Students and working holiday visa holder Australian tax year ending June 30th 2016

It is necessary to pay income tax in Australia if you work there.

There are two options, you can obtain an ABN (Australian Business Registration Number) this enables you to work as self-employed, and at the end of the financial year you need to declare your income and relevant business expenses to the Australian tax office

The other option is to get a tax file number (TFN). This means that your employer can withhold some of your salary to pay the government the taxes you are required to pay. You may be eligible to getting some refund on the tax that was deducted depending on how much you earned during the tax year.

If you are a student or a working holiday visa holder working on a TFN you need to lodge your tax return at the end of the tax year, this is on the 30^th of June each year. If you are leaving Australia permanently you can apply for a tax refund at any time.

At present if you are studying or are on a working holiday visa for six continuously and you have been working in one job or living in one place you are considered for tax purposes an Australian citizen. If you stay in Australia for less than six months you may be considered a non-resident.

Working holiday visa holders may not be treated the same as students next year under proposed tax changes in 2017. It is proposed that the current tax free threshold of $18200 be removed in future.

Period 2015 to 2016

The above rates do not include the:

• Medicare levy of 2%
• Temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.

Tax Refunds depend on what you paid and how much you earned and other personal circumstances

At the end of the year you need to ask your employer for a group certificate or payment summary showing your earnings and tax deductions, it is important that your TFN (TAX FILE NUMBER) or your ABN is on the paperwork

If you are leaving the country before the year end you must have stopped working before you lodge your tax return, you need to show the Australian tax office a complete record of your income, and you will need to provide the full details of your bank in order to get the refund.

You will need all this information in order to be able to lodge your tax return this can be done online or by mail. If you need help with the tax return you can contact any one of the Tax companies advertising in https://bbmlive.com/tax-agents-listing/