Am I an Australian Resident for tax purposes?

The rules around residency changed in 2017, and apply to all income earned after the 1st Jan 2017.

In particular, these changes affect the tax treatment of income for people on ‘Backpacker’ Working Holiday Visas, (417 or 462)

According to these new rules, people who come to Australia for a working holiday or visit are not Australian residents.

This is because most backpackers, consistent with their visa requirements, do not intend to stay in Australia, but only intend to have a holiday while working some of the time. From 1 January 2017, the first dollar of income earned by backpackers in Australia is taxed at the working holiday maker tax rate of 15% up to $37,000 in an income year. This is regardless of residency status.

Employers of Working Holiday Makers are required to register, and provide a Payment Summary ‘Type H’, for all applicable employees.

See what you need to lodge

I’m on a working holiday visa and….

I worked only before the 31st Dec 2016 – You can provide a payment summary or final payslip to show your earnings.

I worked only after the 1st Jan 2017 – You will need a Payment Summary Type H from your employer(s)

I worked both before, and after the 31st Dec 2016 – you will need payment summaries for work before the 31st, and ‘Payment Summary Type H’ for work after. This will include any instances where you have worked for the same job spanning both these periods. This job will need to produce two separate payment summaries for before, and after 1st Jan.

If you have not received a Payment Summary Type H for work done after the 1st Jan, your employer will need to produce one for you, information on employer requirements is found here