Were you on a 417 or 462 working holiday visa at any time from 1 January 2017 to 30 June 2017?
No |
Go to item Income tests 2017. |
Yes |
Read on. |
Answering this question
Different tax rates apply to the income you earned:
- up to 31 December 2016
- from 1 January 2017.
We refer to the income you earned or derived from 1 January 2017 to 30 June 2017 while you were on a 417 or 462 working holiday visa (less deductions relating to earning that income) as your working holiday maker net income.
The first $37,000 of your working holiday maker net income is taxed at 15%. All other income is taxed according to your residency status.
Working out your working holiday maker net income
- Add up your working holiday maker income, that is salary and wages, that:
- you showed at Income item 1 Salary or wages on your tax return, and
- you earned at any time from 1 January to 30 June 2017, while you were on a 417 or 462 visa.
In most cases, payment summaries from your employer show the payment type H to indicate that you earned working holiday maker income.
If your payment summary does not show the payment type H but you earned the income at any time from 1 January 2017 to 30 June 2017, while you were on a 417 or 462 visa, then include that income in this step.
You must also show the payment type H against the corresponding income at Income item 1 Salary or Wages.
- Add up your working holiday maker income, other than salary and wages, that:
- you showed on your tax return, and
- you derived at any time from 1 January to 30 June 2017, while you were on a 417 or 462 visa.
- Add these two totals to get your gross working holiday maker income.
- Subtract any deductions at D1 to D10 that relate to earning your working holiday maker income. The result is your working holiday maker net income.
If this amount is less than zero, your working holiday maker net income is $0.
Do not include any income you earned or derived between 1 July and 31 December 2016, nor any deductions incurred during this period.
The example below explains how to complete A4 Working holiday maker net income.
Example
Kiara is on a working holiday in Australia, on a 417 visa. Kiara works in a hotel between August and November 2016 and earns $15,000. Her deductions relating to this income are $300.
Between March and June 2017 Kiara works on a number of farms in NSW and earns a total of $10,000. Her deductions relating to this income are $200.
When Kiara completes A4 Working holiday maker net income, she only needs to consider her income and deductions from the period 1 January 2017 to 30 June 2017. This means that Kiara’s working holiday net income is $9,800 ($10,000 income from the farms less $200 deductions relating to that income).
Kiara writes $9,800 at A4 Working holiday maker net income.
End of exampleCompleting your tax return
Write at D your working holiday maker net income.
Where to go next
- Go to Income tests 2017
- Return to main menu Individual tax return instructions 2017
- Go back to question A3 Government super contributions 2017