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If you are thinking of coming on a working holiday


amibovered

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I'd do it ASAP, or you'll be giving about a third of your earning to the Government

 

From July 2016, those on a working holiday in Australia will no longer enjoy a tax free threshold of up to $18,200, and will instead be forced to pay 32.5 per cent tax from their first dollar earned.

 

http://www.abc.net.au/news/2015-05-12/budget-2015-working-holiday-crackdown-to-yield-millions/6464330

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Between this and the 2nd visa rules I can imagine less people bothering, it might just be easier for them to go on a long holiday

You're probably right, but I suppose the Government think that the majority of WHV's probably pay nothing at the moment so even if less people come the tax take will still be higher.

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You're probably right, but I suppose the Government think that the majority of WHV's probably pay nothing at the moment so even if less people come the tax take will still be higher.

 

Short sighted though as most put that money straight back into the economy!

 

I am not sure it will really put people off though - maybe short term it might. Like I said they were the rules when I came and there were a lot of us around.

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You would still get some of it back though when leaving??

 

No, not unless you have paid too much tax for some reason, which would be unlikely. The only reason people get any back at the moment is because they have not worked for the full year but are taxed as though they are so when the allowance is taken in to account they have paid too much tax for the year. No allowance no danger of paying too much tax unless you earn enough while working to fall in to a higher tax bracket but don't work for the full year, which is unlikely on a WHV.

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My sons has done full 6 months here in Sydney on WHV he was still taxed the 32% from day one, so hopefully he can claim some back as only worked 6 out of 12 months. Tax office had said that's the way it works with some employers.

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  • 2 weeks later...
Cash in Hand - the only way to go.
if that's

What You want to do fair enough but then you shouldn't expect any free services like Medicare eg if you don't want to pay tax

Edited by AJ
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