Were you on a 417 or 462 working holiday visa at any time during 2020–21?
No |
Go to item Income tests 2021. |
Yes |
Read on. |
Answering this question
Your working holiday maker net income is the income you earned or derived while you were on a 417 or 462 working holiday visa, less deductions relating to earning that income.
Working holiday maker income does not include any employment termination remainder. This amount is taxed according to your residency status.
The first $45,000 of your working holiday maker net income is taxed at 15%. All other income is taxed according to your residency status.
Working out your working holiday maker net income
- Add up your working holiday maker income, that is salary and wages, that
- you showed at item 1 on your tax return, and
- you earned or derived while you were on a 417 or 462 visa.
In most cases, income statements and payment summaries from your employer show the payment type H to indicate that you earned or derived working holiday maker income.
If your income statement or payment summary does not show the payment type H but you earned or derived the income while you were on a 417 or 462 visa, then include that income in this step. You must also show the payment type H against this income at item 1.
- Add up your working holiday maker income, other than salary and wages, that
- you showed on your tax return, and
- you earned or derived while you were on a 417 and 462 visa.
- Add together the totals from step 1 and step 2 to get your gross working holiday maker income.
- Subtract any deductions at D1 to D10 that relate to earning your working holiday maker income. The result is your working holiday maker net income.
If this amount is less than zero, your working holiday maker net income is $0.
The example below explains how to:
- work out your working holiday maker net income
- complete this item.
Example
Kiara is on a working holiday in Australia, on a 417 visa.
Between September 2020 and June 2021 Kiara worked on a number of farms in NSW and earned a total of $30,000. Her deductions relating to this income are $800.
Kiara will show $29,200 at D item A4 ($30,000 income from the farms less $800 deductions relating to earning that income).
Kiara also includes her deductions in the deductions section of the tax return.
End of exampleCompleting your tax return
Write at D your working holiday maker net income.
Where to go next
- Go to Income tests 2021.
- Return to main menu Individual tax return instructions 2021.
- Go back to question A3 Government super contributions 2021.