Are you planning to apply for a working holiday visa to Australia? Before you get caught up in all the excitement of working and traveling in Oz, you should learn the basics about taxes and tax refund. Similar in the UK, foreigners who work in Australia will pay taxes on their earnings, which they can claim back at the end of the tax year or when they return home. An average refund could amount to AUD$ 2,600. This is a lot of money to just leave behind. As a working holiday maker, you would have to contribute to a Superannuation Fund or a pension fund whilst working in Australia, especially if you earn more than AUD$450 per month. If you maximize the two years allowed for a holder of Australian working holiday visa, your contributions would quickly add up. This is why you should claim back your contributions when you leave Australia.
- You can start processing your tax refund while you are still in the country. You will need to provide personal details, your passport number, Australian tax file number, superannuation fund name and account number, and home postal address.
- You need to complete an online application form at DASP online application. This would usually take approximately 30 minutes to complete and involves confirmation of your identity and eligibility. Whatever personal details you provide will be passed on to the Australian Department of Immigration and Citizenship, so that your eligibility for a departing Australia superannuation payment and/or payment of unclaimed superannuation money will be established. If you are eligible, you can complete your application. Otherwise, you will know that you can’t claim your contributions back for some reason or another.
- If you are eligible, the system will then search the records in the Australian Taxation Office to identify where your superannuation fund is held. If found, the system will then create an application for each fund or payment claim. You will then be prompted to provide additional information.
- You will receive your rebate once your visa expires or you have returned home. Payment will come in the form of a cheque mailed out to you. Expect a deduction of 35% for withholding tax.
Before you leave the UK, you might want to claim a tax refund as well. The payment you receive might be enough to cover your travel expenses or even your stay in Australia. If you have worked during the tax year before your departure, you are definitely entitled to a tax back.
How Much You Will Receive?
Well this all will depend on how much you have earned within the Australian tax year, between 1 July to 30 June of each year. You can use our tax refund calculator to get an estimate. But, generally, if you have earned below the tax free allowance, you can get a refund on all the income tax that you have paid. This could mean a lot of money that you can use for your trip Down Under. Even if you earn more than the tax free allowance, you can still claim a refund. You can claim your tax back after you have finished working or before you leave the UK. It is important that you get a P45 form from your employer, so you can process your tax refund. Since it would take a few weeks for your refund to be paid out, it is vital that you give enough time allowance between processing your UK tax rebate and your departure for Australia. To discuss this further, our tax agents are only a phone call away!