working holiday visa and how it affects tax return if changed to partner visa

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working holiday visa and how it affects tax return if changed to partner visa


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Old 03-24-2014, 05:34 AM
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Question working holiday visa and how it affects tax return if changed to partner visa

Hi guys,

My bf is on a working holiday visa at the moment and we are planning to get married quickly as we have a kid coming along.
So we are planning to apply for the partner visa sometime soon but we are trying to figure out how this would affect the tax return and to maximise the return.
If he's on a working holiday visa he's able to get most of the return back, is this correct?
However, if he successfully get switch over to a partner visa does that mean his tax get withheld like a resident/citizen taxpayer would?


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Old 03-24-2014, 05:52 AM
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Quote:
Originally Posted by js2014 View Post
Hi guys,

My bf is on a working holiday visa at the moment and we are planning to get married quickly as we have a kid coming along.
So we are planning to apply for the partner visa sometime soon but we are trying to figure out how this would affect the tax return and to maximise the return.
If he's on a working holiday visa he's able to get most of the return back, is this correct?
However, if he successfully get switch over to a partner visa does that mean his tax get withheld like a resident/citizen taxpayer would?
Tax rules apply the same to anyone in Australia if the income is earned from an Australian source. Tax should be withheld from the income he works on his working holiday visa if he earns above the tax free threshold. Nothing will change on the partner visa.

If he's paid too much tax, he'll get his return no matter what type of visa he is on.

At least this is my understanding.

__________________
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Partner Nationality: Denmark
Applied: Online in Australia
Application Date: 2 March 2014
Police Checks: Submitted with Application
Medicals: Completed before application 14 February 2014 .
VISA GRANTED: 31 March 2014 (straight to 801)

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Old 03-24-2014, 06:29 AM
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Hi! I was on a WHV before getting married and applying for my partner visa last year. I was on a BVA when filing tax returns.

What matters if you are an "Australian resident for tax purposes." Depending on when you become an Australian resident for tax purposes, the tax-free threshold is changed. Last year, the Australian citizen tax-free threshold was at something like $18,000--mine ended up being $16,000 something. The tax-free threshold is LOWER for non-residents, which results in paying more tax. See: Claiming the tax-free threshold | Australian Taxation Office

I'm so sorry that I can't remember this, but I believe I became an Australian resident for tax purposes either when I got married, or when I applied for the visa. There are a few online resources to help you work out "when." I suggest starting here, which has a "are you an Australian resident for tax purposes" quiz: Are you an Australian resident for tax purposes? | Australian Taxation Office

Hope that helps!


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Old 03-24-2014, 07:46 AM
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Quote:
Originally Posted by js2014 View Post
Hi guys,

My bf is on a working holiday visa at the moment and we are planning to get married quickly as we have a kid coming along.
So we are planning to apply for the partner visa sometime soon but we are trying to figure out how this would affect the tax return and to maximise the return.
If he's on a working holiday visa he's able to get most of the return back, is this correct?
However, if he successfully get switch over to a partner visa does that mean his tax get withheld like a resident/citizen taxpayer would?
It can be abit tricky for some to understand so will try and explain it as best as I can.

Firstly, a resident for immigration purposes and a resident for tax purposes can be 2 different things.

There are 2 different things that determine if you are a resident for tax purposes being 1/ your intentions and 2/ the length of time during the tax year you have been in Australia.

Your situation is a bit different to majority of people that come on a WHV in that he will not be returning home and is making Australia his permanent resident. If he was returning home he would be a non-resident for tax purposes but because he is not he will be a resident for tax purposes and be taxed at the same rate as normal Australians. Therefore, it does not matter in regards to visas etc.


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