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Re: 416 Visas

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I have a new client who has been in Australia for 18 months on the 416 visa which finished in August 2018. He was then given a bridging visa. When completing the 2019 tax return is he still treated as being on a working holiday and taxed at that rate?

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Hi @STEVEm1,

 

Thanks for your question!

 

If he entered the country on a working holiday maker visa, but had always intended to permanently move to Australia, then he may be considered a resident for tax purposes from the moment he entered the country.  Regardless of his visa status, he should work out his residency status for tax purposes.

 

If he is no longer on a working holiday maker visa, he will not be eligible for the working holiday maker tax rates. So from the date he ceased being on a WHM, he will either be taxed as a resident or a foreign resident for tax purposes, depending on his circumstances.

 

Hope this helps,

 

Rachael B.

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Best answer

ATO Certified

Community Support

Replies 0

Hi @STEVEm1,

 

Thanks for your question!

 

If he entered the country on a working holiday maker visa, but had always intended to permanently move to Australia, then he may be considered a resident for tax purposes from the moment he entered the country.  Regardless of his visa status, he should work out his residency status for tax purposes.

 

If he is no longer on a working holiday maker visa, he will not be eligible for the working holiday maker tax rates. So from the date he ceased being on a WHM, he will either be taxed as a resident or a foreign resident for tax purposes, depending on his circumstances.

 

Hope this helps,

 

Rachael B.