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Changing from whv tax to residency tax

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Hi there,
So I was on a working holiday visa for 2 years and am part time employed. I have recently applied for a de-facto visa with my partner and so I'm wondering if my tax ammount changes?
Many thanks
Heidi
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Devotee

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Hi @Heidinew

From 1 January 2017 – as a working holiday maker – the first $37,000 of your income is taxed at 15%, with the balance taxed at ordinary rates.
You are a working holiday maker if you have a visa subclass:
417 (Working Holiday)
462 (Work and Holiday).
If your circumstances change then it would be most probable that so would your tax rate. Have a look at the below tool, there is a online calculator which will definitely help you work out if you are a resident for taxation purposes;
www.ato.gov.au/individuals/international-tax-for-individuals/work-out-your-tax-residency/
Also if you have advised your employer that you are either non resident or on a working hoilday visa and your circumstances have changed then you would need to give them a withholding declaration form to let them know of the change so you are taxed correctly - www.ato.gov.au/forms/withholding-declaration/
Hope this helps, any further questions, ask away :-)
Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time
4 REPLIES 4

Best answer

Devotee

Replies 0

Hi @Heidinew

From 1 January 2017 – as a working holiday maker – the first $37,000 of your income is taxed at 15%, with the balance taxed at ordinary rates.
You are a working holiday maker if you have a visa subclass:
417 (Working Holiday)
462 (Work and Holiday).
If your circumstances change then it would be most probable that so would your tax rate. Have a look at the below tool, there is a online calculator which will definitely help you work out if you are a resident for taxation purposes;
www.ato.gov.au/individuals/international-tax-for-individuals/work-out-your-tax-residency/
Also if you have advised your employer that you are either non resident or on a working hoilday visa and your circumstances have changed then you would need to give them a withholding declaration form to let them know of the change so you are taxed correctly - www.ato.gov.au/forms/withholding-declaration/
Hope this helps, any further questions, ask away :-)
Please note this is my personal view; I’m an ATO employee who chooses to help out here in my own time

Community Support

Replies 0

Hi @Heidinew,

 

Thanks for your question!

 

Under new legislation passed last year, if you're in Australia on a visa subclass 414 or 462, you can't elect to be a resident for tax purposes, but this may change if you change visa types. @Tracey74's right about the working holiday maker visa tax rates, and it's definitely worthwhile checking out the "Am I a resident for tax purposes?" infomration once your new visa comes through.

 

Check out our tax rates for residents to get a better idea of what may change if you become a resident for tax purposes. If your application is successful and you do become a tax resident, you'll also need to let your employer know by giving them an updated withholdign declaration form so they can update their payroll detials.

 

Hope this helps.

Superuser Registered Tax Practitioner

Replies 0

Hi Heidinew

 

If you apply for a de-facto visa and receive a bridging visa, working holiday maker tax rates effective as of 1/1/2017 won't apply to you. @JodieH is incorrect in saying people on visa subclass 417 or 462 can’t elect to be a resident for tax purposes.

 

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

Newbie

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Thank you everyone for your replies. I feel much more reassured now. Will get onto my employer just to reassure them too.
Great service. Thanks again Smiley Happy
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