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482 (TSS) visa tax rates

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Hi

 

I've spent the first half of the year on a working holiday visa (417) and the 2nd half on a 482 (TSS) visa. I've just lodged my tax return and I've been considered as a foreign resident for tax purposes and had to pay 32.5% on my whole income for the year. This is dispite working for half the year on the 15% 'backpacker' tax and being told I should be considered as an australian resident for tax purposes. Does anyone know if the 482 visa is considered a resident for tax purposes? 

 

Cheers

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Taxicorn

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@sebhind 

Generally speaking, there are two categories a 482 visa holder may fit into: Australian residents for tax purposes or temporary residents. There are four tests to determine whether an individual is an Australian tax resident as shown below:

  1. The resides test: if you reside in Australia according to the ordinary meaning of ‘reside’, that is ‘to dwell permanently or for a considerable time, to have a settled or usual abode, and to live in a particular place’. Affecting factors include physical presence, intention and purpose, family and employment ties, maintenance and location of assets, social and living arrangements.
  2. The domicile test: a place you consider to be your permanent home. This could be by origin (where you were born) or by choice.
  3. The 183-day test: when over half of the year is spent in Australia.
  4.  The commonwealth superannuation fund test.
  5. Other tests to determine residency.

Satisfaction to any of the tests above automatically makes one an Australia tax resident, and thus should abide by the Australian taxation law for the income they’ve earned, whether here in Australia or not. Australian residents are taxed on worldwide income. Hence on a 482 Visa tax return, as a resident if you did earn any foreign income, you would need to declare and pay tax on this income too. However, the tax you paid overseas could be offset against your tax payable in Australia if there is a Dual tax agreement with the country from where you earned the income

1 REPLY 1

Most helpful response

Taxicorn

Replies 0

@sebhind 

Generally speaking, there are two categories a 482 visa holder may fit into: Australian residents for tax purposes or temporary residents. There are four tests to determine whether an individual is an Australian tax resident as shown below:

  1. The resides test: if you reside in Australia according to the ordinary meaning of ‘reside’, that is ‘to dwell permanently or for a considerable time, to have a settled or usual abode, and to live in a particular place’. Affecting factors include physical presence, intention and purpose, family and employment ties, maintenance and location of assets, social and living arrangements.
  2. The domicile test: a place you consider to be your permanent home. This could be by origin (where you were born) or by choice.
  3. The 183-day test: when over half of the year is spent in Australia.
  4.  The commonwealth superannuation fund test.
  5. Other tests to determine residency.

Satisfaction to any of the tests above automatically makes one an Australia tax resident, and thus should abide by the Australian taxation law for the income they’ve earned, whether here in Australia or not. Australian residents are taxed on worldwide income. Hence on a 482 Visa tax return, as a resident if you did earn any foreign income, you would need to declare and pay tax on this income too. However, the tax you paid overseas could be offset against your tax payable in Australia if there is a Dual tax agreement with the country from where you earned the income