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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 @jordanmazurke,

 

Welcome to the Community.

 

You're right that a resident for tax purposes is different to a resident for immigration purposes (ie. permanent resident).

 

It sounds like you've already completed our 'Are you a resident?' calculator to help you determine your residency status for tax purposes.  If you're a resident for tax purposes, generally your visa status won't affect how your income is taxed (unless you're here on a working holiday maker visa subclass 417 or 462) - so you'd be eligible for the tax-free threshold.

 

If you've determined you're a resident for tax purposes (and not on a WHM visa), ask your employer or payroll to check how you answered question 7 and question 8 on your Tax file number declaration. 

 

If you answered 'Yes' at both "are you an Australian resident for tax purposes" and "do you want to claim the tax-free threshold from this payer", ask your employer or payroll about the amount of tax they've withheld from your pay. You can check to see how much tax should have been withheld using our tax withheld calculator or the relevant tax table.

 

If you answered 'No' at either of these questions, you'll need to complete a withholding declaration and provide this to your employer.

 

Thanks, NicM.

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Hi @jordanmazurke,

 

Welcome to the Community.

 

You're right that a resident for tax purposes is different to a resident for immigration purposes (ie. permanent resident).

 

It sounds like you've already completed our 'Are you a resident?' calculator to help you determine your residency status for tax purposes.  If you're a resident for tax purposes, generally your visa status won't affect how your income is taxed (unless you're here on a working holiday maker visa subclass 417 or 462) - so you'd be eligible for the tax-free threshold.

 

If you've determined you're a resident for tax purposes (and not on a WHM visa), ask your employer or payroll to check how you answered question 7 and question 8 on your Tax file number declaration. 

 

If you answered 'Yes' at both "are you an Australian resident for tax purposes" and "do you want to claim the tax-free threshold from this payer", ask your employer or payroll about the amount of tax they've withheld from your pay. You can check to see how much tax should have been withheld using our tax withheld calculator or the relevant tax table.

 

If you answered 'No' at either of these questions, you'll need to complete a withholding declaration and provide this to your employer.

 

Thanks, NicM.

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Thanks very much for the response - I will take this matter up with payroll.