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Tax during covid visa 408 for resident

Newbie

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Replies 3

Good afternoon,

 

I was on a WHV from the 1 ft of July 2020 to the 25 th of November 2020. But Since the 26 of November, I am on a covid visa 408. I have been in Australia since September 2018 and I lived in the same place since June 2020. So, according to your calculator and some information, I am a resident for taxes. Can you please confirm me, that I will be :

 

0 to 18200 : tax free

18200 to 45000 : 19 % tax

 

Moreover, about the limit of the 45000, do I need to count from the beginning of the financial year, or once my covid visa started ?

 

T hanks in advance for your answer

Kind regards

 

Morgane 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 2

Hello @Morganeb

 

You would only be eligible for the tax free threshold for the period of the year you were an Australian resident for tax purposes. You will need to include the date you became a foreign resident on your tax return and will be taxed as a foreign resident from that date onwards.

 

Your visa type isn't necessarily what determines your residency status for tax purposes as there are multiple factor involved. Assuming you ceased to be an Australian resident from 26th November, you will be taxed as follows:

 

Your income from 1st July 2020 - 25th November 2020 would be taxed using the resident tax rates.

 

Your income from 26th November 2020 - 30th June 2021 would be taxed using the foreign tax rates.

 

Hope this makes sense Smiley Happy

 

Regards,

 

Tony

 

 

 

 

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hello @Morganeb

 

You would only be eligible for the tax free threshold for the period of the year you were an Australian resident for tax purposes. You will need to include the date you became a foreign resident on your tax return and will be taxed as a foreign resident from that date onwards.

 

Your visa type isn't necessarily what determines your residency status for tax purposes as there are multiple factor involved. Assuming you ceased to be an Australian resident from 26th November, you will be taxed as follows:

 

Your income from 1st July 2020 - 25th November 2020 would be taxed using the resident tax rates.

 

Your income from 26th November 2020 - 30th June 2021 would be taxed using the foreign tax rates.

 

Hope this makes sense Smiley Happy

 

Regards,

 

Tony

 

 

 

 

Newbie

Replies 1

Good Afternoon,

 

Thanks for your answer.

Indeed, it makes sense.

But according to your second example, just to understand,

 

If I stay in the same place, from 26 th November 2020 to 26 th of May 2021, do I will be considered as a resident for tax for this period, or it will be foreign resident anyway ? 

ATO Community Support

Replies 0

Hi @Morganeb

 

The date given in the second example is just the last day of the financial year and changing it to a date before that won't make a difference.

 

In saying that, you work out if you're a resident for tax purposes and you let us know on your tax return. As @adam has mentioned, this isn't necessarily determined by your visa type.

 

If you haven't already then you can read through the Residency information we have on our website.

 

Ari