I am moving to Australia with work starting 05/08/2024 with my firm. I have previously been applying under a 408 exchange visa. Due to delays in this my firm is suggesting I apply for a 417 working holiday visa until the 408 VISA is granted, this would likely be 1/2 months on 417 VISA and then the remainder of the year on a 408 visa. I want to understand the tax implications of this especially relating to the tax free threshold.
These are my forecasted earnings for the July 2024 - June 2025 tax year:
Annual salary gross = AUD 87,083
Please see my calculations below in the different scenarios.
Under a 417 visa for the full tax year I believe my tax liability would be:
45,000 * 0.15 = 6,750
42,083 * 0.3 = 12,625
Total 19,375
Under a 408 visa for the full tax year it would be:
16,683 * 0 = 0 (tax free allowance prorated to 11/12)
28,317 * 0.16 = 4,531
42,083 * 0.3 = 12,625
Total 17,156
Under 1 month 417 and 10 months 408 (only working August to June) it would be:
417 earnings
1 Month 7,916 * 0.15 = 1,187
408 Earnings
11 months
(16,683-7,916)*0 = 0 (new tax free allowance = 8,767)
36,233 * 0.16 = 5,797
42,083 * 0.3 = 12,625
Total = 19,609
Under 2 month 417 and 9 months 408 (only working August to June) it would be:
417 earnings
2 Month 15,832 * 0.15 = 2,375
408 Earnings
9 months
(16,683-15,832)*0 = 0 (new tax free allowance = 851)
44,149* 0.16 = 7,064
42,083 * 0.3 = 12,625
Total = 22,064
Cost Implications;
1 months on 417 vs full time on 408 = 19,609 - 17,156 = 2,453
2 months on 417 vs full time on 408 = 22,064 - 17,156 = 4,908
Please can you advise if my understanding of the tax treatment is correct and if the cost implications I have drafted up are correct.
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