The Backpacker Tax Rate
On 1st January 2017, the Australian Government rolled-out a new backpacker tax rate which saw the introduction of a 15% tax rate needing to be paid from the first dollar earnt. Previously, backpackers on working holiday and work and holiday visas were able to take advantage of a tax free threshold, which meant they were often able to receive 100% tax back for all taxable income earnt up to $18,200. The current thresholds for backpackers on 417 and 462 visas are as follows:
|Taxable Income||Tax on this Income|
|0 – $37,000||15c for each $1 earnt|
|$37,001 - $87,000||$5,550 plus 32.5c for each $1 over $37,000|
|$87,001 - $180,000||$21,847 plus 37c for each $1 over $87,000|
|$180,001 and over||$56,210 plus 45c for each $1 over $180,000|
Visa-holders that stay in Australia for less than 6 months, and are not deemed ‘residents for tax purposes’ may be subject to the following higher foreign residency tax rates:
|Taxable Income||Tax on this Income|
|$0 – $87,000||32.5c for each $1|
|$87,001 - $180,000||$28,275 plus 37c for each $1 over $87,000|
Can Backpackers still receive a Tax Return?
Even with the increased backpacker tax rates in place, the amount of tax deduced will vary and is often set by your employer. Whilst the official tax rate for working holiday makers is 15% tax from the first dollar earnt, there are several factors that may result in you paying a higher percentage of tax even if you earn less than $37,000. Pro Tax can help you get this excess tax back.
If you earn more than $37,001, you also may be entitled to some tax back. CONTACT US for more information, or for a quote, apply below:
Submitting your tax return is quick and easy and only takes 10 minutes. Fill out our easy online application form and we will assess your application and get in touch with a quote. We’ll let you know if you’re due a refund and if you are, we offer a handy no upfront fee service: You pay nothing upfront so you’re never out-of-pocket. We take our one low flat fee from your refund when it’s complete, and pop the rest of your refund into any bank account of your choosing – We transfer to Australian accounts and all bank accounts world-wide.
If you are not entitled to a refund, we can assist you in meeting your mandatory, legal obligations to lodge a tax return to ensure all your affairs are in order. We offer a drastically reduced fee to assist you with this, which you can pay up-front in advance in a number of ways most convenient for you. Apply here and we will be in touch to discuss your application with you after we assess your form.
Leaving Aus? Don’t Forget Your Super!
If you are not eligible for a tax refund you don’t need to go home empty-handed: It’s highly probable that can still receive a superannuation refund. As superannuation is 9.5% of your wages, it can grow to a significant amount during your time in Australia. For example, if you earn $20,000 from working, this means you will have $1,900 in gross super savings! Whilst the Australian Government introduced larger super withdraw taxes for backpackers in line with the backpacker tax changes, most people are still entitled to a refund so it’s definitely worth applying.
When to Apply for Your Super Refund?
You should apply for your super refund as soon as you finish working and are getting ready to leave Australia. We will prepare your application, liaise with your employers to ensure that all your super money is paid and up to date, help you cancel your visa if needed, and lodge your application, conveniently depositing it into your international bank account when it’s complete. Our low, flat fee is deducted prior to the transfer so you so there’s no need to pay up-front.