I’m in Australia on a working holiday visa (417), since February 2024. I have applied for the 491 visa but it has not been processed. I earn income from employment in Australia. I also have income from a rental property that I own in the U.K.
ordinarily, working holiday makers do not pay tax on their overseas income or pay the Medicare levy. but I am from the uk so I understand that there are slightly different tax rules around WHMs. My interpretation of the ATO guidance is that I will be assessed on the basis of whatever the lower amount of these two is : 1) as if I were an Australian national and therefore receiving a tax free threshold and also taxed on my overseas in come, or 2) as a working holiday maker, so no tax free threshold and higher rates, but not taxed on my overseas income.
the lower of the 2 of these for me is number 2. But my tax agent is saying they have to submit the return as if number 1 and then it’s up to ATO to decide how they want to assess me. Noting I can’t provide anything with my tax return to offer explanation
how will I be assessed? Why can’t I leave off my foreign income? How will I know what I will be taxed? The difference in the 2 scenarios above is about $4,000
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