tomtam Posted June 9, 2014 Share Posted June 9, 2014 Hi all, I've been in Aus since early January and working since early February. I am on a working holiday visa. When filling in my tax file number form etc, there was a box to tick if I am resident for tax purposes. I wasn't sure what to put, and upon asking my company they said to tick it (I told them I am on a working holiday). It since seems of course, that I am not officially resident for tax purposes on this visa, unless I am stationary for 183 days in the tax year. Sadly I will be about 10 days short of that criteria. So basically I think I've been underpaying tax essentially? I am off to live in NZ as of July. I am told I MUST fill out a tax return for my time in Aus or I will get a fine. But then I will surely alert them to the fact that I have underpaid tax? I would like to keep the door open to be able to work here again, so don't want to leave a black mark on my name. What are people's opinions? Thanks Link to comment Share on other sites More sharing options...
blossom Posted June 10, 2014 Share Posted June 10, 2014 There wouldn't be a black mark on your name, you'll just get a bill. Link to comment Share on other sites More sharing options...
tomtam Posted June 10, 2014 Author Share Posted June 10, 2014 There wouldn't be a black mark on your name, you'll just get a bill. But if I fill in my return as a non-resident, I will owe them thousands. If I was resident for tax purposes, I would be owed a fair bit back. How lenient are they when it comes to meeting the threshold? Some places it is shown as 6 months, others as exactly 183 days. Link to comment Share on other sites More sharing options...
Stacy053 Posted June 10, 2014 Share Posted June 10, 2014 I may be wrong but I don't think the 6 months have to be in 1 tax year. As long as it is 6 continuous months. There is a tool on ATO website to help work it out. EDITED: There is a calculation for the tax fee threshold to take into account exactly this situation. Unlike the UK you do not received the whole threshold amount, nor is it pro-rata. Is it something like $7K + x/month of stay. Up to maximum of $18200. Again, the ATO website can work this out for you. Link to comment Share on other sites More sharing options...
AJ Posted June 10, 2014 Share Posted June 10, 2014 But if I fill in my return as a non-resident, I will owe them thousands. If I was resident for tax purposes, I would be owed a fair bit back. How lenient are they when it comes to meeting the threshold? Some places it is shown as 6 months, others as exactly 183 days. Thousands? Surely cant be that bad if you only been working for them for 6 months! Link to comment Share on other sites More sharing options...
tomtam Posted June 10, 2014 Author Share Posted June 10, 2014 Thousands? Surely cant be that bad if you only been working for them for 6 months! If you are not resident for tax purposes then you get no tax free allowance right? So 5 months I should have been getting taxed on the first $18k of my annual pay? Not quite sure how to work it out correctly? Perhaps $1.5k per month ($18k divide by 12) x 5 months = $7.5k is what I haven't been taxed on but should have been? So 32% of that is $2400? Link to comment Share on other sites More sharing options...
tomtam Posted June 10, 2014 Author Share Posted June 10, 2014 But if I fill in my return as a non-resident, I will owe them thousands. If I was resident for tax purposes, I would be owed a fair bit back. How lenient are they when it comes to meeting the threshold? Some places it is shown as 6 months, others as exactly 183 days. According to the ATO test, I am resident then... But it's a bit of a grey area. The 6 month question asks 'do you intend' to stay for 6 months or more. My intention when filling out my tax form certainly was so, however life changes... I guess my best bet is just to file the tax return next month anyway. Link to comment Share on other sites More sharing options...
AJ Posted June 10, 2014 Share Posted June 10, 2014 Are you an Australian resident for tax purposes? Generally, we consider you to be an Australian resident for tax purposes if you: have always lived in Australia or have come to Australia to live have been in Australia for more than half of the income year (unless your usual home is overseas and you don't intend to live in Australia - for example, you are a working holidaymaker), or are an overseas student enrolled in a course of study of more than six months duration. This is from the ATO website hope it helps Link to comment Share on other sites More sharing options...
tomtam Posted June 10, 2014 Author Share Posted June 10, 2014 Thanks AJ, I've seen that before but upon doing their test I get different results due to other criteria not listed above. Link to comment Share on other sites More sharing options...
AJ Posted June 10, 2014 Share Posted June 10, 2014 Oh well, if you got to pay you got to! At least you can come back without any worries, they will probably let you pay a big amount up. Dont you know anyone else who's been on a WHV that can tell you? Link to comment Share on other sites More sharing options...
tomtam Posted June 10, 2014 Author Share Posted June 10, 2014 Not in the same situation, no! Link to comment Share on other sites More sharing options...
blossom Posted June 10, 2014 Share Posted June 10, 2014 Pop into your local tax office and ask. They are very helpful. Link to comment Share on other sites More sharing options...
sinob Posted June 10, 2014 Share Posted June 10, 2014 Yes I agree 100% with Blossom, ring or call into the ATO. They are very helpful. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.