

Tax ruling on WHM ruled invalid by federal court

NMCFREDERICK — Wed, 19 Feb 2020 05:19:05 GMT

Has an outcome come from the recent ruling by the federal court that WHM tax was deemed in valid and a form of discrimination in violation of tax treaties Australia has signed?

Furthermore, when can WHM now working as residents know the final verdict?

Thanks

Niall

Unpaid super

Raneen — Tue, 18 Feb 2020 22:16:31 GMT

Hello,

I have recently left Australia after living few years, on a WHV, then on a 457 sponsor.

I have applied for a DASP and claimed my superannuation after cancelling my visa. The money was paid to me by my super fund last week, which I believe has also led to the automatic closure of my super account.

However, I had also filed a while ago a superannuation guarantee investigation against a previous employer which I had doubt about regarding payements of my super. This investigation was found in my favour and I've received a message from the ATO to inform me of it today.

The problem is I've already cancelled my visa and claimed my super back.

Will I still be able to retrieve this money that is owed to me by the previous employer, and if so, how?

Many thanks,

Re: holiday makers

KylieS — Tue, 18 Feb 2020 01:49:25 GMT

Hi ,

That would be a question for fair work Australia, or part of your employment contract or agreement.

KylieS

Re: WHV Sub 417

KylieS — Mon, 17 Feb 2020 22:21:48 GMT

Hi ,

Check out the information on Foreign passport holders TFN application.

If you meet the criteria you will be able to apply on line.

KylieS

WHV Sub 417

bae995 — Mon, 17 Feb 2020 07:45:35 GMT

Hello there i'm from the UK and was granted my WHV 417 recently. The Department of Home Affairs say that i need a TFN (Tax File Number). What is the best way that i can apply for this please? Thank you in advance.

Re: medicare levy exemption during permanent residency process

wonderabouttax — Mon, 17 Feb 2020 03:57:17 GMT

I am assuming you did on-shore residency application. When you first applied for permanent residency, Immigration will send a notification letter and it would allow you to go to Centrelink and get a Medicare card. As mentioned in the reply you get from ATO, you were no longer exempted from Medicare after your application was submitted, which is March 2018.

Sorry to say that you won't be getting Medicare levy back, should have ditch expat insurance, get Medicare card, and probably also get private health insurance for residents if you are over 30 yrs old.

medicare levy exemption during permanent residency process

FranMG — Sun, 16 Feb 2020 05:18:29 GMT

Hi - I have been living in Australia since 2015 and I was on the 457 visa until April 2019. I used to have a overseas international expat health insurance and get my medicare levy back in full at the end of each tax here.

- In March 2018 I have applied for permanent residency

- I kept my overseas international health insurance for the time being and did not register for medicare

- I got granted my permanent residency in April 2019 and applied for Medicare shortly after

- I was issued my medicare card early May 2019

I was under the assumption that I would get back my Medicare Levy surcharge between June 2018 and April 2019 since I wasn't actually registered for Medicare. I filled out my Medicare Enititlement statement, however I got a rejection which said the following: ''your application for a Medicare Entitlement Statement has not been approved. This is because our records show that you are already enrolled in Medicare
and have been issued the Medicare card.Your Medicare eligibility commenced from the date you applied for permanent residency in Australia.''

Does this mean I will not get my Medicare levy back? Although I wasn't enrolled in it for 10 of the 12 months of the tax year?

Thanks for your help.

holiday makers

kk310 — Fri, 14 Feb 2020 07:05:47 GMT

Are holiday makers entitled to annual leave.

Re: Working Holiday Maker Visa to Partner Visa Mid year tax treatment - Employer Treatment

NateH — Thu, 13 Feb 2020 01:41:15 GMT

Hi ,

We've answered a very similar question on the Community before about changing visa mid year. Let us know if you have any further questions!

Thanks, NateH

Working Holiday Maker Visa to Partner Visa Mid year tax treatment - Employer Treatment

carla — Sun, 09 Feb 2020 23:20:25 GMT

We have an employee who has changed from a working holiday Maker visa to a partner visa subclass 820.

Am a little confused as to what their tax rights are in regards to tax free threshold.

July19-Oct 19 while on WHM visa she was paid $23,269 and was taxed at 15%

Nov19 - Jan20 she has earned $19,539 and taxed at 19% which is the rate of an Australian resident. When she switched visa.

However is she viable for the tax freethreshold? Or does she need to claim this back when doing her tax return at the end of year.

Cheers

Re: 189 VISA Recognition of your qualifications

KylieS — Thu, 06 Feb 2020 07:21:38 GMT

Hi ,

No this would be a private expense.

KylieS

Re: WHV to (Bridging) Partner Visa

ChrisR — Thu, 06 Feb 2020 06:07:38 GMT

Thanks for your question.

If you are no longer a working holiday maker (WHM) visa holder, you won't need to select the WHM box at question 8 of the TFN declaration form. The correct box will depend on whether you are a resident for tax purposes.

For more information about how to complete the tax file number declaration as well as how to work out your tax residency, refer to our website.

