Tax return for 820 visa query

[Guest JayLetts2011]

I came to Australia on a working holiday visa and i know with that visa you pretty much get all your tax back because your not a citizen or on a permanent visa... now i am on my 820 partner visa whats the tax return on this visa as i am still not fully permanent and this is a temporary visa for 2 years then i go on a permanent, do i get all tax back like working holiday? any help would be appreciated, i know its early to think about tax return but like to plan ahead so that we can buy or save

[Andrew from Vista Financial]

Hi Jay

 

It is not a case that everyone is automatically entitled to their tax back, it is generally a case of people have only worked part of the year and their total income falls in a lower overall bracket than they have been taxed at along the way.

 

Employers pay tax on the basis of every pay is assumed to be the pro-rated amount that you will get on an annual basis and therefore tax accordingly if you do not receive a years pay then this is where tax may have been overpayed hence where people may receive their tax back (very common for working holiday visa holders).

 

It is no different for a temporary or permanent visa (assuming both are tax residents) tax is due on the overall income amount earned from your Australian employer thus if you are working on a set wage for the full year the tax should be about right (excluding any other tax deductions/offsets you may be entitled too).

 

If you are only working part of the year there is likely to be some tax overpayments to the ATO by the employer/s.

 

These links may help: http://www.ato.gov.au/Rates/Individual-income-tax-rates/ & http://www.ato.gov.au/Individuals/Income-and-deductions/Offsets-you-can-claim/

 

Regards

 

Andy