Are you a backpacker, and is looking for a professional tax agent or accountant to help you with the tax return hence you can maximize your tax refund. Read on, as we will show you the fundamental ways in which you need to know in order to maximize your tax refund.
EndureGo Tax is one of the most professional and trustworthy accountant and tax agent in Sydney and Adelaide, and had helped many people in improving and maximizing their tax refund throughout the years.
In 2015, backpackers in Australia had reached the number of six hundred thousand people, with the purposes of either traveling or working or even both. In order to be able to get the working permit, the evidence suggested that most of them would be required to hold working holiday visa (subclass 417) or working and holiday visa (subclass 462).
Before 1 January 2017, the tax rate had been proposed to be 32.5% from the first dollar they make. After that, the Australian Taxation Office (ATO) has conducted some adjustments regarding the legislation for both working holiday makers visa.
Maximize tax refund for backpacker
Firstly, the tax rate for first $37,000 they make will be reduced to 15% (twice lower than the previous proposed rate). The wage above the $37,000 will be charged at the non resident tax rate. However, the significant change is that in Fy2016-2017, Australian Government defines all backpacker on the backpacker visas as non tax resident, however, in their website as at May 2018, they had illustrated examples where some backpackers if they meet the conditions would be able to justify themselves as tax resident. For example if a backpacker earns $37,000, and he can be defined as tax resident, then his tax without medicare levy is $3,127, however, it is important to seek confirmation via a private ruling through the ATO to confirm your tax resident position, and EndureGo Tax is highly experienced in helping clients in seeking clear outcome via a tax private ruling through the ATO. If the backpacker can not be defined as a tax resident, then the tax would be $5,500, the difference would be $2,423.
Also it is important for the backpacker to review their PAYG or group certificate to see that your employer has properly marked down you are a backpacker, else your income from the first dollar will be subject to 32.5% tax rate. The secret is seeing whether there is a H marked down next to the income in the group certificate.
Hence if you are a backpacker, please feel free to give us a call on 0410-829-900 or email us to firstname.lastname@example.org, and we will endeavor to assist you with the issue of maximizing your hard earned money via more refund at the tax time.