Hope this helps.

Thanks, ChrisR

189 VISA Recognition of your qualifications

Chris152 — Mon, 03 Feb 2020 16:15:24 GMT

To apply for a 189 VISA my qualifications have to be recognised by the Australian Institute of Medical Scientists, is this cost tax deductible?

Re: WHV to (Bridging) Partner Visa

Malena — Mon, 03 Feb 2020 04:02:44 GMT

HI prilly,

Can I ask you how did this all work out for you?

I am on the same situation, as I have my bridging visa since December and I cant figure out how to fill out my TFN Declaration form now on.

Re: 417 > Defacto Bridging Visa > 820 Visa Tax Rates

macfanboy — Fri, 31 Jan 2020 02:29:54 GMT

The income you get to keep, but you o need to declare it in your tax return and if you have already paid tax on it in the UK then you will apply for a foreign tax offset in your tax return so you are not double taxed.

Re: 417 > Defacto Bridging Visa > 820 Visa Tax Rates

georgeheathcote — Fri, 31 Jan 2020 01:58:59 GMT

Thanks for your response.

And what about all the money I earnt from the UK? If I am still classed as a backpacker for tax purposes then surely I shouldn't be paying that income to the Australian Government? It seems a little unfair.

Re: Linking with MyGov

NateH — Fri, 31 Jan 2020 01:24:00 GMT

Hi ,

Sorry to hear that you are having trouble linking to our services. If you want to link to us there are a number of documents that we could use to verify your identity. Have a look at our article about linking your myGov account to the ATO which goes through everything you need.

Hope this helps. Thanks, NateH

Re: 417 > Defacto Bridging Visa > 820 Visa Tax Rates

macfanboy — Fri, 31 Jan 2020 01:10:17 GMT

Whenever you are on a "Bridging Visa" you are deemed to be on the visa prior to being on it as you have not yet achieved the new one yet. Therefore your earnings are taxed at Working Holiday rates

https://www.ato.gov.au/rates/schedule-15---tax-table-for-working-holiday-makers/

In your tax return, you should specify that you are an Australian resident for tax purposes so that you can benefit for tax offsets that you would qualify for.

417 > Defacto Bridging Visa > 820 Visa Tax Rates

georgeheathcote — Fri, 31 Jan 2020 00:09:07 GMT

Hi,

I hope someone can give me a clear answer as I can't help but get confused online.

I arrived in Australia on October 13th, 2017 with my Australian partner in the hope to move here. I am from the United Kingdom and the only way I could get in was on a 417 working holiday visa. I came in on this and started my Aussie life with my partner living in Brisbane and working as a contract graphic designer for half a year. After 6 months we decided to move to Melbourne where I continued to work as a contract graphic designer. I applied for a defacto (820 visa) which granted me a bridging visa which became active on October 13th, 2018. I have recently had my 820 granted (yesterday).

I continued as a contract designer until February 2019 in which I took a full-time job with a design agency. I was under the impression that my tax rate would be that of an Australian resident due to the fact I am on a bridging visa and my intent to obviously reside permanently in Australia.

I also run a small side business offering my design services, most of which my income comes from back in England. I assumed I would be paying the tax on my UK earnings here in Australia. After speaking to my tax agent, he has informed me I either owe around $11,000 tax or around $4,000 tax depending on my residency status.

Could someone please let me know what the deal is. Am I taxed as an Australian resident being on a bridging visa which has now lead to my 820 visa being granted? If I am not and the ATO still class me as a backpacker on a 417 (what a joke that would be), surely I should not be claiming my UK earnings here and should pay that to the UK government?

Thanks in advance and I hope it all makes sense.

Linking with MyGov

emilyab — Tue, 28 Jan 2020 17:18:38 GMT

Hello,

I have been having trouble linking myGov with the ATO. I have tried several times by answering questions specific to me but the system is not recognising my bank account or super account details. I rang the ATO and tried to get a linking code but was told that I can't because I don't have the documents to verify my identity.

I'm back in the UK now, I was on a working holiday visa which has now expired, as has my medicare card, and I don't have any of the other documents.

Not a clue how to get around this, any help would be much appreciated.

Cheers

Re: Can WHM access low income offset and LMITO?

RachaelB — Fri, 24 Jan 2020 05:22:50 GMT

Hi ,

Thanks for your question!

is correct about WHM entitlement to offsets, but I'd like to add a little more information.

Generally speaking, a WHM is always deemed a non resident for tax purposes. Even if they have changed to a bridging visa, they will continue to be taxed on WHM rates until their visa status changes again. (See Schedule 15 for further information.)

For example:

A taxpayer arrives in Australia in August 2018 on WHM visa and commences work. WHM rates apply to income earned at this time.
Taxpayer later applies for a change in visa status, and is placed on a bridging visa in the interim. WHM rates will continue to apply
Taxpayer is granted a student visa in January 2019 and has determined that they are a resident for tax purposes from the moment of their arrival in the country. Resident tax rates can apply from this point in time, or the taxpayer can continue having tax withheld as a WHM, as WHM rates are applied regardless of residency status.
On the tax return, all income earned for the duration of the taxpayer's WHM and bridging visa periods must be reported in the "Working Holiday Maker net income" section. Ideally, if the taxpayer has had the same employer for WHM and non WHM income, they should have two separate payment summaries.

