Things you need to know
Working holiday makers and visa class changes
If you are a resident not from a non-discrimination article (NDA) country for income tax purposes and remained in Australia on a subclass 408 visa (Pandemic event)External Link as a result of your 417 or 462 visa expiring, your tax treatment will be changed from resident to working holiday maker (WHM). Complete this question as though you remained on a 417 or 462 working holiday visa.
Were you on a 417 or 462 working holiday visa at any time during 2022–23?
No |
Go to item Income tests 2023. |
Yes |
Read on. |
What you need to answer this question
Your working holiday maker net income is the income you earned while you were on a 417 or 462 working holiday visa, less deductions relating to earning that income.
WHM income does not include any employment termination remainder. This amount is taxed according to your residency status.
Working out your WHM net income
- Add up your WHM income, that is salary and wages, that
- you showed at question 1 on your tax return, and
- you earned 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 working holiday maker income.
If your income statement or payment summary does not show the payment type H but you earned 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 question 1.
- Add up your WHM income, other than salary and wages, that
- you showed in your tax return, and
- you earned during 2022–23 while you were on a 417 and 462 visa.
- Add together the totals from step 1 and step 2 to get your gross WHM income.
- Subtract any deductions at question D1 to D10 that relate to earning your WHM income. The result is your WHM net income.
If this amount is less than zero, your WHM net income is $0.
The example below explains how to:
- work out your WHM net income
- complete this question.
Example: WHM net income and completing your tax return
Kiara, a citizen of Canada, is on a working holiday in Australia, on a 417 visa.
Between September 2022 and June 2023 Kiara worked on a number of farms in NSW and earned a total of $47,000. Her deductions relating to this income are $800.
Kiara will show $46,200 at question A4 – label D ($47,000 income from the farms less $800 deductions relating to earning that income).
Kiara will write Canada at question A4 – label E.
Kiara also includes her deductions in the deductions section of the tax return.
End of exampleCompleting your tax return
To complete this question, follow the steps below.
Step 1
Write at label D your WHM net income.
Step 2
Write at label E your home country. Your home country is where you are from. This will be the country you:
- are a citizen of, or
- have a permanent right to reside.
Where to go next
- Go to Income tests 2023.
- Return to main menu Individual tax return instructions 2023.
- Go back to question A3 Government super contributions 2023.