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This must be the only correct interpretation. I have a nunmber of clients I explain this to, then they they go to the ATO (in person or call) and the staff assist them to lodge to the contrary.
The words of the Income Tax Rates Act 1986 No. 107, 1986 speak for themselves:
(1) An individual is a working holiday maker at a particular time if the individual holds at that time:
(a) a Subclass 417 (Working Holiday) visa; or
(b) a Subclass 462 (Work and Holiday) visa; or
(c) a bridging visa permitting the individual to work in Australia if:
(i) the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and
(ii) the Minister administering that Act is still to make a decision in relation to the application; and
(iii) the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).
The key word here are "or", namely subpara (c)(i) "and/or" which means that the subpara (ii) and (iiI) are to be construed in isolation from subpara (i). In conclusion, if you are on 417 or 462 visa, you apply for another visa and you are granted a brdiging visa, you will still be taxed under the 15% on the first $37,000 and then as residents for tax purposes.
It also follows, the tax residency here is a separate issue. While the tax residency does not impact on the rate of tax of 15% on the first 37,000, it can bring about some benefits in the form of **invalid HTML removed**
thanks for letting me know. It was not an edit but part of my message did not load. I believe I wanted to say that while WHV holders are still taxed under the 15% tax on the first $37,000 the WHV legislation does not deny the tax offsets available to residents. Contrary to the intentions behind the legislation, one of which appears to be simplification of the assessment of WHV holder returns (to the ATO), the outcome is quite the opposite. Not only confusion arose around if you are "already" taxed under WHV legislation (when applying for WHV visa from another visa), but also if you are "still" taxed under WHV legislation when transitionoing from WHV to another visa.
It still appears to be of high importance to assess residency vs non-residency for WHV holders, making a process of preparing a simple return a lengthy and costly excercise for the client, and us tax pracitioners.