TonyMedge Posted February 10, 2016 Share Posted February 10, 2016 I read very little on here on the initial tax implications for migrant workers or people who wish to settle in Oz. My son has been travelling and working in Australia (whm visa) for a few months now. He has now been offered a long term job which will allow him to apply for his 457 visa. However the tax he will have to pay as a non resident means he simply cannot afford to take the job, pay the 32% tax rate and have a sustainable life while he works to achieve full residency status. If my son has his facts correct then I think it is a good idea that the Australian government protects the existing work force and residents this way. However for a non resident trying to live for a few years paying 32% tax must be very difficult. What is the experience of regular users on this site of the high rate of tax you have had or have to pay before residency is granted? Quote Link to comment Share on other sites More sharing options...
Jazzcrave Posted February 10, 2016 Share Posted February 10, 2016 I read very little on here on the initial tax implications for migrant workers or people who wish to settle in Oz. My son has been travelling and working in Australia (whm visa) for a few months now. He has now been offered a long term job which will allow him to apply for his 457 visa. However the tax he will have to pay as a non resident means he simply cannot afford to take the job, pay the 32% tax rate and have a sustainable life while he works to achieve full residency status. If my son has his facts correct then I think it is a good idea that the Australian government protects the existing work force and residents this way. However for a non resident trying to live for a few years paying 32% tax must be very difficult. What is the experience of regular users on this site of the high rate of tax you have had or have to pay before residency is granted? Hey mate, I can understand where you coming from, but there's no difference between %age a resident or non resident pays its calculated on the amount earned. However on 457 your son will be offered a minimum pay of $51400 could be more depends on his negotiation skills n the type of work he does. Govt protects the rights of non resident be student or skilled worker, if he is been told to pay his own tax out of pocket then I guess there is a need to rethink his decision or consider finding an employer who does it fair. He he can fill expression of interest on Dibp website and employers looking for particular employee will continue bract and hire him. just giving options if in case he needs to rethink. Quote Link to comment Share on other sites More sharing options...
Nemesis Posted February 10, 2016 Share Posted February 10, 2016 I read very little on here on the initial tax implications for migrant workers or people who wish to settle in Oz. My son has been travelling and working in Australia (whm visa) for a few months now. He has now been offered a long term job which will allow him to apply for his 457 visa. However the tax he will have to pay as a non resident means he simply cannot afford to take the job, pay the 32% tax rate and have a sustainable life while he works to achieve full residency status. If my son has his facts correct then I think it is a good idea that the Australian government protects the existing work force and residents this way. However for a non resident trying to live for a few years paying 32% tax must be very difficult. What is the experience of regular users on this site of the high rate of tax you have had or have to pay before residency is granted? On a 457 he will be tax-resident in Australia and will pay the same tax as the rest of us. Quote Link to comment Share on other sites More sharing options...
TonyMedge Posted February 10, 2016 Author Share Posted February 10, 2016 (edited) pay the same tax as the rest of us We were under the impression that as a non resident he had to pay 32.5% on every dollar earnt unlike residents who pay no tax up to $18200, then 19% up to $37000 and then 32.5% above that. Edited February 10, 2016 by TonyMedge spelling Quote Link to comment Share on other sites More sharing options...
NicF Posted February 10, 2016 Share Posted February 10, 2016 We were under the impression that as a non resident he had to pay 32.5% on every dollar earnt unlike residents who pay no tax up to $18200, then 19% up to $37000 and then 32.5% above that. On a WHV I believe this is correct, however if he was to be sponsored on a 457 visa he would be considered resident and would get a tax allowance. Quote Link to comment Share on other sites More sharing options...
Chillers Posted February 10, 2016 Share Posted February 10, 2016 (edited) The first 18k is tax free, then goes to 19% for every dollar earned between 18k and 37k then the tax increases to 32.5% on every dollar earned over that and so on. 457 visa holders are classed as residents when it comes to tax. Trust me im on a 457 as a defacto and self employed. Chances are his employer will start deducting a calculated tax from the beginning based on his expected yearly salary. It's likely he will overpay on tax by the end of the tax year and be entitled to tax back. Edited February 10, 2016 by Chillers Quote Link to comment Share on other sites More sharing options...
