I have a client with an employee from Ireland that has transitioned from the WHM 417 VISA to the Training 407 VISA. Does anyone know the tax rates? He advised me he is a resident for tax purposes.
419 views
419 views1 replies
1 replies
419 views
1 replies
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Hiya @johnno84 ๐
You ask that as if the ATO has a tax table for each class of visa ๐
As you know, the tax rates employers must apply are based on the information provided by the employee in the TFN Declaration and the Withholding Declaration (sometimes the Medicare Levy Variation). It cannot be verbal "advice" from the employee: they must complete the forms.
Key questions for the employee to answer determine the rate of tax:
- Tax Residency - they declare their tax residency, hopefully, after using the ATO tools available
- Tax-free threshold, that is only available to Australian tax residents
- STSL - if they have a loan that must be compulsorily repaid when their income crosses the threshold
- Tax Offsets - if they claim one of the permissible offsets
With this information, together with some knowledge of their profession/work-pattern, you select the appropriate tax table that would apply for their circumstances (Regular, Payee or industry specific tax tables).
If they are a foreign tax resident, you are required to withhold at the foreign resident tax rates. Each tax table explains the scope and coverage of who to apply the tax tables to.
These should correspond with options available in the payroll product to withhold the appropriate amount of tax. Each payroll product represents them differently. If you are unsure, contact the payroll product provider.
Deanne
All replies
Hiya @johnno84 ๐
You ask that as if the ATO has a tax table for each class of visa ๐
As you know, the tax rates employers must apply are based on the information provided by the employee in the TFN Declaration and the Withholding Declaration (sometimes the Medicare Levy Variation). It cannot be verbal "advice" from the employee: they must complete the forms.
Key questions for the employee to answer determine the rate of tax:
- Tax Residency - they declare their tax residency, hopefully, after using the ATO tools available
- Tax-free threshold, that is only available to Australian tax residents
- STSL - if they have a loan that must be compulsorily repaid when their income crosses the threshold
- Tax Offsets - if they claim one of the permissible offsets
With this information, together with some knowledge of their profession/work-pattern, you select the appropriate tax table that would apply for their circumstances (Regular, Payee or industry specific tax tables).
If they are a foreign tax resident, you are required to withhold at the foreign resident tax rates. Each tax table explains the scope and coverage of who to apply the tax tables to.
These should correspond with options available in the payroll product to withhold the appropriate amount of tax. Each payroll product represents them differently. If you are unsure, contact the payroll product provider.
Deanne
Featured articles
22 Apr 2024 ยท 6 min read time
15 Apr 2026 ยท 5 min read time
15 Apr 2026 ยท 4 min read time