# Resident for tax purposes



## Obiwanquinnobi (Jul 29, 2017)

After some research and using the ATOs tool, I'm rarely certain I qualify as a resident for tax purposes. My question is, at the time that I filled out forms for the ATO, I think when I started my job, I didn't realise what that meant so I think I checked off the box that said I was not a resident for tax purposes. Is that problematic? Does that even matter?


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## JandE (Jul 17, 2015)

Obiwanquinnobi said:


> After some research and using the ATOs tool, I'm rarely certain I qualify as a resident for tax purposes. My question is, at the time that I filled out forms for the ATO, I think when I started my job, I didn't realise what that meant so I think I checked off the box that said I was not a resident for tax purposes. Is that problematic? Does that even matter?


As long as you do the end of year tax return correctly, everything will work out OK.
Many new arrivals would not be tax resident at first, although may say tax resident as an intention.


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## Obiwanquinnobi (Jul 29, 2017)

JandE said:


> As long as you do the end of year tax return correctly, everything will work out OK.
> Many new arrivals would not be tax resident at first, although may say tax resident as an intention.


So I just got off the phone with the ATO, the genteman I spoke to was a little cagey about whether or not I qualify as a resident for tax purposes, he essentially said he can't decide that for me that it's up to me to determine.. My question is what if I decide that I am a resident for tax purposes and they decide I'm not. Would my refund application just get kicked back or could it get through and then they would later rule that I'm not? Would that result in any penalty on my part? My hesitation is that if I get a refund, then they decide I don't qualify, would I just have to file again and make up the difference in refund or could I be slapped with a fine? I explained my whole situation and was pretty annoyed that he even comment on whether or not I qualified.


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## Mish (Jan 13, 2013)

Why you don't you tell us more about your circumstances ie. visa, intention etc.

My husband who came on a PMV has always been a resident for tax purposes as it was his purpose to reside in Australia permanently. Just remember that resident for tax purposes and resident for immigration purposes are different.


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## Obiwanquinnobi (Jul 29, 2017)

Well, my girlfriend and I moved to Australia together on Working Holiday Visas. I am from Canada and she's from Japan. It was our intention to gain sponsorship and move there permanently which we were both working towards. I sold all my belongings, closed my bank accounts, cancelled my health insurance before I left. I had a verbal agreement with the owner of the restaurant I worked for but nothing ever got started. Midwau through the year My girlfriend's Grandfather's health took a turn for the worse so we decided to change plans. I'm now back in Canada temporarily and will go to join her in Japan soon because it looks like it's quite serious. We lived in two different apartments one for 2 months and the other for 10. Where it gets complicated is that that intention can be hard to prove. We also, when 92faced with the prospect of leaving our intended home decided that we wanted to see as much of the country as we could because it's unlikely we will ever go back. At the end of our year we went to NZ for a short trip and then got tourist visas to re enter Australia and did a 7 week roadtrip around the country.


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## Irish.fnq (Apr 27, 2017)

Obiwanquinnobi said:


> So I just got off the phone with the ATO, the genteman I spoke to was a little cagey about whether or not I qualify as a resident for tax purposes, he essentially said he can't decide that for me that it's up to me to determine.. My question is what if I decide that I am a resident for tax purposes and they decide I'm not. Would my refund application just get kicked back or could it get through and then they would later rule that I'm not? Would that result in any penalty on my part? My hesitation is that if I get a refund, then they decide I don't qualify, would I just have to file again and make up the difference in refund or could I be slapped with a fine? I explained my whole situation and was pretty annoyed that he even comment on whether or not I qualified.


When did you come to AUS? I just got slapped with a massive tax bill. If you arrived 6 months prior to Dec 2016 and were in the same place/employment, treated Aus like your home (sounds like you did) then you qualify. BUT ONLY UNTIL DEC 2016. From the 1st Jan 2017, the rules regarding tax rates for 'backpackers' changed. ( this caught me out as although i have a 417 'backpacker' visa, I've applied for residency, bridging visa doesnt kick in until 2018 though) if your employer registered to hire 'backpackers' the rate of tax is 15%. If not, you should have been paying a non-resident rate of 32.5%. The rule of 'resident for tax' doesnt apply to 417 visa holders from 1st Jan 2017.

Its all very confusing. I paid a tax agent to do my return and they didn't even know about the change of rules.


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## GetTaxSolutions (Sep 26, 2017)

*WHV Taxation for 2017*

Hi All,

I see that the recent changes in the taxation of the WHV holders is causing a lot of trouble to everyone. Basically this is only for 2017 tax year because the change started from 1 January 2017 which is just in the middle of the tax year. The question has two aspects to review:

1. the tax residency status that you all mention above. In general for 2017 tax year you can be considered as a resident for tax purposes only if you had 183 days in the period 1 July 2016 - 31 Dec 2016 which practically is the whole period. And this is just a basic to base your evaluation for this. If you are to follow the full scope of tax residency tests you have to include many more factors like staying in one area during this period, working for 1 to 2 employers, etc. And in the end even if you meet all this you might end being classified as a non resident for tax purposes and this ATO decision has to be Objected if you can prove it.

2. The way you are taxed is also based on some hybrid system if you are to be considered as a resident for tax purposes. The standard tax tables are not valid in the situation when you have income both before and 1 January 2017.

The important thing is that if you receive a letter from ATO asking for information be very careful and fill the details and pass the letter back in time. They will base their decision on these details.

Hope this helped those who still did not lodge their tax returns.


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