Getting an income tax refund for working holiday visa in Australia

fergal_d

Hi,

I am working in Australia now and paying A LOT of tax. I know I get some back but I am not sure what % I will get back

Would anyone be able to tell me how much I will get back of a tax balance of $7000 in June 2009

Regards,
Fergal.

hussey

are you a resident for tax purposes?

Hopw long have worked?
how long have you been in Oz
what is the net/gross income you earned?

brendansmith

Generally, you are an Australian resident for tax purposes if you have:

• always lived in Australia
• moved to Australia and live here permanently
• been in Australia continuously for six months or more and for most of the time you have been
  • in the one job and
  • living in the same place, or
• been in Australia for more than half of the financial year, unless
  • your usual home is overseas, and
  • you do not intend to live in Australia.

WHAT THE FU(K LIKE????

Shutuplaura

brendansmith wrote: »

Generally, you are an Australian resident for tax purposes if you have:

• always lived in Australia
• moved to Australia and live here permanently
• been in Australia continuously for six months or more and for most of the time you have been
  • in the one job and
  • living in the same place, or
• been in Australia for more than half of the financial year, unless
  • your usual home is overseas, and
  • you do not intend to live in Australia.

WHAT THE FU(K LIKE????

In practice its never checks though isn't it? When I came over on a WHV my recruitment agents registered me as a resident for tax purposes automatically. When I asked them they said they do it for everyone. And that was a large, reputable company.

I believe the loophole is this

"[*]in the one job and
[*]living in the same place, or"

The intention to live in the one place and stay in the one job is sufficient.

Signing a year long lease for example and joining a few clubs in the city of your residence can also be used to prove you intend to live longer than six months in a place.

Now as with everything, this advice probably should be taken with a pinch of salt. Thats what me and my partner, and most of my WHV friends have done. Personally we (myself and the missus) figured that it was worth taking the chance. They rarely check in my experience and we figured that if we were audited then we would have a fairly good chance of playing the stupid mick/genuine misunderstanding card with some success.

portomar

Shutuplaura wrote: »

In practice its never checks though isn't it? When I came over on a WHV my recruitment agents registered me as a resident for tax purposes automatically. When I asked them they said they do it for everyone. And that was a large, reputable company.

I believe the loophole is this

"[*]in the one job and
[*]living in the same place, or"

The intention to live in the one place and stay in the one job is sufficient.

Signing a year long lease for example and joining a few clubs in the city of your residence can also be used to prove you intend to live longer than six months in a place.

Now as with everything, this advice probably should be taken with a pinch of salt. Thats what me and my partner, and most of my WHV friends have done. Personally we (myself and the missus) figured that it was worth taking the chance. They rarely check in my experience and we figured that if we were audited then we would have a fairly good chance of playing the stupid mick/genuine misunderstanding card with some success.

i was under the impression WHV makes you resident for tax purposes for the duration of your Visa. Actually, im almost positive it does. every TFN declaration ive filled in i've ticked the 'resident for tax purposes' box.

hussey

portomar wrote: »

i was under the impression WHV makes you resident for tax purposes for the duration of your Visa. Actually, im almost positive it does. every TFN declaration ive filled in i've ticked the 'resident for tax purposes' box.

You are incorrect in your assumption,
check here
http://www.ato.gov.au/individuals/content.asp?doc=/content/64131.htm

enerally, you are an Australian resident for tax purposes if you have:

* always lived in Australia
* moved to Australia and live here permanently
* been in Australia continuously for six months or more and for most of the time you have been
o in the one job and
o living in the same place, or
* been in Australia for more than half of the financial year, unless
o your usual home is overseas, and
o you do not intend to live in Australia.

portomar

ok given its tax time i'm gonna wade in on this as well.

I've been working in sydney in a number of jobs for about 6 months on WHV. I know the story with Super is that you can't get that back if you intend to extend visa into 2nd year/migrate. Basically my questions are thus:

can i get tax back now, at tax time. and if so, will i get it all back as i am WHV, or is it just like ireland, you'll get back what you've overpaid for the tax year (i've defo overpaid anyway)?

if i extend to 2nd year can i get my taxback in its entirety, before i get my 2nd year visa, just as if i had just left after 1st WHV?

