Tax return on 457 visa

[darren141]

I was wondering if anyone knows what percentage of tax you get back (if any) on the 457 compared to the 417 visa?

 

I've had a search and I can't find anything specific to my situation so thought I'd ask.

 

I'm currently on a 417 WHV and have landed a new job I started about a month ago. I've recently finished my regional work and my 2nd visa kicks in a couple months so I can work for this employer until August 2013. They are thinking about offering me a 457 sponsorship after the new year but this is where my "problem" comes in.

 

I definitely want to take their offer but I'm not sure if it would be financially better for me to hold off until after June before taking them up on it depending if the visas have different stipulations in terms of tax.

 

I done my tax return in July and I got every penny back I'd paid in tax, I've seen various contradicting information online in regard to how much you get back if you're here on the backpacker visa but in my situation I was a resident for tax purposes & over the tax free threshold yet got everything back.

 

So I'm trying to work out if this would be the same case on the 457 as I'd be a resident for tax purposes same as I was on the 417 but still technically not a PR.

 

Any info would be great,

Cheers!

[Rupert]

I cannot imagine how you got your tax back previously, but it sounds like something was wrong somewhere.

 

To your question, visa status and tax status are different, if you were deemed resident on the 417 and deemed resident on 457 then it will make no difference to your tax paid.

[NickyNook]

I cannot imagine how you got your tax back previously, but it sounds like something was wrong somewhere.

 

To your question, visa status and tax status are different, if you were deemed resident on the 417 and deemed resident on 457 then it will make no difference to your tax paid.

 

Sounds strange, doesn't it (earning over the threshhold and yet got all his tax back)?

 

I guess it's possible if the OP had some legitimate tax deductions or rebates that were greater in value than the tax that was due. He can only have earned a little over the threshold - or alternatively somehow managed to claim huge deductions.

 

Certainly agree that tax on a 417 and 457 will be no different.

 

OP: If you're resident for tax purposes, it makes no difference what visa you're on. You get a tax refund if you paid too much tax according to the current tax rules - same as anyone else.

[darren141]

Don't know what to tell you guys, looking online you get sites saying if you're a backpacker you get all your tax back, others saying you get some back and others still saying you get none back. All I know is I was over the threshold by quite a few thousand dollars, still within the 15% tax bracket and every penny I paid was paid back to me minus the tax agents fee. No funny deductions or anything like that. This has been a similar case to other people I know on working holiday visas.

 

But this is partly my problem no one seems to have a clue what's right for the 417 and there's even less info online for the 457 in regard to tax back.

[Rupert]

Don't know what to tell you guys, looking online you get sites saying if you're a backpacker you get all your tax back, others saying you get some back and others still saying you get none back. All I know is I was over the threshold by quite a few thousand dollars, still within the 15% tax bracket and every penny I paid was paid back to me minus the tax agents fee. No funny deductions or anything like that. This has been a similar case to other people I know on working holiday visas.

 

But this is partly my problem no one seems to have a clue what's right for the 417 and there's even less info online for the 457 in regard to tax back.

 

It is a complete fallacy that backpackers do not pay tax / get all their tax back. If you have read this, then it was written by somebody ignorant of tax law.

 

There are no special tax laws for backpackers. People are either resident or non resident and the tax is applied the same (more or less). Many back packers pay more tax if they are considered non resident.

 

And thank you but I for one have a reasonably good idea of how taxes should be applied for 417 and 457 holders, it really is not that hard. You could always try a tax accountant however if still in doubt.

[NickyNook]

But this is partly my problem no one seems to have a clue what's right for the 417 and there's even less info online for the 457 in regard to tax back.

 

Once again. There are no special tax rules that say 417 visa holders will get all their tax back. The fact that you got all yours back means you must have had a creative tax agent - not because you were on a 417 visa.

 

If you really believe you got your tax back because you were on a 417 visa - perhaps you could post a link to the relevant details on the ATO site where it states this.

 

And the reason you can't find any info on 457 visa holders getting tax back would be because there are no special rules for them either ;-)