Visa 489 - is this considered temporary resident for tax purposes

[Laura Fawbert1]

Hi,

On a 489 visa which expires in dec 2016.

 

Doing my first Aus Tax return and totally confused on whether I'm considered temporary resident or not, when it comes to the declaration of a small amount of UK income - BS interest.

 

in ato gov related site :

 

https://www.ato.gov.au/individuals/international-tax-for-individuals/in-detail/foreign-income-of-australian-residents/foreign-income-exemption-for-temporary-residents---introduction/

 

It would appear that as I'm living and working in Adelaide fulltime then I'm considered a resident for tax purposes

But it then goes onto state

 

 

 

• If you're an Australian resident for tax purposes:
  
  • You generally have to declare all income you earned both in Australia and internationally on your tax return.
    
  • However, if you have a temporary visa you're a temporary resident – this means most of your foreign income is not taxed in Australia and you don't declare it on your Australian tax return. You only declare income you derive in Australia, plus any income you earn from employment performed overseas for short periods while you are a temporary resident of Australia.
    

   

   

   

   

   

 

 

 

 

 

• The Migration Act provides that a temporary visa is a visa to travel to and remain in Australia:
  
  • during a specified period
    
  • until a specified event happens
    
  • while the holder has a specified status.
    

   

   

   

   

   

   

 

The 489 is for a specific 4 year period so seems to put me in the temporary visa category which i take as meaning I don't have to declare UK income, but can't find it detailed anywhere, to confirm

 

Any 489 visa holders out there who have dealt with this ?

 

Cheers

Laura

[VERYSTORMY]

If you are living in Australia you are almost certainly resident for tax purposes. Visas don't have much to do with it - even 457 holders who are on a true temporary visa are resident. Your visa is provisional as well - not temp

[Bungo]

You are resident for tax purposes and you must declare your worldwide include.

 

The holders of some temporary visas, like a 457, are resident for tax purposes but have a concession whereby they do not need to declare worldwide income. This concession is not available to holders of other non permanent visas like the first stage partner visa for example as this is expected to become a permanent visa. I am almost certain it would not apply to you either for the same reason and indeed your visa is not temporary, it is provisional.

 

ETA: By the way, you really do not want to be a temporary resident for tax purposes. You would be absolutely hammered with tax on Australian income, even if you did save on the tax on UK interest.

[Alan Collett]

To correct the comments above:

 

> Yes, a subclass 489 visa is a temporary residency visa.

 

> Yes, you can make use of the exemptions available to temporary visa holders who are tax resident in Australia.

 

Best regards.

[Ignatius J]

I am a 489 visa holder,

While submitting my tax return, I have found some information in identifing the residency status for tax purposes.  Go through the link below.

https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency/?=redirected

In the the web site, there is a tool to find it out, Use Are You a resident? decision tool.

The below link can also provide more info while lodging a tax return:-

https://www.ato.gov.au/Individuals/IND/mytax2017/Personalise-return/?page=1#Can_t_see_an_item_to_select_.

Tax slabs berak up:

https://www.ato.gov.au/general/new-legislation/in-detail/direct-taxes/income-tax-for-individuals/targeted-personal-income-tax-cut/

 

Regards

Ignatius

[Ken]

On ‎24‎/‎10‎/‎2015 at 17:33, Bungo said:

ETA: By the way, you really do not want to be a temporary resident for tax purposes. You would be absolutely hammered with tax on Australian income, even if you did save on the tax on UK interest.

Temporary residents pay the same tax on Australian Income as Permanent residents, you are clearly getting them confused with Non residents (who do get hammered with tax on Australian income). You first have to work out if you are a resident or a non-resident (that determines how you are taxed on your Australian income) and then if you find you are a resident you then need to work out if you are a permanent resident or a temporary resident (as that determines how you are taxed on your foreign income). While the ATO don't have to follow Immigration's notion of who is a permanent vs. who is a temporary resident a 457 holder shouldn't be paying tax on their foreign income.