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stevenw534(Newbie)Newbie
7 Feb 2024

I have recently moved to Australia on a Working Holiday Visa (Subclass 417) and I am working at an employer that is not a WHM Employer.


I assumed I would be on 15% (for the first $45,000 earnt) but unfortunately, have been taxed at 32.5% as a Non-resident.


Firstly, if my company retrospectively becomes a WHM employer, will this revert to 15%?


Secondly, I am soon to be sponsored by my company and transition to a Sponsorship Visa (I assume 457 / 482). Will my tax be back dated so I am then evaluated by the standard thresholds ($18,200 allowance and 19% from $18,200 - $45,000)?


What is my best option here? 32.5% tax is quite significant.


What are the implications to consider when I do my Tax return this year?

14,807 views
3 replies
14,807 views
3 replies

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Most helpful reply

AnitaATO(Community Support)Community Support
11 Feb 2024

Hey @stevenw534,


That's correct, if the employer isn't registered as a working holiday maker, then you'll be taxed as a non-resident. If they were to register with us, then yes, the tax rate would change to 15%.


Again, your tax rate will change when you change to being here on a sponsorship visa. It won't be backdated but it will be worked out when you lodge your tax return as you'll be able to claim part year tax free threshold which is from when you become an Australian resident for tax purposes. So, when the sponsorship visa came into effect.


We've had a similar question to this asked on our forum before and we've provided a great breakdown on how you'll report the income on your tax return. You may like to read our response here.

All replies

Most helpful reply

AnitaATO(Community Support)Community Support
11 Feb 2024

Hey @stevenw534,


That's correct, if the employer isn't registered as a working holiday maker, then you'll be taxed as a non-resident. If they were to register with us, then yes, the tax rate would change to 15%.


Again, your tax rate will change when you change to being here on a sponsorship visa. It won't be backdated but it will be worked out when you lodge your tax return as you'll be able to claim part year tax free threshold which is from when you become an Australian resident for tax purposes. So, when the sponsorship visa came into effect.


We've had a similar question to this asked on our forum before and we've provided a great breakdown on how you'll report the income on your tax return. You may like to read our response here.

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What tax rate will I be on if I transition from a WHV (Subclass 417) to Sponsored (457/482) Visa? | ATO Community