Income Tax Rates Amendment (Working Holiday Maker Reform) Act (No. 2) 2016 (92 of 2016)

Schedule 1   Amendments

Part 1   Amendments

Income Tax Rates Act 1986

2   After section 3

Insert:

3A Working holiday makers and working holiday taxable income

(1) An individual is a working holiday maker at a particular time if the individual holds at that time:

(a) a Subclass 417 (Working Holiday) visa; or

(b) a Subclass 462 (Work and Holiday) visa; or

(c) a bridging visa permitting the individual to work in Australia if:

(i) the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa of a kind described in paragraph (a) or (b); and

(ii) the Minister administering that Act is still to make a decision in relation to the application; and

(iii) the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b).

(2) An individual's working holiday taxable income for a year of income is the individual's assessable income for the year of income derived:

(a) from sources in Australia; and

(b) while the individual is a working holiday maker;

less so much of any amount the individual can deduct for the year of income as relates to that assessable income.

(3) However, the individual's working holiday taxable income does not include any superannuation remainder, or employment termination remainder, of the individual's taxable income for the year of income.