Jump to content

Claiming back tax when only working for 6 months on 457 visa


Guest BGrimwade1988

Recommended Posts

Guest BGrimwade1988

I am about to leave Australia to go back to the UK. I have a 457 visa and am about to finish a 6 month contract (the only work I have had since being here). As I have only worked for 6 months, am I able to claim back some tax (as I would be entitled to in the UK due to the tax being applied on the basis that you are working for 12 months)?

Link to comment
Share on other sites

Guest BGrimwade1988

Thanks for the link. Do you know if it works out that the rebate you get is roughly half of what you have paid (given that you only work half of the year)?

Link to comment
Share on other sites

Do you know if you were considered resident or not for this period? I believe six months comes into it, but intent also matters and there is an argument that you were non resident. I do not know what the answer is.

 

If you were non resident and taxed as such then you would have been paying a flat tax rate and in which case it does not seem likely that you overpaid, it is a fairly simple calculation that any payroll department would get right.

 

If you were taxed as a resident and ATO decided you were non resident you would actually end up owing tax as non residents do not benefit from the personal allowance or the lower tax bands.

Link to comment
Share on other sites

Guest BGrimwade1988

How would I find out whether I was considered a resident? I believe that I have been paying 20% tax (and 9% super, which I believe I can also claim back).

Link to comment
Share on other sites

How would I find out whether I was considered a resident? I believe that I have been paying 20% tax (and 9% super, which I believe I can also claim back).

 

Well first of all, find out whether you have been taxed as a resident or non resident. You would have ticked a box on a form that your payroll / HR department would have given you when you started work. Do you have a copy? Do they?

 

There is no 20% tax band, so you have not been taxed at a flat rate of this, but possibly it has worked out at about that considering the allowance and rates - this suggests to me you might have been taxed as a resident. You need to get to the bottom of this with your Payroll / HR department.

 

As to whether you should have been taxed as a non resident, this is a more subjective matter and depends upon your situation. Did you come here always knowing it was a six month assignment or did it just not work out? Do you have a home back in the UK? Do you have family here? What have your living circumstances been whilst you have been here e.g. did the company put you up? are you in a serviced apartment, did you move your furniture over?

 

Your super contributions are not a tax and are nothing to do with your tax. As a 457 holder, yes you can request to have these paid back to you.

Edited by Rupert
Link to comment
Share on other sites

Guest BGrimwade1988

I have just found an email from the contracting firm that pays me stating that I am being taxed at the rate of a resident, is that correct? I am working on a 6 month contract through a contracting agency. Both the agency and my employer knew it was only a 6 month deal. I have a home back in the UK and no familly here, and am living in a rented apartment that I arranged for myself. I did not come here to work for this company specifically, I came to Australia then started applying for contract work that suited my visa rules (nothing longer than one 6 months for one employer).

 

Sorry to add another question to this thread, but I have been told that I get taxed 45% on any super that I claim back, and I can only claim it back once I have left Australia. Do you know if this is true?

Link to comment
Share on other sites

I have just found an email from the contracting firm that pays me stating that I am being taxed at the rate of a resident, is that correct? I am working on a 6 month contract through a contracting agency. Both the agency and my employer knew it was only a 6 month deal. I have a home back in the UK and no familly here, and am living in a rented apartment that I arranged for myself. I did not come here to work for this company specifically, I came to Australia then started applying for contract work that suited my visa rules (nothing longer than one 6 months for one employer).

 

Sorry to add another question to this thread, but I have been told that I get taxed 45% on any super that I claim back, and I can only claim it back once I have left Australia. Do you know if this is true?

 

Did you come on a WHV? The 457 visa doesn't limit you to six months with one company. What was your intention, when you moved over to look for work? I would be quite tempted to get a tax accountant to help you with this now. As you have only paid on average 20% tax, the best case scenario is that you would get a very small refund and the worst case is that you would have a relatively large bill (about 9% on everything you have earned, based upon your estimation that you have so far paid about 20% on average) if it is deemed you were not resident.

 

I really don't know the details about getting super back, other than I know you will be able to.

Edited by Rupert
Link to comment
Share on other sites

Guest MM Marc

A tax free threshold of $6000 plus only working 6 months would average out at about 20% tax so it sounds like you have been taxed the correct amount already so it is unlikely you will get much back. you spent half the year working in one place so probably "resident for tax purposes" and if the ATO get stroppy it was an honest mistake. As a tax resident don`t forget to claim you $300 for work related expenses (no receipts/evidence required).

 

http://www.immi.gov.au/allforms/superannuation/

 

Yes you can only claim your super back when you have left the country and your visa has expired or been cancelled. If you have over $5000 of super you will also have to fill in Form 1194 to get a certificate of immigration staus you can also get your visa cancelled on this form if it is still active.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...