TonyMedge Posted February 10, 2016 Author Share Posted February 10, 2016 Thank you for the advice . It is the reason why these forums are so valuable to all of us. To share experiences and help one another. Quote Link to comment Share on other sites More sharing options...
Chillers Posted February 10, 2016 Share Posted February 10, 2016 This calc will also help you determine if you are a resident for tax purposes. Quote Link to comment Share on other sites More sharing options...
wrussell Posted February 10, 2016 Share Posted February 10, 2016 Thank you for the advice . It is the reason why these forums are so valuable to all of us. To share experiences and help one another. The minimum salary for 457 employee is currently $53900 an some of the other information posted was also wrong. I advise all prospective 457 applicants to seek advice independently of whoever is acting or a prospective employer. Quote Link to comment Share on other sites More sharing options...
ac123 Posted February 10, 2016 Share Posted February 10, 2016 How about the 4 year temporary residence visa, 489 i think. Skilled but state sponsored, are you concidered a resident for tax purposes or is your tax bracket higher until residence is granted. OP thanks for a very good question Quote Link to comment Share on other sites More sharing options...
NickyNook Posted February 10, 2016 Share Posted February 10, 2016 How about the 4 year temporary residence visa, 489 i think. Skilled but state sponsored, are you concidered a resident for tax purposes or is your tax bracket higher until residence is granted. OP thanks for a very good question See Post #8.. Quote Link to comment Share on other sites More sharing options...
ac123 Posted February 10, 2016 Share Posted February 10, 2016 We right past that without realising it was a link. Thank you Quote Link to comment Share on other sites More sharing options...
Dazken Amac Posted February 11, 2016 Share Posted February 11, 2016 Incase you are a seaman (CREW OF A SHIP) and are sailing on merchant ships, do you have any tax exemptions as per the Australian tax code ? Also why does the section 23 AF / 23 ag not apply to us ? Being a high salary and being away from family incurs a tax of around 2 months salary? IS there any way we can get a rebate, or maybe part of the salary is exempted for tax purposes. Quote Link to comment Share on other sites More sharing options...
Dazken Amac Posted February 11, 2016 Share Posted February 11, 2016 Incase while emigrating and bring say 1,50,000 AUD to Australia, are those included in my tax returns for that year? Quote Link to comment Share on other sites More sharing options...
blossom Posted February 11, 2016 Share Posted February 11, 2016 Incase while emigrating and bring say 1,50,000 AUD to Australia, are those included in my tax returns for that year? No. Only income from once you become a tax resident. Quote Link to comment Share on other sites More sharing options...
blossom Posted February 11, 2016 Share Posted February 11, 2016 Hey mate, I can understand where you coming from, but there's no difference between %age a resident or non resident pays its calculated on the amount earned. However on 457 your son will be offered a minimum pay of $51400 could be more depends on his negotiation skills n the type of work he does. Govt protects the rights of non resident be student or skilled worker, if he is been told to pay his own tax out of pocket then I guess there is a need to rethink his decision or consider finding an employer who does it fair. He he can fill expression of interest on Dibp website and employers looking for particular employee will continue bract and hire him. just giving options if in case he needs to rethink. This is incorrect. It all goes by if you count as a resident for tax purposes (not on your visa). Most backpackers don't (although some doing a second year and a second six months for the sake employer do) and are taxed at a higher rate. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted February 11, 2016 Share Posted February 11, 2016 I read very little on here on the initial tax implications for migrant workers or people who wish to settle in Oz. My son has been travelling and working in Australia (whm visa) for a few months now. He has now been offered a long term job which will allow him to apply for his 457 visa. However the tax he will have to pay as a non resident means he simply cannot afford to take the job, pay the 32% tax rate and have a sustainable life while he works to achieve full residency status. If my son has his facts correct then I think it is a good idea that the Australian government protects the existing work force and residents this way. However for a non resident trying to live for a few years paying 32% tax must be very difficult. What is the experience of regular users on this site of the high rate of tax you have had or have to pay before residency is granted? Hello Tony. You can be a tax resident of Australia while holding a 457 visa - indeed most are. The situation will be different for subclass 417 Working Holiday visa holders from the 1st of July, 2016 - many of whom have been incorrectly claiming they were tax residents of Australia, when the pattern of their movements around Australia meant they should have been taxed as non residents. http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview201516/Holiday Best regards. Quote Link to comment Share on other sites More sharing options...
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