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What type of taxes are charged on someone with a Working Holiday Visa in Australia?
I am planning on traveling/working in Australia for maybe a year or so (not sure yet) and I am wondering what kind of taxes to expect on my income. I am planning on working in a bar or restaurant, maybe retail. By the looks of it, I would be earning $15-$20/hour (correct me if I'm wrong, that's just what I have seen around the internet). Just trying to budget everything right now! Also, will I need to get an Australian bank account to have money deposited in while I'm there? I am from Canada if that's important. Thanks!
2 Answers
- BrookyLv 71 decade agoFavorite Answer
You'll need an Australian bank account and a Tax File Number (TFN).
On a Working Holiday visa, if you're travelling around without staying in one place for longer than 6 months at a time, you will probably be taxed as a non-resident for taxation purposes. If you'll be staying put for 6 months at a time, you can be taxed as a resident.
http://calculators.ato.gov.au/scripts/axos/AXOS.as...
The tax rate for a non-resident is 29¢ for each $ up to $35,000
The tax rate for a resident is zero up to $6000 and then 15¢ for each $ between $6,001 and $35,000.
When you're working casually and occasionally have high earning weeks, you will sometimes be overtaxed but it will all work out when you lodge a tax return at the end of your stay when you'll get a refund of any overpayment. At the very least, if you are going to be taxed as a non-resident, make sure they take out at least 29% or you'll end up owing the ATO.
http://www.bugaustralia.com/essentials/tax-for-tra... Very useful site for this and much other information about coming to Oz on a WHV.
- toombaLv 71 decade ago
It depends on how much you earn a week. Say you work alot of hours one week - you earn $1000 - that is 52K a year - you will get taxed on that 1K as if you were going to earn 52K. If you only work a small amount of time one week and get $100 thats 5.2K a year which is under the taxable amount - so you will get it all.
Go to the ato site for the actual amount of tax.
Yes you will need a bank account in Australia for the money to be electronically deposited.