In this example, the taxpayer's change in visa status would allow them to indicate both WHM status and resident status on the income tax return. They would receive the same tax offsets as a resident and pay the Medicare levy (unless exempt) but would generally not recieve the full benefit of the tax-free threshold, except in certain circumstances.

It's probably worth checking with the taxpayer themselves as to what their actual circumstances are, and making sure that their information is reported accurately on the return.

Hope this helps,

Rachael B.

Re: Can WHM access low income offset and LMITO?

macfanboy — Fri, 24 Jan 2020 00:17:16 GMT

No Working Holiday workers are not entitled to the Low Income and the Low-Middle income offsets.

I would be checking the return to be sure that it is taxed at working holiday rates.

If they were intending to stay, were here more than 183 days, and they were now on a bridging visa, they may be entitled to those offsets?

Can WHM access low income offset and LMITO?

Amandash — Thu, 23 Jan 2020 06:51:15 GMT

Can working holiday makers access low income offset and LMITO. I would have thought the answer was no however I have a notice of assessment allowing the offsets even though handitax does not.

Re: 482 visa and passive income

macfanboy — Tue, 21 Jan 2020 01:44:41 GMT

No you don't need to disclose anything that is not taxable.

Re: 482 visa and passive income

jasonrademan — Tue, 21 Jan 2020 01:02:43 GMT

Thanks

do you know if their is a requirement to disclose this information in the tax return as non-taxable income?

Re: 482 visa and passive income

macfanboy — Tue, 21 Jan 2020 00:16:14 GMT

As an Australian resident for tax purposes who is here under a Tempory Visa:

Most of your foreign income is not taxed in Australia except income earned from employment or services performed overseas while you are a temporary resident. This income is subject to income tax and would still be declared in your return for the year in which you earned it. If you paid tax in a foreign country, you may be entitled to claim a foreign income tax offset when you lodge and declare that income in your Australian tax return.

482 visa and passive income

jasonrademan — Mon, 20 Jan 2020 23:37:58 GMT

Hi,

I arrived in Australia 6 months ago with my family. My wife was granted a subclass 482 visa. We are in the process of applying for permanent residency, however this will probley only be granted in the next 18 months. We have permanently relovated to Australia and I am an Australian resident for tax purposes.

I have been performing some consulting work for an Australian company as well as my previous employer who is based in offshore. I will be reflecting this consulting income in my tax return and will be paying tax on it as this is Ausutralian sourced income.

I have some offshore assets that generate income (ie. Interest and dividends), not Australian souced, and in additon to this I will be receving some commission payments for work performed prior to relocating to Australia.

My understanding is that this passive income, ie interest, dividends and commisision, is NOT taxable while I am still on a 482 visa.

Please can you confirm that my undesrtanding is correct and advise how these amounts should be reflected in my tax return when I file.

Thanks

Re: Status of Working Holiday Maker (WHM) in Personal Details Section

KylieS — Mon, 20 Jan 2020 01:37:59 GMT

Hi ,

The information on mygov can come from your previous income tax return or Department if immigration. I would suggest checking both of these areas. If it was your last income tax return you will need to do an amendment.

Thanks

KylieS

Re: Working Holiday Maker Doing Freelance Work

macfanboy — Sun, 19 Jan 2020 00:16:53 GMT

Any earnings that you earn under a Working Holiday visa are taxed and should be declared.

Yes, register for an ABN.

Working Holiday Maker Doing Freelance Work

dst — Sat, 18 Jan 2020 10:58:39 GMT

I am a USA resident currently residing in Australia under a working holiday (class 462) visa. I have found work on UpWork.com doing freelance computer programming, and I am wondering if I should register for an ABN and pay taxes on those earnings in Australia for the next 3 months that I will be here, or if I should pay taxes on that work in the USA. I have applied for a TFN but not received it yet. If I don't pay taxes on those earnings in Australia, when I leave in 3 months, it's possible that I won't have earned any taxable income here. Is that even legal if I'm here under a working holiday visa? Thank you so much for your help!

Re: Status of Working Holiday Maker (WHM) in Personal Details Section

BenjaminChan — Thu, 16 Jan 2020 02:46:32 GMT

I am sorry if my question was confusing. Thank you so much for trying to solve my enquiry.

I access my personal details sections as below:

Access into myGov account >>> 2. Link with Australia Taxation Office Service >>> 3. Click “ Find my TFN” >>> 4. Personal Details >>> 5. Working holiday maker (WHM) is indicating “No”.

Appreciate your further advice.

Thank you again.

Re: Status of Working Holiday Maker (WHM) in Personal Details Section

NateH — Thu, 16 Jan 2020 01:27:37 GMT

Hi ,

As has said we are not sure where you are referring to. If this is from your employer you may need to either let them know that this is incorrect or submit a new TFN declaration.

