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1. Posted by Olihunter1 (Budding Member 8 posts) 8y

Olihunter1 has indicated that this thread is about Australia

Hi,
I'm planning on travelling to oz for a year on a WHV. Does anybody know the situation with tax on your wages out there?
Thanks,
Oli

2. Posted by aharrold45 (Travel Guru 1281 posts) 8y

I read on http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm&pc=001/002/046/002/002&mnu=1045&mfp=001/002&st=&cy=1 that for overseas citizens the tax rate is 29 cents in the dollar from $0-$30000 and then 30 cents in the dollar for every dollar between $30000 and $70000 which you'd be extremely lucky to be in that tax bracket on a working holiday visa. I'd assume a non resident for tax purposes would be what a person on a working holiday visa would come under. Just go to www.ato.gov.au and you will find anything you want to know about the Australian income tax system.

3. Posted by Sander (Moderator 4809 posts) 8y

Note that many backpackers actually do get to be treated as residents for tax purposes (there's a self-assessment test you can do on the same site; but basically, if you live in an apartment for a couple of months while working, and during that time live as a local (go to the gym, to movies, things like that), you're one: "resident for tax purposes" thus has no relationship with being a real "resident").
Because of this, you can then at the end of the tax year get a lot of money returned to you (since your employer would have withheld money from the very first dollar, while as a resident for tax purposes, you don't pay taxes over the first x-thousand dollars, plus the tax rate if lower, too.)

Also, once you arrive in the country (and before you start working), you need to apply for a Tax File Number. Without one, companies you work for are required to withhold the maximum possible percentage of tax (45%).

4. Posted by Olihunter1 (Budding Member 8 posts) 8y

Thanks for your help - its really appreciated. Saved me loads of hassle once as i got out there as well!!

5. Posted by majito (Respected Member 442 posts) 8y

As a non-resident you'll be taxed at a minumum of 29%. You cannot get any of it back if you are a non-resident on a working holiday visa. But, if you're taxed at a lower rate you'll have to pay the govt the difference; higher and you might get some back.

Having said all that if you use one of the backpacker tax specialists like Travellers Express or taxback.com they'll probably find a way to get you some cash back.

6. Posted by cplford (Budding Member 98 posts) 8y

You should check this with your UK tax people as well. Australia has many reciprocal agreements with other countries and I think the UK is bound to be one of these. Under these agreements you may be able to be taxed in one or the other country. This may have some advantages for you if you have a favourable tax situation at home. If you have a Tax File Number here in OZ, you may only be taxed as little as 15c in the $ if you are in particular "itinerant" occupations such as fruit picking or sheep shearing.

7. Posted by cplford (Budding Member 98 posts) 8y

Amend my last post. You are more likely to be taxed 29c in the $!