| Disclaimer This edited version has been archived due to the length of time since original publication.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: 1051501072132
Date of advice: 01 April 2019
Ruling
Subject: Residency for taxation purposes – tax rates - bridging visa A after working holiday maker
Question 1
Are you a resident of Australia for income tax purposes?
Answer
Yes. Having considered your circumstances as a whole and the relevant residency tests, you are a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au
Question 2
Are you subject to the Working Holiday Maker tax rates for the period you work under a Bridging Visa A, before the commencement of a Partner 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.
The following is the definition of a working holiday maker:
An individual is a working holiday maker at a particular time if the individual holds at that time:
a) Subclass 417 (Working Holiday) visa; or
b) a Subclass 462 (Work and Holiday) visa; or
c) a 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) (subsection 3A(1) of the Income Tax Rates Act 1986).
This ruling applies for the following period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You entered Australia on a Working Holiday Maker (WHM) Visa (417) late 20XX.
You did not travel around but took up residence with your partner and sought permanent employment.
You started working for an employer early 20XX and were subject to WHM taxation rates.
You applied for a Partner Visa 820 mid 20XX.
A Bridging Visa A was granted mid 20XX.
The WHM Visa ended late 20XX at which point the Bridging Visa came into effect.
The employer withheld at the WHM tax rates from the beginning of your employment until late 20XX after which you were taxed at normal resident tax rates.
The Bridging Visa ended after the decision was made on the Partner Visa application.
The Partner Visa was granted late 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1936 subsection 6(1)
Income Tax Assessment Act 1997 subsection 995-1(1)