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482 Visa and Tax Residency

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Good morning, 

 

I was wondering if you could clarify a point regarding the tax free threshold for non-permanent residents but who are resident for tax purposes. 

 

I am working in Australia on a 482 visa with a view to becoming PR either via the skilled or transition route. I have applied for and received a TFN. I have completed the ATP Questionnaire for determining tax residency and it states that I am Australian resident for tax purposes.

 

My recent payslip shows that I have not received the benefit of the tax free threshold and some of the information I have found online is contradictory. The ATO site states that if you are tax resident in Australia (which I believe to different from a PR type residency) then you should get the tax free threshold - is this mitigated by the visa I hold? 

 

Hopefully, you can assist in clearing up this matter and advise of any actions I may need to take.

 

Thanks

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Hi @jleeds

 

Thanks for getting in touch!

 

If you, as the payer, have reasonable grounds to believe that the statement the supplier makes is false or misleading, you're required to withhold 47% from the total payment for the supply. Otherwise, no withholding is required if you believe the statement to be true.  

 

If we conduct a review and find that the statement was incorrect, payers won't be penalised if we believe it was reasonable for them to rely on the supplier's signed statement. You can find more information about when a statement by supplier can or shouldn’t be used on our website.  

 

Thanks, JodieH. 

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Hi @jleeds

 

Thanks for getting in touch!

 

If you, as the payer, have reasonable grounds to believe that the statement the supplier makes is false or misleading, you're required to withhold 47% from the total payment for the supply. Otherwise, no withholding is required if you believe the statement to be true.  

 

If we conduct a review and find that the statement was incorrect, payers won't be penalised if we believe it was reasonable for them to rely on the supplier's signed statement. You can find more information about when a statement by supplier can or shouldn’t be used on our website.  

 

Thanks, JodieH. 

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@jleeds @JodieH

 

jleeds,

 

I would act with care.

 

As Jodie mentioned, if the Payer has information that the Statement by a Supplier is not correct then, the Payer takes responsibility for not withholding 47%.

 

If there are material amounts and multiple supplies, then it may well be that the Statement by a Supplier is not correct.

 

In my view, the ATO should not allow someone with a ABN to issue a Statement by a Supplier.

 

 Duncan Smith