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Covid 408 visa tax percentage

Newbie

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Replies 7

Hello. I came to Australia as a working holiday one year and half ago. Due to corona virus, I applied covid 19 408 visa. I’m wondering how much is a tax rate? Now i am working at cristal sector(packing vegetables shed) and employer charge me 15%. 

Thank you 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 6

Hi @Saki0320,

 

Has the new visa 408 been approved yet? If not, then that is why your employer is still withholding 15% because you are theoretically still on your WHM visa.

 

If and when your 408 visa is approved, you will then need to assess if your classed as an Australian resident for tax purposes or if your still classed as a Foreign or temporary resident.
To work this out please take use of our Are you a resident calculator.

 

If you determine you’re now a resident for tax purposes, you will now have a tax-free threshold on the first $18,200 you earn.

 

If you determine you’re a foreign resident, you will pay 32.5cents for each $1 you earn between $0 - $120,000.

 

You can find the above information on our Individual income tax rates page.

 

When you started employment on your WHM visa you would have provided your employer with a TFN declaration that states you are a WHM.
Once your WHM visa changes to the new 408 visa, you will need to change that information by providing your employer with a Withholding declaration to have your residency status updated which will assist your employer to withhold the right amount of tax for you going forward.

 

I hope this helps Smiley Happy

7 REPLIES 7

Most helpful response

Former Community Support

Replies 6

Hi @Saki0320,

 

Has the new visa 408 been approved yet? If not, then that is why your employer is still withholding 15% because you are theoretically still on your WHM visa.

 

If and when your 408 visa is approved, you will then need to assess if your classed as an Australian resident for tax purposes or if your still classed as a Foreign or temporary resident.
To work this out please take use of our Are you a resident calculator.

 

If you determine you’re now a resident for tax purposes, you will now have a tax-free threshold on the first $18,200 you earn.

 

If you determine you’re a foreign resident, you will pay 32.5cents for each $1 you earn between $0 - $120,000.

 

You can find the above information on our Individual income tax rates page.

 

When you started employment on your WHM visa you would have provided your employer with a TFN declaration that states you are a WHM.
Once your WHM visa changes to the new 408 visa, you will need to change that information by providing your employer with a Withholding declaration to have your residency status updated which will assist your employer to withhold the right amount of tax for you going forward.

 

I hope this helps Smiley Happy

Newbie

Replies 0

Hello @CasATO 

Thank you very much for responding. It really helps me a lot. I have another question. I used resident calculator, and resultis is “ Resident of Australia for taxation purposes.” Which mean ATO will consider me as a resident? Or still need to proof that I passed resident test ? 

Thank you.

Newbie

Replies 4

 

Former Community Support

Replies 3

Hi @Saki0320

 

Yes the ATO will consider you a resident for tax purposes, meaning you will need to complete a tax return. There is no need to show proof of resident test.

 

All the best!

Newbie

Replies 2

Hello @YianaATO 

 

I am really appreciated that your quick response!!

So When I complete tax return 2021, if I am determine as a resident for tax purposes, i have a tax-free threshold on the first $18,200 I earn. After $18.200 I need to pay 32.5cents for each $.

Is it correct?  

Thank you. 

 

ATO Community Support

Replies 1

Hi @Saki0320,

 

Working Holiday Maker income earned under a working holiday maker visa will always be taxed at working holiday maker rates (15% for the first $37,000), then taxed at ordinary rates for your residency status.  This is the case even if your residency status changes and you no longer earn income under the working holiday maker visa.

 

Any income earned otherwise will be taxed depending on your residency status, including the tax-free threshold.

 

Our individual income tax rate page shows the most up-to-date rates and thresholds.

 

Hope this helps Smiley Happy

Newbie

Replies 0

Hello @BlakeATO 

 

I am really appreciated that your response!!

Unfortunately  I’m not working holiday visa anymore . I’m on the covid 408 visa. Earlier of these conversations, ATO explained me that if I’m considered as a resident for tax purpose, i have a tax-free threshold on the first $18,200 I earn. So I want to make sure, if I am determined as a residet, After $18.200 I need to pay 32.5cents for each $.

Because I tried resident calculator , and answer was resident.

 

Thank you