If you are concerned that this is on your account with us you may need to get in contact with us over the phone to talk to an operator and get them to check.

Thanks, NateH

Re: Status of Working Holiday Maker (WHM) in Personal Details Section

macfanboy — Sat, 11 Jan 2020 00:30:37 GMT

"however the status of my Working Holiday Maker (WHM) in my personal details section is indicating "NO"."

Which personal details and where?

Status of Working Holiday Maker (WHM) in Personal Details Section

BenjaminChan — Fri, 10 Jan 2020 07:00:19 GMT

Hi everyone.

I am currently holding Work and Holiday visa (subclass 462), however the status of my Working Holiday Maker (WHM) in my personal details section is indicating "NO". Does it mean that Australian Taxation Office has wrongly updated my Working Holiday status?

Appreciate any kind advice/answer.

Thank you in advance.

Re: TFN Creation

NateH — Fri, 03 Jan 2020 00:33:21 GMT

Hi ,

As said we have had system maintenance the past few days but it all should be working again now. Let us know if you are still having trouble applying for your TFN.

Thanks NateH

Re: TFN Creation

macfanboy — Tue, 31 Dec 2019 00:51:21 GMT

Keep trying via the ATO.

Under no circumstances pay for a Tax File Number.

Those are just businesses that use the same system as you would.

The ATO has been down lately.

Don't worry too much about it, you will be taxed on your total taxable income for the financial year, so if you end up paying more tax to begin with it will be returned to you.

TFN Creation

Abhijith — Mon, 30 Dec 2019 05:38:19 GMT

Hello,

I am Abhijith S from India, recently moved to melbourne with 457 partner visa and trying to create new TFN from past one week but server is noty responding and it keeps telling me to try next day. Please advice

Re: DASP

LukeS — Mon, 23 Dec 2019 05:34:58 GMT

Hello

Sorry to read about your wait.

Depending on how you made the claim the estimated service standard does vary. During perk times the ATO may not be able to process within our normal service standards.

To check on the progress or to confirm we have received your DASP I would recommend giving the ATO a call on our international number +61 2 6216 1111 8.00am–5.00pm, Monday–Friday (Australian Eastern Standard Time) except national public holidays

Regards

LukeS

DASP

Cariad — Fri, 20 Dec 2019 20:18:10 GMT

How long does it usually take to get superannuation back after making a claim after leaving Australia?

Is it normal for the ATO to NOT send an email to let you know they have received your claim?

Is waiting for over a month without correspondence normal?

Re: Taxation on Student Visa with few months on Working Holiday Visa

KylieS — Thu, 19 Dec 2019 05:20:52 GMT

Hi ,

We have answered a similar question recently check it out.

Thanks

KylieS

Re: From student visa 500 to BVA to partner visa 820

KylieS — Thu, 19 Dec 2019 04:33:27 GMT

Hi ,

Thanks for your patience.

Except for working holiday holiday makers, your visa status does not determine the amount of tax that you pay.

The amount of tax is worked out by whether you are a resident or non-resident. See Individual-income-tax-rates

If you are staying in Australia long term with a partner and you plan live in Australia permanently then this points to you being a resident of Australia.

Although there are no exact rules, see examples-of-residents-and-foreign-residents for some examples of similar situations.

KylieS

Re: Tax income from a WHV to a Partner Visa

KylieS — Wed, 18 Dec 2019 07:05:19 GMT

Hi ,

Check out a response that we have provided in the past on a similar topic, that might be helpful.

KylieS

Re: From student visa 500 to BVA to partner visa 820

KylieS — Tue, 17 Dec 2019 09:43:52 GMT

Hi ,

Let me check on this one for you.

Thanks

KylieS

Re: Abn+working holiday visa

NateH — Tue, 17 Dec 2019 05:56:43 GMT

Hi ,

We have a webpage which has all the information you need for lodging your tax return early.

Let us know if you have any troubles!

Thanks, NateH

Re: Abn+working holiday visa

Phil2 — Mon, 16 Dec 2019 23:53:35 GMT

Hi thanks for that.

I’ve just cancelled my abn , I’m trying to get the tax return forms to pay for my tax before June. I was told that I could do this before leaving the country. What forms should I get and is there a link where I can download them from ? Thank you.

Re: Taxation on Student Visa with few months on Working Holiday Visa

Giovanni97 — Fri, 13 Dec 2019 16:58:29 GMT

Hi, thanks for answering!

So, even this would be a question because i will start on the 20th of January with 1 month as General English + 1 month free at the end of the course (holiday/full time) from the Government, then starting the Cambrdige CAE in middle march for 3 months + 1 month free from the Government again.

Am i going to be under just 1 student visa from middle January till middle July? Because the total will be 6 months of staying in Australia!

I also looked up on the web and found out that i could tick and have the tax-free threshold anyway for the "183 day test". Am I right?

Thank you so much for helping me!

Re: Tax income from a WHV to a Partner Visa

LukeS — Fri, 13 Dec 2019 07:09:02 GMT

Hello @Grazy86,

@SAFRATA and @Taxably have both provided correct information.

