482 VISA Tax Returns

To correctly prepare a 482 VISA Tax Return, you first need to determine tax residency. This is one of the most important concepts to understand. Tax residence is different from residency for immigration purposes. On a 482 Visa tax return, the tax residency status can be either resident or non-resident. So you may be an Australian resident for tax purposes even if you are not an Australian citizen or permanent resident for immigration purposes.

Generally, a 482 visa holder fits into one of two categories: Australian resident for tax purposes or temporary resident. There are four tests to determine whether someone is an Australian tax resident. They are shown below:

1. The resides test: if you reside in Australia according to the ordinary meaning of ‘reside’, that is ‘to dwell permanently or for considerable time, to have a settled or usual abode, and to live in a particular place’. Affecting factors include physical presence, intention and purpose, family and employment ties, maintenance and location of assets, social and living arrangements.
2. The domicile test: a place you consider to be your permanent home. This could be by origin (where you were born) or by choice.
3. The 183 day test: when over half of the year is spent in Australia.
4.  The commonwealth superannuation fund test.
5. Other tests to determine residency.

Satisfying any of the tests above automatically makes you an Australian tax resident. This means you must abide by Australian taxation law for all income you have earned—whether in Australia or overseas. Australian residents pay tax on their worldwide income. Therefore, on a 482 Visa tax return, if you earned any foreign income as a resident, you must declare that income and pay tax on it in Australia. However, any tax you paid overseas could offset your tax payable in Australia if a dual tax agreement exists between Australia and the country where you earned the income.

If none of the above applies, an individual can still be a temporary resident if:

1. You hold a temporary visa (482 in this case) granted under the Migration Act 1958.
2. You are not an Australian resident within the meaning of the Social Security Act 1991.
3. Your spouse (if applicable) is not a resident within the meaning of the Social Security Act 1991.
4. Other tests to determine your non-resident status.

In this case, you only need to declare income derived in Australia. You also need to declare any income earned from employment or services performed overseas while you are a temporary resident of Australia. You do not need to declare any other foreign income or capital gains. However, please note one important point. For a 482 Visa TR, you would then need to consider the tax rates as a non-resident.

We have prepared many resident and non-resident tax returns. Determining residency for a 482 VISA tax return is complex. That is why we strongly recommend seeking professional help to prepare these returns. Whatever your situation, we are here to assist you. We can help complete your tax return.