Do i need to leave australia to get 1st year taxback before my 2nd year?

to complicate matters i have an ABN which i need to do tax return for but am gonna pay an expert for that one!

thanks in advance for help!

hussey

portomar wrote: »

can i get tax back now, at tax time. and if so, will i get it all back as i am WHV, or is it just like ireland, you'll get back what you've overpaid for the tax year (i've defo overpaid anyway)?

No, you get back what you overpaid.

if i extend to 2nd year can i get my taxback in its entirety, before i get my 2nd year visa, just as if i had just left after 1st WHV?

Assuming you earned over 6k, you won't get it all back, only what is overpaid.
and yes you can get it back, usually takes 2weeks after you lodge your return.

Do i need to leave australia to get 1st year taxback before my 2nd year?

No, it is like ireland, each tax year starts again (but in oz 1/7-30/6)

fergal_d

hussey wrote: »

are you a resident for tax purposes?

Hopw long have worked?
how long have you been in Oz
what is the net/gross income you earned?

I am a resident. I am on my 12 month working holiday visa. I have been in the country for 1.5 months.

I have been working for about 6 weeks

My gross earnings so far are $16,457.15

My net earnings are $11,121

I have paid $5,336.15 tax

I will probably pay $9,000 tax by the end of the tax year (End of June)

That's A LOT of money and I was wondering how much of it I will get back?

FreeAnd..

I am on my 12 month working holiday visa. I have been in the country for 1.5 months.

If this is correct then you are not a resident for tax purposes...you need to have been here for 6 months living and working in the same place to be a resident for tax purposes...

From your calculations you do not appear to be paying any super, how is this? Roughly it looks like your tax is around 29% (if you tag on some super) so I dont think you will be entitled to much back...Hussey has the weekly taxs charts but it all roughly looks correct

hussey

fergal_d wrote: »

• I am a resident.
• I am on my 12 month working holiday visa.

I have been in the country for 1.5 months.

the two things in the list contradict each other.
How can you be an aussie resident and be on a WHV?

you can be classed as a RfTP if
"moved to Australia and live here permanently"
if you intend to live here permanently, you can declare yourself as a resident for tax.

remember this is self assessment it is up to you to decide what you declare etc.

Doc

Did you apply for a tax file number before you started work? (Think it’s the same as a PPS No. or RSI No. at home) I am on a WHV and applied for one which I have received. It says on the letter from the Australian Taxation Office that the number came on

For taxation purposes, you are registered as a non-resident of Australia

I assume that you would be the same as me so you’re a non-resident for taxation purposes.

fergal_d

Sorry ,

I am on a working holiday visa, I am not a resident.

I have my TFN number.

Any ideas anyone on how much I will get back?

hussey

Fergal send me a PM with details and I'll get back to you about it

Oh if your intention is to stay in Australia long term you can be classed as a resident for tax purposes
http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Resident.XR4&go=ok
let me know the results of the above

if you intend to stay in same place(for 6months) and same job(for 3+months)
then you can be classed as tax resident.

passive

hussey wrote: »

if you intend to stay in same place(for 6months) and same job(for 3+months)
then you can be classed as tax resident.

*lays his shovel down beside the thread* mmm... still warm.

ahem, apologies.

You say "living in the same place for 6 months" but would it not be same place +same job for 3+ months, as long as you've been in Australia for the last 6+ months? just reading:

"* been in Australia continuously for six months or more and for most of the time you have been
o in the one job and
o living in the same place, or"

Though... I dunno. Maybe I should talk to my employer instead of spamming boards. Cheers anyway.

hussey

passive wrote: »

*lays his shovel down beside the thread* mmm... still warm.

ahem, apologies.

You say "living in the same place for 6 months" but would it not be same place +same job for 3+ months, as long as you've been in Australia for the last 6+ months? just reading:

"* been in Australia continuously for six months or more and for most of the time you have been
o in the one job and
o living in the same place, or"

Though... I dunno. Maybe I should talk to my employer instead of spamming boards. Cheers anyway.

I'm not 100% sure, TBH but that calculator is a good starting point to figure out