 Tax Back Australia
Tax information for holiday makers
Welcome to Australia
We hope you enjoy your working holiday. This information briefly explains how our tax system will affect you.
Tax Back Refund Information
Click here for more information on getting a tax refund after you have been working in Australia for more than 6 months.
Before you start work in Australia, you must have permission from the Department of Immigration and Multicultural and Indigenous Affairs (DIMIA). (Phone 13 18 81)
Starting work in Australia
When you start work, you should complete a Tax File Number Declaration form and give it to your employer. Among other things, the form asks for your:
- Australian tax file number, and
- residency status.
If you do not give your tax file number to your employer you will be taxed at the maximum rate—47c plus the Medicare levy (1.5c) for every dollar of income—close to half of every dollar you earn.
Resident or non-resident?
Most working holiday-makers are not taxed as Australian residents. However, if your behaviour in Australia reflects a degree of continuity, routine or habit consistent with residency, you may be taxed as an Australian resident.
If you are unsure about your residency status, you can check at our website <www.ato.gov.au> in the Search box choose 'All ATO (except Legal database)', in the for box type 'resident'.
Important: references to residence on your visa refer to your immigration status, not your tax status.
Applying for a tax file number
If you have arrived in Australia on a working holiday visa, you can apply for a tax file number using the internet. This means you do not have to visit the Tax Office or provide proof of identity.
If your application is successful, we will send you a letter with your tax file number. Make sure your application has an address in Australia where you can collect mail.
To register for a tax file number, go to <www.ato.gov.au>. (select For Individuals, then 'Apply for a tax file number' on the menu).
If you don't have internet access, phone us on 13 28 61 to find out how you can register for a tax file number.
How much tax will I pay?
Your tax depends on how much you earn, whether you have a tax file number and give it to your employer, and whether you are a resident for tax purposes.
If you give your tax file number to your payer and you are a non-resident, you will be taxed on your Australian earnings at the following rates:
Non-resident tax rates (as of 1st July, 2003)
Weekly earnings ($AUD) |
Rate of tax |
$0–$414 |
29 cents for each $1 (maximum $120) |
$415–$999 |
$120 + 30 cents for each $1 over $414 (maximum $295) |
$1,000–$1,200 |
$295 + 42 cents for each $1 over $999 (maximum $379) |
$1,201 and over |
$379 + 47 cents for each $1 over $1,200 |
| * Information may change without notice |
If you start work before getting your tax file number, you have 28 days to give it to your employer. During this time you will be taxed at normal non-resident rates (shown above). If, after that, you haven't given your employer your tax file number, they must take the maximum amount of tax from your pay.
Employers send the tax they withhold from your pay to the Tax Office on a regular basis; when you lodge your tax return we will give you a credit for this withheld tax.
Earning interest
Your bank or financial institution in Australia is required to withhold tax from interest on your account if you don't give them your tax file number. Tax will be withheld at the rate of:
- 48.5% if you are an Australian resident
- 10% if you are a non-resident and you give the institution your overseas address.
If you are a non-resident, you do not have to declare this interest on your tax return.
Ending work
When you stop work, ask your employer for a payment summary showing your total income and the tax withheld from it. You will need a payment summary from every place you worked during the year (in Australia) to complete your tax return.
The Australian tax year starts on 1 July and ends on 30 June and employers must issue payment summaries in the first two weeks of July.
If you work during two income years, you should receive a payment summary for the first income year in July. When you stop working, you can ask your payer for a second payment summary for the period from 1 July to the date that you stop working.
If you are travelling within Australia, make sure you give each of your employers an address where they can send your payment summary at the end of each income year.
Lodging an Australian tax return
You must lodge a tax return for each income year (or part year) that you work in Australia. At the end of the tax return, you must sign a declaration that all the information you have provided is correct. The final date for lodgment is 31 October each year.
After you lodge your tax return, we will send you a notice of assessment advising you how much tax you must pay or whether you will receive a refund. It can take up to six weeks to process your tax return, so make sure the address you give on your tax return will be current when we send out your notice of assessment .
You can lodge your tax return:
- online, using e-tax
- on paper, or
- by having a registered tax agent complete and lodge the return for you.
Use a registered tax agent
You can use a registered tax agent to prepare and lodge your tax return for a fee. A WHM specialist tax agent can be found at <www.backpackertaxrefund.com> or you can check with the Tax Agents' Board on 1300 362 829.
PLEASE NOTE
You will need to find a Specialist in Working Holiday Maker and Business Sponsorship tax refunds.
Superannuation
If your monthly wage is more than $AUD450, your employer must contribute an amount equal to 9% of your wage into a superannuation account for you.
Australians generally cannot access these contributions until they reach retirement age. However, if you entered Australia on an eligible temporary resident visa you can, in most cases, access your contributions earlier, although the money will be taxed.
For information about applying for your superannuation savings in Australia, see the Temporary residents access to superannuation page at <www.ato.gov.au/super>
Tax evasion
Tax evasion is an offence, so you should avoid organisations that may be involved in evading tax. An organisation that offers to pay you 'cash in hand' which means they do not intend to deduct tax from your payments or provide you with any receipt or confirmation of payments you receive from them – could be involved in tax evasion. You can report these organisations to our Tax Evasion Referral Centre on 1800 060 062.
If you need more information you can:
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