“We cannot assume the visa will be granted until it is granted, and we must assess the situation on the facts available at the time it occurs. So if a Bridging Visa is held, it means the only visa we know certain is the previously held visa. Under this reasoning, a taxpayer on a Bridging Visa, who previously held a 417 or 462 subclass visa (Working Holiday Maker) should continue to be taxed as a Working Holiday Maker, in accordance to part 3 and 4 of Schedule 7 of the Income Tax Rates Act 1986.”

“3A Working holiday makers and working holiday taxable income

(1) An individual is a working holiday maker at a particular time if the individual holds at that time:

(a) a Subclass 417 (Working Holiday) visa; or

(b) a Subclass 462 (Work and Holiday) visa; or

(i) the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and

(ii) the Minister administering that Act is still to make a decision in relation to the application; and

(iii) the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).

The key word here are "or", namely subpara (c)(i) "and/or" which means that the subpara (ii) and (iiI) are to be construed in isolation from subpara (i). In conclusion, if you are on 417 or 462 visa, you apply for another visa and you are granted a brdiging visa, you will still be taxed under the 15% on the first $37,000 and then as residents for tax purposes.”

Regards,

Luke S

Re: Abn+working holiday visa

KylieS — Fri, 13 Dec 2019 02:08:49 GMT

Hi ,

Check out the information on cancelling your ABN.

The first $37,000 that you earn is taxed at 15% and the rest at ordinary tax rates.

So it depends on your income for the year.

Thanks

KylieS

Re: Taxation on Student Visa with few months on Working Holiday Visa

macfanboy — Fri, 13 Dec 2019 00:47:41 GMT

Will you be studying for more than 6 months?

Taxation on Student Visa with few months on Working Holiday Visa

Giovanni97 — Thu, 12 Dec 2019 18:20:48 GMT

Hello, i'm Giovanni and on the 20th of November 2019 i finished my first Working Holiday Visa 417.

I would like now to come back to Australia from January and study General English first and then the Cambridge CAE course with a Student Visa until June/July 2020.

What i'm asking is how should I be taxed from now, since i've been taxed from the starting of the financial year 2019 normal 15% until November and then now coming back with a student visa until the end of the financial year.

Will the employer keep anyway the 32,5% of tax every payslip? Will i be able to claim back all my taxes while i was on the student visa or at least part of them?

Hope someone will be able to clarify this doubt.

Thank you

Re: Tax income from a WHV to a Partner Visa

SAFRATA — Wed, 11 Dec 2019 23:47:18 GMT

Thank you for noting this

Re: Tax income from a WHV to a Partner Visa

Taxably — Wed, 11 Dec 2019 23:28:54 GMT

If they are not a tax resident they may be eligible for some tax offsets, but not LITO and LMITO. We still see Zone offsets applies to foreign tax residents as well as small business tax offsets.

Re: Tax income from a WHV to a Partner Visa

SAFRATA — Wed, 11 Dec 2019 23:24:01 GMT

It still appears to be of high importance to assess residency vs non-residency for WHV holders, making a process of preparing a simple return a lengthy and costly excercise for the client, and us tax pracitioners.

Re: Tax income from a WHV to a Partner Visa

SAFRATA — Wed, 11 Dec 2019 23:21:30 GMT

Hi,

thanks for letting me know. It was not an edit but part of my message did not load. I believe I wanted to say that while WHV holders are still taxed under the 15% tax on the first $37,000 the WHV legislation does not deny the tax offsets available to residents. Contrary to the intentions behind the legislation, one of which appears to be simplification of the assessment of WHV holder returns (to the ATO), the outcome is quite the opposite. Not only confusion arose around if you are "already" taxed under WHV legislation (when applying for WHV visa from another visa), but also if you are "still" taxed under WHV legislation when transitionoing from WHV to another visa.

Re: Tax income from a WHV to a Partner Visa

macfanboy — Wed, 11 Dec 2019 23:13:42 GMT

, ,

What did you edit?

It looks as if you removed any mention of them being able to claim certain tax offsets because they are a resident...

Re: 183 days test

macfanboy — Wed, 11 Dec 2019 23:04:00 GMT

Re: 183 days test

macfanboy — Thu, 12 Dec 2019 00:18:21 GMT

If you look at Tax Ruling 98/17 Example 11 paragraph 111 it states:

" Even though he is physically present in Australia for only two months of the 1998 income year, he intends to live in Australia to fulfil his contract...". So he is considered a Resident.

English Double tax agreement with France on the ATO Legal Database

Re: Tax income from a WHV to a Partner Visa

Taxably — Wed, 11 Dec 2019 22:43:29 GMT

Yes, the way ATO processes backpacker tax is another matter. ATO has automated default processing in place, and as a tax practitioner we believe there are triggers in the backpacker tax return that commonly cause a foreign tax resident assessment.

I’ve been informed by a number of ATO officers how they’ve been trained to assess tax residency, and they merely assess it on Department of Home Affairs data matching of visa and date of entry/departure into or out of Australia. They cannot be reasoned with over the phone when directed to TR 98/17 or s 6(1) of ITAA 1936, and force us to formally object the matter. Needless to say this unnecessarily causes a lot of extra work.

