bcworld

Are you sure?

If you use this tool:

http://calculators.ato.gov.au/script...dent.XR4&go=ok

...it tells you whether or not you are classed as resident or non-resident. As far as I can see a working holidaymaker will be assessed as non-resident. But it really seems to depend how long you stay in one place for.

GinaUK

When you use the tax calculator you need to tell it that you are "resident".

"Resident" has one meaning for the Immigration Authorities. For them you are a non-resident.

"Resident" has a different meaning for the ATO (taxman). For the ATO you are resident (unless you are visiting for less than six month).

I put "visiting" in bold, because you don't have to be working for six months or more. It's just physical presence that's required.

Hope this helps.

Gina

GinaUK

Nope. Doesn't have to be in one place. As I said above, you just need to be in Australia for a minimum of six months. And bingo, the ATO class you as resident.

(Residency is explained on the ATO website.)

Gina

CaptainMerton

I am only here for 10 weeks so I guess i am non-resident for tax purposes. I guess i could say i was here for 12 months. I dunno.

bcworld

I'm aware of that. With the ATO tool I mentioned it tells you whether you meet the ATO definition. For WHV most answers are straightforward, however if you don't stay in one place for longer than 6 months you are tax non-resident. In order to be resident you must stay in one place 6 months. So if you work 5 months in Melbourne, 4 months in Sydney then travel for 3 you are non-resident and taxed on every cent.

You are a non-resident of Australia for taxation purposes as your behaviour during the time you spent in Australia does not reflect a degree of continuity, routine or habit that is consistent with residing here.


You provided the following information

Are you migrating and settling in Australia? No
Are you an Australian returning to live? No
Do you intend staying in Australia for six months or more? Yes
Have you stayed or intend to stay in a particular place continuously for six months or more? No
What is your main purpose for being in Australia? holidaying, casual employment
Where do you live while in Australia? renting or leasing accommodation
Do you have a spouse and/or dependent children? No
Where do you hold the majority of your assets? overseas
Are you a member of any clubs, churches, community groups or organisations in Australia? No
Have you actually been in Australia either continuously or intermittently for 183 days or more in the year of income? Yes
Is your usual place of abode outside Australia? Yes
Do you intend to take up residence in Australia? No

GinaUK

Ah, I misunderstood. I thought you meant you were working for the company for only ten weeks but staying on in Oz. People on short trips usually come on an ETA not on a WHV.

You can't say you were here for 12 months, because when you leave your passport will be scanned and the date of departure logged in the system.

Here in Oz, Immigration, taxman, and banks all happily pass info on to each other. Different set-up from the UK.

Gina

CaptainMerton

That is bad news.

bcworld

Yup, and not a rule that is applied to Aussie WHM's in the UK - I know many of them look forward to getting their refunds once they leave.

GinaUK

Looks like you're stuffed on the tax front. But you can still claim back your super (online claim form on the link I gave you before )

Gina

CaptainMerton

The super is very small compared to the tax i would have been able to claim back if classified as a resident. One thing i've noticed is the tax rates here are much higher than the UK - the tax free threshold on income tax is $6000 about half of what it is in the UK and you pay 30% tax on earnings above equivalent of about 15grand in the UK. Whoomph! Didnt realise there was such a difference. Better switch onto the VBs to cut down my outgoings me thinks!

GinaUK

Look, I don't want to go into this in all the detail, but you're wrong.

In brief, there are four tests to decide whether you are resident for tax purposes. You need to pass one of the four tests to be considered resident for tax purposes.

So, if the above isn't made-up but your real-life situation, don't condemn yourself to non-resident status at tax time but pay someone to do your tax return for you.

Gina

bcworld

Feel free, because I'm confused, the ATO website seems quite clear.

GinaUK

Sorry, but I simply haven't got the time. Like I said above, if your example is actually your personal situation, pay someone to do your tax return for you.

Gina

shanek25

Guys

Apologies for being a dumbass, but i still dont fully understand...

I am moving to australia next month on a WHV. I hope to work in Melbourne for 12 months - or as close as possible to 12 months. It seems from the above that i will therefore be a tax-resident. And that i will be entitled to some kind of a tax refund?? How do i calculate - approximately - how much of a refund i will get?? Not counting the superann refund...

I am thinking of this as some kind of savings scheme that will leave me with cash at the end of my stay. Is this correct?? How can i figure out roughly how much i will get back??

Thanks for any help!

WAaccounts

Hi.

I know this thread is old, but there seems to be some confusion in here.

The information given by some members about being legally able to claim tax resident status on a WHMV is incorrect.

You cannot legally claim tax residency while on a 12 month WHMV, regardless of how many criteria you fulfill. Your acceptance of the WHMV conditions constitutes an express negation of rights to claim tax residency.

The advice and methods of many taxback agencies is based on an assumption un-tested in the courts that by proving to the ATO that your actions since being in Australia represents an 'acceptable' demonstration that your status has altered since arriving and that you can legally demonstrate that you are now a resident for tax purposes.

This whole argument is undermined by the simple fact that your agreement to the WHMV rules prevents you from making such an argument.

None of this means you can't claim tax back though. You just need to not be entirely truthful, without lying as such. Many WHMV holders come away from Australia and claim back much of their tax. Problems can arise down the line though if they choose to return to Australia to work in the future. An ATO audit can see them dealt a tax bill for the incorrect claim while on their WHMV, plus accrued interest.

The taxback agencies aren't culpable. An individual's tax return is their own responsibility and they are liable for the information contained within in, regardless of who helped them complete it.

All of this said, it's dangerous ground to generalise on the issue of income tax. It's highly subjective, but the points I'm making are applicable generally to anyone on a WHMV.

Trust me. I know what I'm on about.