can a working holiday maker in australia go home permanently eg. The UK and still work for an Australian company as a payg employee if their visa is still valid
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Hi @daniKelly1972,
No, a working holiday maker can't work remotely from the UK for an Australian company as a PAYG employee once they've left Australia permanently, even if their visa is still valid. Working holiday visas (subclass 417 or 462) permit work while the person is physically in Australia. Once they've left permanently, the visa conditions no longer apply to employment arrangements.
If the person has returned to the UK permanently, they'd generally be a foreign resident for tax purposes. The work would be performed outside Australia, which changes the tax and employment obligations significantly. The Australian employer would need to consider whether Australian PAYG withholding obligations apply, which depends on where the work is physically performed and the employee's residency status.
The Australia-UK tax treaty sets out which country has taxing rights over employment income. Generally, if a person is working from the UK for an Australian company, the income may be taxable in the UK rather than Australia. This affects whether the Australian employer needs to withhold tax.
The Australian company needs to check if they have PAYG withholding obligations for an employee working overseas. They should also consider whether the working holiday maker visa conditions permit this arrangement, as the visa is designed for temporary work while visiting Australia.
We do have a handy article about what remote work means for you but as a working holiday maker, you should check your visa conditions using the Visa Entitlement Verification Online service with the department of Home Affairs.
Your employer may also need tailored guidance about their withholding and reporting obligations for overseas workers.