Many backpackers are also assessed as a normal foreign tax resident and taxed 32.5% when the return is clearly marked type H income and has the A4 Adjustment. Such a simple error has appeared to be a time consuming a dreadful task to fix, with ongoing delays on ATO side, repeatedly having to escalate the matter, and then receiving an unchanged NOAA once finally assessed.

I guess there is still a lot of room for improvement on assessing this backpacker tax.

Re: Tax income from a WHV to a Partner Visa

macfanboy — Wed, 11 Dec 2019 21:10:19 GMT

Very interesting interpretation, I like it.

Re: Tax income from a WHV to a Partner Visa

SAFRATA — Wed, 11 Dec 2019 13:00:36 GMT

...in the form of tax offsets available if certain income levels are present

Re: Tax income from a WHV to a Partner Visa

SAFRATA — Wed, 11 Dec 2019 12:59:17 GMT

This must be the only correct interpretation. I have a nunmber of clients I explain this to, then they they go to the ATO (in person or call) and the staff assist them to lodge to the contrary.

The words of the Income Tax Rates Act 1986 No. 107, 1986 speak for themselves:

3A Working holiday makers and working holiday taxable income

(1) An individual is a working holiday maker at a particular time if the individual holds at that time:

(a) a Subclass 417 (Working Holiday) visa; or

(b) a Subclass 462 (Work and Holiday) visa; or

(c) a bridging visa permitting the individual to work in Australia if:

(i) the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and

(ii) the Minister administering that Act is still to make a decision in relation to the application; and

(iii) the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).

It also follows, the tax residency here is a separate issue. While the tax residency does not impact on the rate of tax of 15% on the first 37,000, it can bring about some benefits in the form of

Tax income from a WHV to a Partner Visa

SAFRATA — Wed, 11 Dec 2019 22:31:41 GMT

This must be the only correct interpretation. I have a nunmber of clients I explain this to, then they they go to the ATO (in person or call) and the staff assist them to lodge to the contrary.

The words of the Income Tax Rates Act 1986 No. 107, 1986 speak for themselves:

3A Working holiday makers and working holiday taxable income

(1) An individual is a working holiday maker at a particular time if the individual holds at that time:

(a) a Subclass 417 (Working Holiday) visa; or

(b) a Subclass 462 (Work and Holiday) visa; or

(c) a bridging visa permitting the individual to work in Australia if:

(i) the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and

(ii) the Minister administering that Act is still to make a decision in relation to the application; and

(iii) the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).

It also follows, the tax residency here is a separate issue. While the tax residency does not impact on the rate of tax of 15% on the first 37,000, it can bring about some benefits in the form of **invalid HTML removed**

Re: 183 days test

MeliFrance — Wed, 11 Dec 2019 08:41:04 GMT

Thank you very much for your message. I had already read the PDF file and taken the test, however sometimes the wording goes "are your planning to stay over 6 months in Australia" and sometimes it says "183 days during the income year", which makes a big difference in our case, as we would not be taxed the same if we pay in Australia or in France.

For instance in this page, it says "Your presence in Australia need not be continuous for the purposes of the 183 day test. All the days you are physically present in Australia during the income year will be counted. This includes the day of your arrival and departure. It is important to note that the 183 day test applies in relation to the year of income, not the calendar year."

But in the PDF it only talks about "over half a year" and so is the wording of the residency test": "The 183 day test You will be a resident under this test if you spend over half the year in Australia, unless it is established that your ‘usual place of abode’ is outside Australia and you have no intention of taking up residence here".

This is very confusing for us.

So to go forth on our search and understanding, would you be able to help on those two points below :

- Do you confirm that income year in Australia means July 1st - June 30th?

- I am looking for the english version of the tax agreement. Would you have any idea of where I could find it? I indeed think the wording in English may be clearer than in French (the whole thing is tied around Article 14 - 2) - a.

Thank you very much!

Re: 183 days test

macfanboy — Tue, 10 Dec 2019 21:29:57 GMT

First I would complete the "work out your residency" test.

Then have a look at this

By the sounds of it I believe that you would qualify.

Double taxation agreement basically means that you will not have to pay tax twice.

They work out your tax obligations in the country that you are deemed resident and that's how much you pay.

If you paid any extra, then it is adjusted.

183 days test

MeliFrance — Tue, 10 Dec 2019 14:26:14 GMT

Hello everyone,

My partner is sent by his French company for a 7 months project within an office they have in Australia. He remains an employee and is paid by his french company in France while he will be working in Australia. His salary will not be supported by the Australian offices as he will keep on working for the French team. He has been granted a Temporary Skill Shortage Subclass 482 (and so have I - as family). We will arrive in Australia around January 20 and we should go back to France (for good) mid August.

We are wondering how the 183 days test applies in our case as the income year in Australia starts in July.

