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EmilyK

Please help! Paying UK tax on a 457 visa

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Hi there,

I'm hoping someone may be able to give me a bit of help and advice. I've recently moved to Aus on a 457 visa. I am sponsored by our UK entity however we have an Australian entity setup but for some reason as the Aus entity was new, I was sponsored by the UK. My company are now saying that they cant pay me via Aussie payroll without transferring my visa so have continued to pay me through the UK payroll with tax, NI deductions, pension etc. I'm a bit confused by this as it means I have to transfer money each month and am paying for benefits (NI etc) that i'm not able to use in Aus. I thought that the Aussie govt would want me to be paying tax in Aus but my company says they cannot facilitate this. Is this a problem or likely to cause me a problem in the future with future visas, tax etc? (other than the admin headache of the monthly transfer)

I dont think my company know too much about what they are doing (first Aussie employee) and I dont want this to get too complicated or cause me any future problems with extending visas, paying tax twice etc! Obviously transferring my visa to another entity is risky with the changes to the 457 etc, I have a feeling this may end up not being straight forward!

Many thanks in advance

Emily

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I googled it, I never new a UK company could sponsor someone for a 457!

 

 

Edited by AJ

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Apparently they can! I thought my sponsor would be our new Australian entity but apparently it's our London entity that is my sponsor but we had to create the Australian entity for future Australian business (I'm expanding the business out to Aus as we now have a number of Aussie clients and more in the pipeline). I don't understand exactly how it works to be honest, was so happy at the time the visa went through and it was managed by a migration agent so didn't ask the 'how' type questions, just the 'when'! Just not sure about the UK payroll bit because surely the point of allowing businesses to expand to Australia is for them to pay tax and generate jobs.


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A UK company can operate an Australian payroll - they don't have to use the Australian entity to do this.

=>  The UK company should seek a PAYG only registration from the ATO.

Feel able to contact me via a PM or email (click on my name to the left of this post) if you need some formal assistance with this.

Best regards.

  • Like 1

Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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14 hours ago, AJ said:

 

I googled it, I never new a UK company could sponsor someone for a 457!

 

 

Yes, it is possible to be an overseas business sponsor under the 457 visa program.

Best regards.

  • Like 1

Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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A UK company can operate an Australian payroll - they don't have to use the Australian entity to do this.
=>  The UK company should seek a PAYG only registration from the ATO.
Feel able to contact me via a PM or email (click on my name to the left of this post) if you need some formal assistance with this.
Best regards.

Thank you very much Alan, this is really helpful. I'll discuss this with my company when the UK comes online and contact you if they need clarification.

Emily


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I would have thought that they should be paying you in AUD and making returns to the ATO, super etc.

You won't pay tax twice as there is a duble taxation agreement.

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