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What You Need To Know About Tax When Working In Australia

The Working Holiday Marker of Australia has help a lot of travelers to work while traveling in the country. Your temporary Working Holiday visa will allow you to work in this nation and explore its beauty for up to one year (fifty two weeks). Once you receive your visa and before you start looking for employment, you will have to apply online for your Tax File Number (TFN) through the website of the Australian Taxation Office (ATO).

You can also call up at 13 28 61 within working hours from Monday to Friday to get your TFN. If you don’t have a TFN, you must obtain one and hand it over to your employee within twenty eight days of joining for work.

Tax Refund

Many backpackers are under the impression that they will be automatically refunded every dollar they paid as tax once they leave the nation. This is absolutely incorrect as non-resident Australians do not enjoy any tax-free threshold (unlike Australian residents who enjoy a current threshold of $6000). Temporary workers also do not enjoy any other tax concessions that are enjoyed by resident Australians.

So every dollar that you earn during your working holiday is taxable. The rate of deduction also starts at a steep 29% for the initial $414 and rises steadily in direct proportion to your earnings. So at the end of your working holiday tenure, all you will be eligible to get back is a tiny pro-rata amount that is incorporated into each of your tax deductions in case you do not work for all the fifty two weeks of the year.

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