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Edited version of your written advice
Authorisation Number: 1051443292078
Date of advice: 19 October 2018
Ruling
Subject: Tax rates for Bridging Visa A which connects Working Holiday Maker Visa to Employer Sponsored Visa
Question
Are you subject to the Working Holiday Maker tax rates for the period you work under a Bridging Visa A, before the commencement of an Employer Sponsored Visa in Australia?
Answer
No, the Working Holiday Maker (WHM) tax rates take effect during the period you are considered to be a WHM. The end of the WHM Visa marks the date new tax rates are to be applied. In this case, you are not subject to the WHM tax rate from the cessation of your WHM Visa.
You are a working holiday maker (WHM) if at the time you hold a:
a) Working holiday makers visa (subclass 417), or
b) Work and holiday makers visa (subclass 462), or
c) Bridging visa permitting the individual to work in Australia if
i. the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and
ii. the Minister administering that Act is still to make a decision in relation to the application; and
iii. the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).
The Bridging Visa A which connects the WHM Visa to the Employer Sponsored Visa takes into consideration residency status to determine correct taxation rates to be applied.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You entered Australia on a Working Holiday Visa.
You were employed by Company X and were subject to Working Holiday Maker taxation rates.
Your employer submitted an Employer Sponsored Visa application to the Department of Home Affairs in order to engage you on a long term basis.
You were granted a Bridging Visa A while your Employer Nomination (subclass 186) application was being processed.
Your Working Holiday Maker Visa ended the same day the Bridging Visa A came into effect.
The end date placed on the Bridging Visa A was 35 days after a decision was made on the Employer Nomination (subclass 186) Visa application.
Your Employer Nomination (subclass 186) Visa was granted.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 995-1(1)
Income Tax Assessment Act 1936 subsection 6(1)
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