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-   -   Tax Refund - Working Holiday Visa (https://britishexpats.com/forum/australia-54/tax-refund-working-holiday-visa-672757/)

Smudger82 Jun 16th 2010 9:08 pm

Tax Refund - Working Holiday Visa
 
Hi all,

Does anyone know how much of my tax I may be able to claim for in my tax return? I have heard that most people get a tax refund at the end of the financial year. I was on a working holiday visa from July 09 to Feb 10 and a Temporary Spouse Visa from Feb 10 to present. Will the money earned as a 'working holiday' worker be all completely lost?

Cheers

lonndongeek Jun 16th 2010 10:25 pm

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by Smudger82 (Post 8637527)
Hi all,

Does anyone know how much of my tax I may be able to claim for in my tax return? I have heard that most people get a tax refund at the end of the financial year. I was on a working holiday visa from July 09 to Feb 10 and a Temporary Spouse Visa from Feb 10 to present. Will the money earned as a 'working holiday' worker be all completely lost?

Cheers

The value of any advice you get from an Internet forum is worth exactly the same amount as you pay for it.

Go speak to an accountant.

Cheers

Steve

jothefw Jun 16th 2010 10:29 pm

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by lonndongeek (Post 8637675)
The value of any advice you get from an Internet forum is worth exactly the same amount as you pay for it.

Go speak to an accountant.

Cheers

Steve

I agree but I have heard that if you're leaving the country (ie to go back to the UK) you can claim all your tax back .... but it's only rumour so get some proper advice! :)

Smudger82 Jun 16th 2010 11:34 pm

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by lonndongeek (Post 8637675)
The value of any advice you get from an Internet forum is worth exactly the same amount as you pay for it.

Go speak to an accountant.

Cheers

Steve

Sorry....thought that was the point of this forum?

I am obviously going to seek professional advice further down the line, I just thought someone here might have been in the same situation and could give me a heads up on what to expect.

elice_in_oz Jun 17th 2010 2:14 am

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by Smudger82 (Post 8637527)
Hi all,

Does anyone know how much of my tax I may be able to claim for in my tax return? I have heard that most people get a tax refund at the end of the financial year. I was on a working holiday visa from July 09 to Feb 10 and a Temporary Spouse Visa from Feb 10 to present. Will the money earned as a 'working holiday' worker be all completely lost?

Cheers

AFAIK, whether you're on a temporary (WHV) visa or a permanent one you are considered a resident for tax purposes and will not get any back (unless your overall income is lower that what you paid tax on during the year).

Not sure if this makes sense, but you can only claim all the tax back from your income while on a WHV if you leave the country, but I'm guessing you are still here, just on a different visa? If soo, no tax back, except for whatever adjustment the ATO will sort out for you when you lodge the tax return, I'm afraid.

roaringmouse Jun 17th 2010 3:04 am

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by elice_in_oz (Post 8637944)
AFAIK, whether you're on a temporary (WHV) visa or a permanent one you are considered a resident for tax purposes and will not get any back (unless your overall income is lower that what you paid tax on during the year).

On a WHV you can be considered either resident or non-resident for tax purposes, depending on your movements. For those who stayed in one location for most of their time they will probably be considered resident for tax purposes - but for those who travelled around quite a lot then they will probably be non-resident for tax purposes.

Bermudashorts Jun 17th 2010 3:22 am

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by roaringmouse (Post 8637995)
On a WHV you can be considered either resident or non-resident for tax purposes, depending on your movements. For those who stayed in one location for most of their time they will probably be considered resident for tax purposes - but for those who travelled around quite a lot then they will probably be non-resident for tax purposes.

Not studied Australian tax case law on this, but applying some basic tax principles, I think it is extremely unlikely in the circumstances described that Smudger would be considered non resident.

He is still in Australia, presumably planning to stay, would love to see the argument that he is not tax resident. :p

bcworld Jun 17th 2010 3:27 am

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by Bermudashorts (Post 8638013)
Not studied Australian tax case law on this, but applying some basic tax principles, I would agree with Elice. I think it is extremely unlikely in the circumstances described that Smudger would be entitled to a tax refund.

He is still in Australia, presumably planning to stay, would love to see the argument that he is not tax resident. :p

I would say someone who was taxed as non-resident, which he may have been on the WHV...who subsequently meets the residence test when filling in a tax return would almost certainly be due a refund.

Taxed as non-resident means they paid 29% on ALL earnings without any tax free allowance...therefore some recalculation would be necessary = probable refund.

However the statement that 'you can claim all your tax back' is almost certainly false...but would depend on being taxed as non resident, subsequently being defined as a resident and quite a low income....probably.

Bermudashorts Jun 17th 2010 3:31 am

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by bcworld (Post 8638015)
I would say someone who was taxed as non-resident, which he may have been on the WHV...who subsequently meets the residence test when filling in a tax return would almost certainly be due a refund.

Taxed as non-resident means they paid 29% on ALL earnings without any tax free allowance...therefore some recalculation would be necessary = probable refund.

However the statement that 'you can claim all your tax back' is almost certainly false...but would depend on being taxed as non resident, subsequently being defined as a resident and quite a low income....probably.

Ah ok. I will rewrite that then, was just trying to say that I am sure he would be considered resident throughout, regardless of whether that means there is a refund or otherwise.

elice_in_oz Jun 17th 2010 5:02 am

Re: Tax Refund - Working Holiday Visa
 

Originally Posted by bcworld (Post 8638015)
However the statement that 'you can claim all your tax back' is almost certainly false...but would depend on being taxed as non resident, subsequently being defined as a resident and quite a low income....probably.

Didn't mean to mislead anyone with that statement, it was probably the wrong way to phrase it. I just know that a lot of my friends who left oz after being here on a WHV got back most of the tax they paid.


Originally Posted by Bermudashorts (Post 8638019)
Ah ok. I will rewrite that then, was just trying to say that I am sure he would be considered resident throughout, regardless of whether that means there is a refund or otherwise.

That was also what I was trying to put across. It sounded to me that the OP was asking a question that related more to whether he would be considered as resident for tax purposes even while on a WHV. Sounds like a yes any way we look at it. As to whether he will get a refund, filing a tax return will be the best way to find out.


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