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Tax Practitioners Board

Understand your tax residency

If you're on a Working Holiday visa, you can absolutely be an Australian resident for tax purposes. That doesn't mean you're Australian.

Potential savings

If you qualify as an Australian resident for tax purposes, you could be entitled to up to $2,462 back in refund on an income of $45,000. We assess your eligibility when preparing your tax return.

Working Holiday Maker (417/462)

Taxable incomeTax on this income
$0 - $45,00015%
$45,001 - $135,000$6,750 + 30%
$135,001 - $190,000$33,750 + 37%
$190,001+$54,100 + 45%

Australian Resident for tax purposes

Taxable incomeTax on this income
$0 - $18,200Nil
$18,201 - $45,00016%
$45,001 - $135,000$4,288 + 30%
$135,001 - $190,000$31,288 + 37%
$190,001+$51,638 + 45%

Resident classification

Can you be an Australian resident for tax purposes?

Working Holiday visa holders may be classified as Australian residents for tax purposes if they meet all of the following conditions:

1

You hold a passport from one of the NDA countries: United Kingdom, Germany, Japan, Chile, Finland, Israel, Norway, Turkey.

2

Your ordinary place of residence is in Australia.

3

You have an intention to live in Australia.

4

You stay in Australia for a cumulative 183 days in the tax year.

๐Ÿ“… The Australian tax year runs from 1 July to 30 June.

๐ŸŽ“ Student visa (500) holders are generally treated as residents for tax purposes.

Frequently asked

Tax residency questions

What is tax residency?

Tax residency determines which tax rates apply to your income in Australia. There are three categories: non-resident, working holiday maker (417/462 visa), and Australian resident for tax purposes. Each category has different rates and thresholds.

What about student visa (500) holders?

Student visa (500) holders are generally treated as Australian residents for tax purposes, meaning they benefit from the $18,200 tax-free threshold and lower marginal rates.

Now that you understand your residency, continue filling out your tax return.