It is not very clear for us as we will stay for about 220 days that are split over 2 different income years. Where are we supposed to pay taxes in such case? We have read the France-Australia Tax Agreement but the wording used is unclear in the French version.

Any help very welcome!! Thanx!

Re: Bridging A Visa Tax

macfanboy — Tue, 10 Dec 2019 04:12:02 GMT

If they continue to tax you as an Australian Resident and that is wrong you will end up with a tax bill.

I don't work for the ATO, but have seen and answered this question multiple times on this forum and at work.

The link I provided shows you that.

If you want you could ask for a private ruling from the ATO to be 100% sure.

They are free.

Re: Bridging A Visa Tax

NicolleS — Tue, 10 Dec 2019 02:56:28 GMT

I pushed back on it and they said that they have double checked with 'Australia Wide Taxation and Payroll Training' and confirmed I'm an australian resident for tax purposes.

ATO has more authority over that surely? Just concerning that they're getting it wrong and I'm having to push back a fair bit to be taxed fairly and correctly.

Re: Bridging A Visa Tax

macfanboy — Tue, 10 Dec 2019 02:28:03 GMT

Payroll is wrong.

Until you have a new visa you are deemed to be on the previous one whilst on a 'bridging visa'

https://www.ato.gov.au/Rates/Schedule-15---Tax-table-for-working-holiday-makers/

Bridging A Visa Tax

NicolleS — Tue, 10 Dec 2019 02:20:55 GMT

I was on a WHV 417 which expired 22/11/2019. In the meantime I am on a bridging A visa while my application for TSS 482 visa is being processed. My understanding was that I would have the same work limitations and tax rates as my previous visa so 15% until 37,000 AUD.

My Payroll for my company say that my tax rate has changed from the 23/11/2019 (expiration of my working holiday visa and start of my bridging visa) and I am now an australian resident for tax purposes and jumped up to 32.5%. I have not reached the 37,000 AUD limit yet and I need some clarity on what tax rate I should be on as the process for this application could take a couple of months.

Thanks!

Re: Medical levy exemption request reject

ptp — Mon, 09 Dec 2019 05:05:00 GMT

Thanks for help

Re: Medical levy exemption request reject

macfanboy — Mon, 09 Dec 2019 01:08:02 GMT

Sorry I can't really help.

It looks like you were eligible for medicare and didn't apply for it, therefore you need to pay the medicare levy.

If you are no longer required to have the overseas health cover then cancel it or find a cheaper one that suits you.

Re: Medical levy exemption request reject

ptp — Mon, 09 Dec 2019 00:50:13 GMT

We did in Centrelink submitted all necessary documentation including passport visa copy etc. got the rejection letter in mail. Call department of human service explain situation been told you are under reciprocal health agreements so why don’t you applied your Medicare card when you arrived this county (2016) I said we were under immigration boundary must have private health insurance as international student they said can’t help much go to Centrelink and claim back dated your claim show them this rejection letter they will help, after called department of home affairs been told you maintain your own private health insurance as per your previous and current visa conditions I paid almost $10000 dollars for private health insurance before arrive in this country and many more during this visa period now pls explain what can I do. Many thanks

Re: Medical levy exemption request reject

ptp — Mon, 09 Dec 2019 00:30:49 GMT

Hi,

My Medicare card eligibility month September 2019 till this month we were on immigration status (says you must maintain your own private health insurance before you arrive in this country) also we did pay lots of money in the hospital during our temporary visa period at that point we been told you must pay money to hospital you reciprocal health agreement won’t cover its cover only if you are visiting this country, so please explain many thanks

Re: Medical levy exemption request reject

macfanboy — Mon, 09 Dec 2019 00:30:31 GMT

Yes.

Why was the medicare exemption rejected?

If you did not have access to Australia's public Medicare system for medical or hospital expenses, then you should be exempt.

Did you download and fill in Medicare Entitlement Statement?

Re: Medical levy exemption request reject

ptp — Mon, 09 Dec 2019 00:18:56 GMT

Hi,
Thanks for reply

Please explain temporary visa holder must pay Medical levy 2% or not?

Re: Medical levy exemption request reject

macfanboy — Mon, 09 Dec 2019 00:14:34 GMT

Like I said it doesn't matter if you decide to use medicare or not.

Not sure why you wouldn't when you can.

Re: Medical levy exemption request reject

ptp — Mon, 09 Dec 2019 00:01:49 GMT

Hi,

Thanks for reply

But we never claim or use Medicare at all and bear all my hospital and doctor expanses.

Re: Medical levy exemption request reject

macfanboy — Sun, 08 Dec 2019 23:31:35 GMT

Doesn't make any difference, it was a requirement for the visa.

Re: Medical levy exemption request reject

ptp — Sun, 08 Dec 2019 23:14:07 GMT

Hi,
Thanks for reply
I know that everyone need to pay for Medicare levy who are permanent residence or citizen in Australia, but what about some one on student visa or any other temporary visa holder? Whose visa condition clearly says must maintain private health insurance only many thanks

Re: Medical levy exemption request reject

macfanboy — Sun, 08 Dec 2019 23:01:46 GMT

You do realise that everybody who pays for private health insurance also has to pay for medicare, whether they use it or not?

