Tax return - General Questions
For Working Holiday Visa Holders
How much tax will I get back?
How long will it take to get my tax back?
– 2 weeks for end of year assessments (after 30 June)
– 4 weeks for early end of year assessments (before 30 June)
This can change at anytime if ATO asks additional questions or does an audit. We are unable to control this.
What happens if I don't do an accurate tax return?
The ATO also states that if you don’t pay the right amount of tax, you’ll owe them even more money.
It is up to the ATO to decide how to penalise people who lie on their tax returns.
Also note, if you’re suspected of engaging in fraud or other criminal activity, then the department can consider whether there are grounds to refuse a future visa application. So, it’s always advisable to be upfront when lodging your tax return.
When can I claim my Australian tax return?
Can I get my tax return if I've left Australia?
Is your employer backpacker friendly?
If your employer isn’t registered with the (ATO) as an “employer of working holidaymakers”, then 32.5% tax will be withheld from your pay instead of 15%.
Employers with offices in different regions may now retain a backpacker for a year, so long as the second six months is worked in a different place (previously, a backpacker can only stay six months with the same employer).
What are the tax changes for backpackers since 1st Jan 2017?
- – Income will be taxed at 15%, down from 32.5%
- – Superannuation refunds taxed at 65%, up from 38%
- – No changes to all other visa holders.
What do the new changes mean?
- – The good news is that the non-resident tax rate is now reduced to 15% and applies to visa subclass holders 417 and 462.
- – The changes to income tax rates will not be backdated and only impact tax returns for the tax year 1st July 2016 – 30th June 2017.
- – All tax year returns prior to 1st July 2016 – 30th June 2017 will be processed under the old assessment rules.
- – When you go to Australia on a working holiday visa, you’ll be taxed as a non-resident from the day you arrive and this is now unlikely to change while you are on a working holiday visa.
This means that as a working holidaymaker, you’ll pay the non-resident rate of income tax and stay on this rate while you remain in Australia on this visa.
Backpackers will no longer be eligible to be classed as “residents” for tax purposes, no matter how long you stay in any one location.
How much does it cost to do an Australian tax return with BuddyHQ?
Tax Return fee
Amended Tax Returns
If you lodge your tax return (by yourself or with an accountant) and feel the outcome is not correct and you end up with a tax debt to the ATO, it is possible to amend your tax return.
Many people apply for their tax return and do not include all necessary information and work related deductions, this situation may lead to a tax payable with the Australian Taxation Office or a lower refund.
The good news is that we can amend your tax return and our Chartered Tx Adviser can help you to amend your tax return and possibly get a better result.
Possible tax payer scenario:
I worked the same hours and same job as my friend but I got a tax payable and my friend got a tax refund of X amount.
Solution: Contact us and we will review your tax return, it is possible that you may not have ticked the correct boxes in your tax return application and/or you may not have included your work related expenses.
BuddyHQ service for amendment of tax return is a flat fee of $250.
Contact us today and get your amended tax return sorted.
02 809 108 71
$55 for international bank transfers.
FREE transfers to Australian bank account!
BuddyHQ Management of trust account fees:
BuddyHQ manages the Commonwealth Bank trust account in accordance with Accountants Professional Ethical Standard and Chartered Accountants ANZ (APES 310)
BuddyHQ pays the tax refund monies to all clients within 5 working days from receiving the funds from the Australian Taxation Office (ATO).
In cases where the tax refund cannot be paid to our client we charge and administration fee of $30 plus GST. For example, if the bank details provided are not correct and our client does not provide new correct bank details for payment, we are required to administer the account in accordance with APES 310. This fee BuddyHQ will cover our costs of administration of the trust account. Where applicable the $30 fee plus GST will be charged per month and we will deduct this monthly from the balance held in trust.
If you believe you have an unpaid tax refund please contact us at firstname.lastname@example.org
What if I do not lodge my tax return.
What happens if you do not lodge your tax return?
The ATO will impose a Failure to Lodge penalty on you where your tax return is not lodged by the due date.
If the ATO chooses to apply a penalty they will also send a penalty notice stating the amount and due date of the penalty.
What is the cost of the penalty for failing to lodge a tax return?
- – If you have a late tax return, lodge it as soon as possible to avoid interest and penalties accumulating;
- – If your tax return is late, email us to see if you are eligible to get a remission of the interest and penalties that the ATO charge you with;
- – Keep on top of any correspondence from the ATO. Warning letters, such as default assessment warning letters, are sent to prevent serious action being taken against you; and
- – If you’re unsure on whether you have any unlodged tax returns, contact us at Info@buddyhq.com.au.
Tax (GST) Back for Travellers – Tourist Refund Scheme
The Tourist Refund Scheme allows Australia and overseas passengers to claim back the Goods and Services Tax (GST) and Wine Equalisation Tax (WET) on goods purchased in Australia and taken with them as accompanied baggage overseas (on the same plane as you aret ravelling on).
BuddyHQ is not involved in this scheme, and it is not related to tax return services (income tax). This link is provided for information only.