With the new year coming in, there have been massive changes in the taxation office in Australia. It is important for a working holiday visa holder or backpacker, either 416 (working holiday) or 462 (work and holiday) to know the implications of these changes. The important questions to ask are:
- How would these changes affect you as a 416/462 visa holder?
- Do you know what tax you are paying?
How to make sure you can maximize refund from backpacker tax return
Any income you earn after 30 dec 2016 is only taxed at 15% if your employer meets certain conditions, as the government has introduced a new legislation on November 2016, the working holiday maker tax rate provision.
For this to apply to you, your employer needs to register as a working holiday visa maker for tax purposes, if they don’t then you might not be able to enjoy the 15% concessional rate.
For example, if you earn $10,000 from 1 July 2016 to 30 December 2016, and you are taxed at 32.5% in that period, from 1 January 2017, as long as your employer meets the definition you would be able to enjoy the 15% concessional tax rate.
If you had bee working since the financial year of 2016/2017, Your employer also needs to provide you with 2 PAYG summaries, one for before 30 December 2016 and one from the 1st of January 2017.
Hence it is vital for you to find a good and professional tax agent and accountant to handle the backpacker tax return as if it is done wrong, you might pay additional 17.5% tax on the income post 1 January 2017.
In addition, as the most responsible and professional accountant and tax agent in Ashfield and Sydney, we would also be able to help you to reduce your tax more through a thorough analysis of your tax position by maximising work related deductible items hence to reduce taxable income and pay lesser tax to ATO, and more money for you to enjoy your holiday in Australia.
If your employer is not registered as working holidaymakers, your income would end up getting taxed at 32.5% for anything until $80,000.
Talk to EndureGo to cut down your backpacker tax to 15%
However, you might be able to rectify the situation by talking to a professional tax expert. At EndureGo Tax, we are a specialist in backpacker tax return, and we will ensure that your hard-earned money is not wasted in paying to the Australian Taxation Office.
To know more about how you can maximise your tax, so you don’t end up paying more than you have to, Visit us at EndureGo Tax, we are a specialist in backpacker tax return, and will help you to maximise your hard earned money through more tax refund.
Disclaimer: The information in this article is general in nature and does not take specific personal circumstances into consideration, hence do not rely on the information in the article but rather seek independent legal, accounting and financial advice.