Medical levy exemption request reject

ptp — Sun, 08 Dec 2019 14:45:55 GMT

Hi,

My medical entitlement statement form was rejected

We enter in Australia on Student visa (sub class 573) with conditon - 8501 which means that you must maintain
adequate arrangements for health insurance (generally Overseas Student Health Cover) while you are in Australia on this visa. which we did from our home country, currently on 485 graduate visa and maintain OVHC (Overseas visitor Health cover) this year september we applied permanent residency visa and eligible to apply and get MEDICARE CARD from Centre link. when filing our tax return year 2018-19 needed medical entitlement statement to claim we weren't eligible for Medicare in 2018-19 financial year but medical entitlement statement form was rejected.

we are UK citizen enter in Australia on student visa with private medical health insurance and didn't use Medicare service at all till end of 2018-19 financial year.

From student visa 500 to BVA to partner visa 820

Tatiana — Sun, 08 Dec 2019 09:55:24 GMT

I would like to know the tax rate while I'm holding a BVA from student visa 500 to partner visa 820.

Re: Abn+working holiday visa

Phil2 — Thu, 05 Dec 2019 02:15:12 GMT

Hi guys just a little bit of a follow up.

I have now stopped working with my ABN. I am about to start two jobs , working for someone/company.

What should I do with my ABN? Shall I cancel it? Is it possible to do that and then pay the taxes in June? Or should I keep it even tho I’m not self employed anymore?does it matter to have it and not use it?

If my second job is not registered as working holiday maker am I gonna be taxed at 37% on that one?

Ps. I ended up getting to the bottom of my “6month question” relating to the visa and work. it might be helpful for someone else. On a working holiday visa , regardless if you are employed by someone or self employed(abn) you can only work/provide services for that company/person for 6 months. There’s a few exceptions( if they have another business in a different location etc) but that’s the bottom line.

Thank you 😊

Re: Tax residency

macfanboy — Tue, 03 Dec 2019 01:09:14 GMT

Even on a "Bridging Visa" you will be still be taxed as a working holiday maker.

https://www.ato.gov.au/rates/schedule-15---tax-table-for-working-holiday-makers/

If your residency status changes and goes from WHM to a resident of Australia for tax purposes, you'll need to submit a Withholding declaration form to your employer to notify them of the changed in your residency status.

Once you provide a withholding declaration form to your employer or payroll area, they will withhold tax at the required rate.

Tax residency

Pauline65 — Tue, 03 Dec 2019 00:36:35 GMT

A working holiday maker (417 visa), is now in a defacto relationship with an Australian citizen. At this stage the employee has not applied for a bridging visa although intends to do this next year sometime. Should the employee continue to be taxed as a working holiday maker until such time as a bridging visa is applied for? Is the emplyee able to complete a new TFN form now to update tax status to Australian resident for tax purposes even though the working holiday maker (visa 417) is still active?

Re: Working for Overseas Company

NicolaC — Mon, 25 Nov 2019 04:19:36 GMT

If you're an Australian resident for tax purposes, you'll need to declare all income you earn both in Australia and internationally on your Australian tax return (even if you already paid tax on it in the UK). However, you can claim a foreign income tax offset to provide relief from the double taxation.

For more specific legal information on what you can and can't do under your partner visa, you will need to contact the Department of Home Affairs.

Thanks

NicolaC

Re: NZ Citizens on a 444 special visa - selling primary home in NZ, liability for capital gains tax

KylieS — Mon, 25 Nov 2019 01:38:08 GMT

Hi ,

If you do not own another property that you are using as your main residence you can claim the NZ property as your main residence for up to 6 years. When you sell you main residence there is no Capital gains tax. Check out the main residence exemption.

Thanks

KylieS

Re: Working Holiday Maker - not lodging a tax return

KylieS — Wed, 20 Nov 2019 06:46:30 GMT

Hi ,

Yes, the client would end up with an amount payable as the employer reports to us what the employee has earnt and what tax is paid.

Thanks

KylieS

Working for Overseas Company

LucyVictoria — Tue, 19 Nov 2019 07:36:47 GMT

Hi,

I am an UK resident here in NSW on a partner visa, my English company would like me to continue working for them whilst I live in Australia. What do I do to ensure I follow all legal requirements?

Re: Do I need to pay tax if I receive financial support from defacto partner?

AmandaP — Mon, 18 Nov 2019 06:06:41 GMT

Many thanks for your quick response, much appreciated

Re: Do I need to pay tax if I receive financial support from defacto partner?

macfanboy — Mon, 18 Nov 2019 06:06:01 GMT

1. You will be determined to be an Australian Resident for tax purposes from the moment you arrived.

All of your worldwide income must be declared.

Any Income that was taxed in your old place of residence may qualify for a Foreign Tax Offset if they have a Double Taxation Agreement with australia.

So yes I would obtain a Tax File Number and determine whether I need to lodge a Tax Return

2. No, you don't need to declare any assistance that your partner is providing you with unless it is income.