How to get Australian backpacker and working holiday tax refunds
How to claim your Australian backpacker tax refund – your questions answered.
Sweet news for backpackers and travellers on a working holiday visa in Australia – it’s possible to get a working holiday tax refund. And sweeter still, the average Australian tax refund is AU$2,600.
Now is the time to get your tax ducks in a row! It’s quicker and easier than you think as NexVentur has partnered with Taxback.com to help you claim your maximum legal Australian tax refund.
Read on for tips on getting your tax back in Australia, plus learn about your residency status, claiming back work expenses and Superannuation refunds.
When are tax returns due for Australia?
The deadline to file your Australian tax return is 31 October.
Your tax return must relate to the previous tax year (1 July – 30 June).
How do I know what is my Australian tax residency?
A working holiday visa is classed as a temporary visa and for tax purposes you’d be a non-resident, at least for the first six months. Temporary visa holders are required to pay the non-resident rate of tax during their first six months in Australia. This is higher than the resident rate, however it’s important to comply with Australian tax obligations to ensure you’re not left with a tax liability when leaving the country.
How does Australian tax residency status affect my tax refund?
A number of factors determine if you’re an Australian resident for tax purposes. These include how long you’ve been in the country and your behaviour while in Australia. If you have lived in the same place and established ties in the local community then you would likely be considered an Australian resident for tax purposes. In this case you may be entitled to a refund of the tax you paid at the higher rate when you were a non-resident.
It’s a good idea to engage the services of our tax agent to help you:
- determine your tax residency status
- avoid tax liabilities
- maximise your Australian tax refund
You can also use a useful tax back calculator to find out if you are due a tax refund.
Remember, the average tax refund is AU$2600
Can I claim back work expenses on my Australian tax return?
Most expenses related to your work are tax deductible and they are a great way to minimize your tax liability or boost your tax refund in Australia. What can and can’t be claimed depends on your type of job and it must:
- have been paid for by yourself and you weren’t reimbursed
- relate to your job
- have a receipt of proof of the expense (with a few exceptions)
What type of work expenses can I claim back?
Again, this depends on your job, however common work expenses that can be claimed back in your tax return include equipment, tools and travel between work and home in some cases. White Cards, RSA and RCG are deductible and can have a big impact on your tax return. Chat to our tax experts for a more detailed list. You should retain all your receipts for work expenses as proof for the Australian Tax Office.
How do I get my Australian superannuation refund?
Superannuation (or ‘super’) is a retirement savings system. If you’re over 18 and earned more than $450 per month in Australia, your employer was obliged to pay 9.5% of the value of your ordinary time earnings into a super fund on your behalf.
If you don’t intend on retiring in Australia and leave the country, a ‘Departing Australia Superannuation Payment’ (or DASP) can be claimed, but only if your visa has expired and you’ve left Australia. DASP can be a nice amount – the average refund is AU$1,908. Even if you’re not eligible for an income tax refund, you should still be able to claim back superannuation.
You can apply for your DASP directly to the Australian Tax Office (ATO) or talk to our tax partners who can help with all the paperwork and ensure you get the maximum legal tax and superannuation refunds. They will also help you get your visa cancelled to speed up the process and chase up any lost superannuation documentation for you.
Apply for your superannuation refund here.
Will my Australian superannuation refund be taxed?
Yes. Working holidaymakers on 417 or 462 visas: If your Departing Australia Superannuation Payment (or DASP) is processed on or after 1 July 2017, your superannuation refund will be taxed at a rate of 65%.
Other visa holders: Your DASP will be taxed at 38%.
I left Australia years ago! Can I still claim my Australian superannuation refund?
Yes! As long as you have left Australia and your visa has expired, you can apply for your Superannuation refund. Apply for your superannuation refund here.
Can I return to Australia after I have applied for my superannuation refund?
Good news! You may return to Australia on another visa, even if you have claimed your superannuation refund.
Do I have to declare bank interest on my Australian tax return?
The Australian Tax Office has sight of taxpayers’ bank interest, so you need to disclose all interest earned to ensure your tax refund is processed smoothly.
Can I get a Medicare Levy Exemption Letter?
The Medicare levy is the universal health scheme which guarantees Australians and some other nationalities (Britons and Italians) access to healthcare at little or no cost. It’s partly funded by taxpayers who pay a levy of 2% of their taxable income. Some foreign citizens are exempt from paying the levy, yet it’s still deducted from their wages. These citizens should apply for an exemption letter which will boost their tax refund.
You must earn more than $20,542 in the financial year to be eligible for a Medicare levy exemption and submit a Medicare Entitlement Statement separately to your tax return application. It might take about 10-12 business days longer to get your refund but it will be worth it! Our tax partners can help you with all the ins and outs of this.
Seven reasons to use our tax back service:
1. The service is hassle-free. They do the paperwork. You get the refund!
2. We give you access to the experts to maximise your tax refund
3. Our expert partners will help you retrieve any missing info or documents
4. There’s a useful tax return calculator for Australia to find out if you are due a tax refund
5. You’ll get regular updates you so you can get on with life while your money is on it’s way back to you!
6. Free, no-obligation refund estimate before you begin the process
7. The average tax refund Down Under is AU$2600
Claim your tax refund here