sam_in_oz

Hi all,

I'm hoping you might be able to give me some advice on an issue I'm having with tax. I moved to Sydney at the beginning of February this year on a working holiday visa (417), since then I've had 2 web development jobs.

First job
- 6 week contract
- $300 a day incl. super
Net income per week: $1068.00

Second job (still in this role)
- 4 week contract
- $350 a day incl. super
Net income per week: $1056.80

The issue is that I'm paying far more tax in my second role than I was in my first, to the extent where I am actually taking home less in my second role even though I'm getting paid $250 a week more.

I believe that this is because I'm considered a 'non-resident', not sure if this was my fault or the company's but all I really want to know is is there anything I can do to change this, and if so how?

Also how can I ensure that this doesn't happen in a future role? And does anybody know about setting up my own ABN number as this could help reduce my tax payments?

Cheers
Sam

Bermudashorts

Well as a WHV holder you quite possibly are non resident. What are your intentions? I can't see why an ABN would reduce tax, not sure what you are meaning there?

ABCD......

The first job may have the tax allowance threshold applied, and the second may not. Hence the apparent different tax rates.

It will all be balanced out correctly at the end of the year when the tax return is done, and you get any over paid tax refunded.

The employer can change the tax method at any time for you.

Register for an Australian Business Number (ABN) | Registrations & licences
http://www.business.gov.au/BusinessT...mber(ABN).aspx

Dreamy

Have you checked with the payroll department that your wages file has been set up correctly?

Did you claim the tax-free threshold on your first job (if you're not resident for tax, I don't believe you're eligible for that)

Have you checked with the payroll department of your first position, that they had your wages file set up correctly? They may not have been taking enough tax if you had claimed the tax free threshold.

ABCD......

Sam

I just worked back your gross and tax, and the result is:

Your 1st job is being taxed at Australian Residents rates.
Your 2nd job is being taxed at Non Resident rates.

Tax Residency:

If you are visiting Australia for more than six months and for most of that time you live at the same place, and you either have or establish ties in the local community...
You ARE an Australian resident for tax purposes

If you are visiting Australia for more than six months, and for most of that time you are travelling and working in various locations around Australia
or
you are either holidaying in Australia or visiting for less than six months
You ARE a foreign resident for tax purposes