WHV - tax with ABN etc

[Mleadley]

Hi

 

I'm on a 417 working holiday visa at the moment and I'm working as a subcontractor with my own ABN so I have to pay all my own taxes.

 

Ive been paid for around 15 weeks work through an ABN and I've consistently put aside 20% of my earnings for tax purposes.

 

I'm wondering how much you have to earn in order to be taxed if your self employed? I've heard a few differing opinions with some saying you don't have to pay any tax if you earn under $18000 for the financial year and others saying you have to pay 29% on everything you earn.

 

Can anyone offer and clarity on this? I'll most likely be heading back to UK at the end of the financial year and I'm keen to know if il have to pay any tax and if so how much.

 

Thanks

[Ozmaniac]

If you're a Resident for Tax Purposes and earn less than $18,200 in a FY, no tax is payable. If however you are not an RFTP, you must pay tax on every cent you earn starting at 32.5 cents in the dollar for the first $80,000. Some people on WHVs are RFTP and some are not. The following will help you determine your status:

http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=Resident.XR4&go=ok

[Mleadley]

Thanks for your reply.

 

I completed the questionnaire and it says im a resident for tax purposes, as I live with my family and have been living with them for 6 months.

 

As for the tax return, how are the tax office notified of how much I have earned during the financial year? Is it just based on the information I give them or do they cross reference my ABN with all the other businesses who I have invoiced? Also is it just a case of I don't pay any tax, or do I have to pay it and they give me it back?

 

Just want to make sure that if I leave immediately after the financial year that there wont be any follow ups that may refuse me entry later down the line.

 

Thanks

[blossom]

You can do your tax return online, any time after July 1st. You do the tax return no matter what you have earnt and then either get a bill or a rebate.

The first $18k is tax free, then anything over that is taxed at the next rates.

Just keep the money to one side and then when you do your tax return you will find out just about straight away what you owe.

[Marisawright]

As for the tax return, how are the tax office notified of how much I have earned during the financial year? Is it just based on the information I give them or do they cross reference my ABN with all the other businesses who I have invoiced? Also is it just a case of I don't pay any tax, or do I have to pay it and they give me it back?

 

 

 

Blossom is right. Do the tax return and submit it online and it will tell you how much tax you owe straight away.

 

The tax office may or may not cross reference but it's probably not worth taking the risk!

[MARYROSE02]

Consider seeing a tax agent like H & R Block for help with yr tax return.

[Alan Collett]

Consider seeing a tax agent like H & R Block for help with yr tax return.

 

 

Consider seeing a tax agent that understands the residency position and the special tax treatment afforded to temporary visa holders who are tax resident in Australia.

 

The fees of a registered tax agent are tax deductible in Australia, but this tax deduction only has a financial benefit if you have income that is generating a tax liability in Australia.

 

Best regards.

[AJ]

 

Consider seeing a tax agent like H & R Block for help with yr tax return.

They are rubbish, full of tax agents that have just done a short course and dont know half of what you can claim for, or give you wrong information.