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Edited version of private advice
Authorisation Number: 1051732696295
Date of advice: 4 August 2020
Ruling
Subject: Working holiday maker tax rates
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
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
In 20xx, you entered Australia on a Working Holiday 417 Visa (WHM visa).
You were employed from month A 20xx and were subject to Working Holiday Maker taxation rates.
In month B 20yy, your employer submitted an Employer Sponsored Visa 457 application to the Department of Home Affairs in order to engage you on a long-term basis. This visa has yet to be granted.
In same month 20yy, you were granted a Bridging Visa A while your 457-visa application is being processed.
Your visa history is -
|
Date |
Type of Visa Issued |
Comment |
|
xxx |
Bridging Visa: Bridging A |
Not in effect because working holiday visa was in effect. |
|
xxx |
Bridging Visa: Bridging A |
Work limitation - holder must not be employed by 1 employer for more than 6 months. |
|
xxx |
Bridging Visa: Bridging A |
Work limitation as above. |
|
xxx |
Bridging Visa: Bridging A |
No work conditions + no travel |
|
xxx |
Bridging Visa: Bridging B |
Multiple entries + no conditions |
There is currently no end date placed on the Bridging Visa B. The Department of Home Affairs will determine this when the 457-visa application has been processed.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 995-1(1)
Income Tax Assessment Act 1936 subsection 6(1)
Reasons for decision
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 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 Bridging Visas A and B which connect the WHM Visa to the 457-visa takes into consideration residency status to determine correct taxation rates to be applied.
Further information
You will be subject to the relevant resident or non-resident tax rates from the date the Bridging Visa A was activated. The WHM tax rates are not to be applied to the period the Bridging Visa A or B is in effect.