457 VISA Tax Return Tips: 05-Aug-2016
Filing a tax return can be stressful. Filing one in a country where you’re not a permanent resident? That’s even harder.
If you’re a 457 Visa holder working in Australia, you have extra things to think about. Residency rules. Medicare levies. Worldwide income reporting. Get it wrong and the ATO might come knocking.
But don’t worry. We’ve got your back.
Below are the key tips you need to know before lodging your 457 Visa tax return. Read them, then give us a call if you want us to handle the whole thing for you.
457 VISA Tax Return
Tax time is here. We specialise in 457 Visa tax returns.
If you work in Australia on a skilled or sponsorship visa, you must lodge an annual tax return. You also need to report your worldwide income.
We know Australian taxes can feel confusing – especially if you have worked overseas. So keep these practical tips in mind.
Residency status for tax purpose
Your tax residency is the biggest factor for 457 Visa holders. We prepare many 457 returns each year, so we understand the special rules that apply to you.
If you are an Australian resident for tax purposes: The government taxes your first $18,200 at 0%. Normal thresholds apply after that.
But here’s a catch. If you haven’t spent the full financial year in Australia, part-year thresholds apply. You won’t receive the full $18,000 tax-free threshold.
Example: If you arrived on 1st January 2016, your tax-free threshold drops to $15,382.
Medicare Levy Exemption for 457 Visa tax returns.
Your country of origin determines whether you qualify for a Medicare Levy exemption. This applies if Australia has a Reciprocal Health Care Agreement with your country.
To claim this exemption:
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The Medicare Levy Exemption Certification Unit will issue you a certificate
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This certificate proves you are not entitled to Australian Medicare benefits
Once we review your visa and passport details, you may also qualify for the Medicare Levy Surcharge exemption. This can save you up to 2.5% of your taxable income.
We will help you maximise your refund
The Australian taxation system makes 457 Visa tax returns complicated. At A One Accountants, we review every eligible deduction for your occupation.
We will provide you with checklists. We will ask you the right questions about your situation. Our goal? We will make sure you receive every dollar you deserve.