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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1051440250634

Date of advice: 15 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 period:

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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