Tax Residency Explained
Understanding your tax status in Australia
The population in Australia is divided into three groups of taxpayers: non-residents, working holiday maker (417/462), and Australian residents. Below are the differences in the tax rates between the two relevant groups.
Australian residents for tax purposes
| Taxable income | Tax rate |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | $4,288 + 30% |
| $135,001 – $190,000 | $31,288 + 37% |
| $190,001+ | $51,638 + 45% |
Working Holiday visa for tax purposes
| Taxable income | Tax rate |
|---|---|
| $0 – $45,000 | 15% |
| $45,001 – $135,000 | $6,750 + 30% |
| $135,001 – $190,000 | $33,750 + 37% |
| $190,001+ | $54,100 + 45% |
If you are classified as an Australian resident for tax purposes, you may be entitled to receive the difference of $2,462 back as a tax refund on an income of $45,000.
Can you be taxed as a resident?Working Holiday visa holders (417/462) may be considered
Working Holiday visa holders (417/462) may be considered
Australian residents for tax purposes
if they meet all of the following conditions:
✓
Visa obtained on a passport from one of the NDA Countries
✓
The ordinary place of residence is in Australia.
✓
There is an intention to live in Australia.
✓
Stay in Australia for a cumulative 183 days in the tax year.
NDA Countries:
ChileFinlandGermanyIsraelJapanNorwayTurkeyUnited Kingdom
The tax year runs from the 1st of July to the 30th of June.
Student visas (500) are treated as residents for tax purposes.