Resident or non resident for tax purposes...

[Guest GraemeLowe1992]

Hey guys! Need someone to shine some light on this for me, have done my own research but would like to hear people's personal experience on this matter. I recently started working for a company and took it upon themselves to fill in my self assessment form stating that I was NOT a resident for tax purposes as I am here on a Working Holoday Visa subclass 417. When I got my first wage in I couldn't believe the percentage a what I was taxed.. I couldn't believe my eyes when I seen we get taxed 32.5% for every dollar we make.. Now I am perfectly happy to accept those consequences if I knew I could claim it all back once I leave including my Super Annuation money, but I'm hearing it's possible you can get none of that tax back! Has anyone here been in the same situation and been able to claim back their money? Any help would be appreciated, thank you!

[Guest]

When you filled in a tax file declaration when starting the job, which box did you tick? Or are you saying they filled it in? Did you sign it?

[Liam13]

no one should be filling out that information apart from yourself... Contact your employer and the tax office

[Guest GraemeLowe1992]

When you filled in a tax file declaration when starting the job, which box did you tick? Or are you saying they filled it in? Did you sign it?

 

Yeah basically I was uneducated on this at the time he presented the tax file declaration form to me, and ticked the box "Not a resident for tax purposes" assuming that would be correct, and I guess it would be correct in a sense but I know now it's entirely between me and the tax office whatever box I decide to tick. It wasn't until I seen the ridiculous amount of tax I was paying, almost half of my wage one week that I did my research! If I know that the money I'm haemorrhaging to the tax office is returnable at the end of my trip, I can deal with that. Although if there's a chance for any reason I can't claim that back, I would prefer to be a resident for tax purposes, knowing I'm at least pocketing more money..

[boganbear]

Contact the ATO to get residential status asap to minimise the amount if tax then claim the I raid tax when you leave. From next year all working holiday visas will pay 32% on everything anyway so the Aussie economy has just shot itself in the foot

[Guest GraemeLowe1992]

Contact the ATO to get residential status asap to minimise the amount if tax then claim the I raid tax when you leave. From next year all working holiday visas will pay 32% on everything anyway so the Aussie economy has just shot itself in the foot

 

 

Thanks mate, just one more thing.. Is there any risks of classifying myself as a resident for tax purposes? I heard a possible risk would be a big tax bill at the end of the year

[FTA]

Thanks mate, just one more thing.. Is there any risks of classifying myself as a resident for tax purposes? I heard a possible risk would be a big tax bill at the end of the year

There will only be a tax bill if you haven't paid enough tax.

But given that non-residents have no tax free threshold, and residents do, you will be paying too much tax and should get some back. Speak to an accountant asap to get advice on what deductions you can make during tax time to maximise your return. You should never have a tax bill with the right accountant.

However, declaring yourself as a resident for tax purposes will expose yourself to paying tax on foreign income also. So if you have offshore income, you will pay tax on it unless you are a non-resident.

Having said all of that, residency is quite subjective and the tax man can decide what you are anyway, which will usually depend on whether you owe them money, or if they owe you money!