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ABN and tax rate for non residents + Superannuation

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Hello,

 

I'm here in a WHV 417 it's my first year and I'll be here for two so I'll be here next July.

If I understand I'm a non resident for the ATO with this visa.

I just found a job where my employer asked me to create an ABN. Does he have to register to sub contract me as I am in a WHV ?

If I understand well, my tax rate will be 32.5% no matter how much I make and there is not a thresold ?

I just wanna be sure for how much i'll need to save for next July and if it is a third of what i make or if there are any ways to reduce the rate.

I'll be working for 3 months for about 1 000$AUD / week so 12 000 $AUD total wich make me save about 3 900 $ for taxe.

Is all that correct ?

 

For deductions I know I have to keep receipts to deduce the amount of my total income of 12 000$? And then I applied the rate percentage ?

What is deductible ? If I take public transport does it work ?

And for exemple I make my own food for lunch.

Do I keep receipts of grocery store when I shop even If there are other things in the receipt ?

or do I have to make diffrents receipts for food and for the rest ? Do I have to pay all by card ?

 

I know I have a lots of question but I'm a bit lost and want to do the right thing and things rights.

 

 

I also want to understand what is superannuation ? Is it something you earn only when you work under your TFN as I'll probably do later ?

I opened a bank account but i don't see an other saving account do I have to go to the bank to open another account for super ?

 

I'm counting on you guys hope someone can help me in this jungleMan Happy

 

Cheers !

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TaxTime Support

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Hi @JimmyBENHAMOU

 

Welcome to your first post on our community.

 

Working for an employer, the employer must register as a Working Holiday Maker (WHM) Employer (simply done) at which point this will allow him to withhold at 15% only up to $37,000. If the Employer did not register with us then he is obliged to withhold at 32.5% and this then would require you to lodge a return at Tax Time to adjust any payments you made and be eligible for the 15% tax rate. The employer would also be required to pay Super in addition to your wage.

 

Now as a sole trader working under an ABN you are not required to pay Super for yourself but when you lodge at Tax Time you would need to clearly indicate you are a WHM which we would then verify with your visa so you are only taxed at the 15% rate. However until that time you would be advised to withhold for yourself to a bank account at 32.5% or alternatively you can choose to voluntarily enter the PAYGI system where for the first year you would nominate the amount you need to set aside quarterly ie:32.5% of earnings. After you lodge your tax return the first time we would then estimate based on past earning what you need to put aside for the year ahead which is adjustable by you.

For claiming any  deductions as a small business sole trader see the included link.

 

I hope this puts you in the right direction.

Kind Regards
MarkA

1 REPLY 1

Best answer

TaxTime Support

Replies 0

Hi @JimmyBENHAMOU

 

Welcome to your first post on our community.

 

Working for an employer, the employer must register as a Working Holiday Maker (WHM) Employer (simply done) at which point this will allow him to withhold at 15% only up to $37,000. If the Employer did not register with us then he is obliged to withhold at 32.5% and this then would require you to lodge a return at Tax Time to adjust any payments you made and be eligible for the 15% tax rate. The employer would also be required to pay Super in addition to your wage.

 

Now as a sole trader working under an ABN you are not required to pay Super for yourself but when you lodge at Tax Time you would need to clearly indicate you are a WHM which we would then verify with your visa so you are only taxed at the 15% rate. However until that time you would be advised to withhold for yourself to a bank account at 32.5% or alternatively you can choose to voluntarily enter the PAYGI system where for the first year you would nominate the amount you need to set aside quarterly ie:32.5% of earnings. After you lodge your tax return the first time we would then estimate based on past earning what you need to put aside for the year ahead which is adjustable by you.

For claiming any  deductions as a small business sole trader see the included link.

 

I hope this puts you in the right direction.

Kind Regards
MarkA

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