417 Working Holiday Visa - do I need to declare tax I earned overseas before my visa started?

[#1]

I was working full time in the UK until November 2016. I then came to Australia on the 417 Working Holiday Visa. All earnings in Australia have been since January 2017 and less than $37,000. My earnings are eligible for the new 15% tax rate, but do I need to declare my earnings in the UK that fall into the same Australian financial year, or is my tax return based solely on what I have earned since arriving in Australia in November 2016?

[#2]

G'day SJH                         

You have an interesting question there.

From what I understand the general rules are around tax residency.

From your situation I would see that about half of the year you were Not a resident for tax purposes meaning you were living and working outside Australia. But at a point you would have become a residen for tax purposes here; during the year.

To illustrate an argument I will use 1st 2017 a the day you arrived and started working in Australia.

The Foreign income earned before 1st January 2017, would not be declared on your Australian Income Tax Return.

But any income on or after 1st January 2017 to 30 June 2017 ought to be declared on your Australian Income Tax Return.

But the accounting and processing is far more complicated. So if you want it broken down perhaps see a Tax practitioner for financial advice.

[#3 · Accepted solution]

Hi, @SJH

The answer to your question is genrally no, If you have a Higher Education Loan Program (HELP) or Trade Support Loan (TSL) debt and you're a non-resident for tax purposes – you'll need to declare your worldwide income or lodge a non-lodgment advice.
If you're not an Australian resident for tax purposes, you are only taxed on your Australian-sourced income, so you generally don't need to declare income you receive from outside Australia in your Australian tax return. With the visa 417 working hoilday visa you can't be a resident for taxation purposes, even if a person says they are.
Helpful page on the website is www.ato.gov.au/individuals/international-tax-for-individuals/coming-to-australia/working-holiday-mak...
And information for foreign income https://www.ato.gov.au/individuals/income-and-deductions/income-you-must-declare/foreign-income/

Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time

[#4]

Hi SJH

Your UK income is not taxable in Australia but needs to be reported under 'IT4 Target foreign income'.

One Stop tax
Tax Return and Taxback Specialist
www.onestoptax.com.au