Guide to the 2018 Australian Working Holiday Visa Tax Refund

1. Guide to the 2018 Australian Working Holiday Visa Tax Refund Posted on 03 July 2018 HERE ON A WORKING HOLIDAY? There’s nothing like the Land Down Under! Australia is one of the best places to travel. Plus there are lots of opportunities to work whilst you’re here. Unfortunately, a working holiday isn’t automatically a tax holiday and for the new arrival, the Australian tax system can be a loose cannon! If you work and earn income while in Australia you are expected to pay tax on your earnings. You can claim your tax refund with us. NEW RULES FROM 1 JANUARY 2017 There was a tax system change for working holiday makers from the 1st of January 2017. From that date, the following working holiday maker visa subclass were affected by the new rules: 417 (working holiday) 462 (work and holiday)

2. WHAT ARE THE NEW RULES? From the 1st of January 2017, Working Holiday Visa (WHV) holders are taxed at 15% on the first $37,000 of income earned regardless of residency status. Thereafter, tax at ordinary rates will apply. This means that Working Holiday makers won’t be qualified for the tax-free threshold. WHAT ABOUT SUPERANNUATION? If you are earning more than $450 in a calendar month, you are entitled to super contributions from your employer. You can then claim this superannuation back once you leave Australia. This will be paid to you as a Departing Australia Superannuation Payment (DASP) – which is taxed at a final tax rate of 65% (from 1 July 2017). This means you can claim back 35% of the super contributions by your employer. RESIDENT OR NON-RESIDENT? As a WHV holder, you are generally considered a non-resident for tax purposes. This is consistent with your visa which reflects that you do not intend to stay in Australia permanently, but only intend to have a holiday while working for some time. There are a few exceptions to this rule! For example, you need to demonstrate that your living and working arrangements are consistent with making Australia your home (like applying for a sponsorship or permanent resident visa and getting approved). The burden of proof will lie with you. HOW DOES YOUR TAX TREATMENT DIFFER IF YOU ARE A NON-RESIDENT? There are a few advantages in being considered non-resident for tax purposes. First, non-residents are taxed only on income earned in Australia, whereas residents for taxation purposes are taxed on all income earned inside and outside Australia. Non-residents are exempt from the 2% Medicare levy, which residents have to pay to cover basic medical costs. WHEN TO LODGE YOUR 2018 TAX RETURN The Australian financial year is 1 July 2017 to 30 June 2018 and tax returns should be lodged right after that date. If not enough tax has been taken out whilst you were working in Australia, you’ll have to pay the shortfall. But if you’ve paid too much, you'll get a refund! If you finished your employment or you are leaving Oz before the 30th of June, it is possible to lodge your tax return before the financial year-end. You just need to provide your PAYG summary or last payslip from your employers. Pinkcow can take the pain out of the process by preparing and lodging your tax return for you while you’re working or travelling. Since we are an online tax company, everything can be done from your mobile phone. We can also maximise your tax refund by giving advice on your work related deductions and other tax offsets. Plus, we guarantee we have the lowest price compared to our main competitors! Claim Your Tax Back Now!