Australian tax back season is nearly here, this is my updated Australian working holiday visa tax refund guide.
The last time I published a tax back guide was back in 2015! So it was about time I had an updated article haha.
Don’t worry I have double and triple checked everything with our partners at taxback.com.
If you are wondering how to claim your superannuation back read this post.
How can I get my Australian working holiday visa tax refund?
Good question! Here is basically everything you need to know about doing your Australia working holiday tax refund:
Australia has a unique tax year that begins on 1 July and ends 30 June of the following year.
This means that if you’re filing this year’s current year tax return, you’ll be reporting income earned between 1 July 2017 and 30 June 2018.
When applying for a job in Australia on a working holiday visa, you should make sure your prospective employer is registered to hire working holidaymakers.
Registered employers will charge working holidaymaker tax rates at 15% on income up to $37,000.
However, non-registered employers are obliged to withhold tax at the higher non-resident rate of 32.5% on income up to $37,000.
So it’s in your interest to make sure you only work for employers who are registered to hire working holidaymakers.
When you start work (and each time you change employers), you’ll be given an Employment Declaration Form.
Your employer is obliged by law to give you one of these forms and ensure your completed form is sent off to the Australian Taxation Office (ATO) within 28 days of starting work.
When you go to fill this form in you’ll be asked if you are a resident or non-resident for tax purposes.’
Regardless of the visa subclass, all working holidaymakers in Australia are considered non-residents for tax purposes.
You’ll be taxed on working holidaymaker tax rates when you come to Australia, which his 15c on every dollar up to $37,000 and 32.5% on each $1 over $37,000 to $87,000.
Residents of Australia are subject to a small medical levy deducted from their taxable income at 2%. It guarantees Australians and some other nationalities (Britons and Italians) access to healthcare at little or no cost.
If you’ve been paying the levy as a non-resident and it turns out you qualify for an exemption, you could be entitled to some tax back.
You should file your tax return by the 30 June deadline each year you are in Australia. If you overpaid tax, this is also a chance to claim.
You may be able to claim for expenses such as the cost of, a course for bar work on construction. Common items also include courses such as RSA (Responsible Service of Alcohol), RCG (Responsible Gambling Training) and White Cards (for safe work on Australian construction sites).
Most Irish people can apply for tax-back twice!
Once at the end of the financial year, and also when you have finished work and are about to leave Australia.
It just depends on whether your visa starts in the middle of the tax year, rarely people arrive bang-on when it starts.
For the most recent tax year 1 July 2017 to 30 June 2018, you can get your tax back in just 10-15 working days (2-3 weeks). For earlier tax years it can take up to 4-8 weeks.
You should keep records of all your earnings (payslips) including superannuation, work-related outgoing i.e. extraordinary expenses incurred as a result of your work (may be tax-deductible), employer details i.e. business name, address etc, start and finish dates with different employers etc.
Ideally, if these are electronic it’s the easiest way to store them.
Worrying about tax and stressing over it is pointless!
We much prefer just letting someone do it for us in the grand scheme of things totally worth it!
Check out our recommended tax back specialists.
Final points on maximising your Australian working holiday visa tax refund:
Don’t forget about your superannuation which is a whole different kettle of fish. Luckily for you, I have written an article just for you on claiming your superannuation.
If you are heading home and need to transfer your money from Australia to Ireland sign up to Currencyfair here and get your first 5 transfers for free.
If you are curious about just how much tax you can claim from Australia, then simply fill in the form here to find out.
I hope this article has helped you claim your Australian Working Holiday Visa Tax Refund.
Be sure to hit that share button.
Cheers,
Stephen Palmer