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How Work and Holiday Makers become Tax Residents in Australia

How Work and Holiday Makers become Tax Residents in Australia

  • Tax Rates, Taxes, Work and holiday
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Did you know some Work and Holiday visa holders pay less tax than others?

Here, we’ll help you discover if you qualify for this special condition.

Read this guide to see if you can pay less tax on a Work and Holiday visa. This benefit applies to citizens of countries under the Non-Discrimination Article (NDA).

Do I belong to a country with an NDA?

Holders of a Work and Holiday visa (WHM) can be taxed under the same conditions as an Australian resident if they meet these two requirements:

1. Be a citizen of a country that has a Non-Discrimination Article (NDA) with Australia.
2. Be considered an Australian resident for tax purposes.

This regulation stems from a key court decision on November 3, 2021, which established that certain WHMs, under specific circumstances, can be taxed as Australian residents.

Which countries are included in the NDA?

If you are a citizen of one of the following countries and meet the tax residency requirements, you could benefit from this regulation:
– Chile
– Finland
– Germany
– Israel
– Japan
– Norway
– Turkey
– United Kingdom

Differences with others WHMs

Your tax situation will depend on several factors:
1. WHMs from a country not included in the NDA
If your country is not on the list, you will be taxed under the standard conditions for a Work and Holiday Maker. Click here to learn about the applicable tax rates based on your income.
2. WHMs from an NDA country and Australian Tax Residents
If you meet the requirements, you could be taxed as an Australian resident, which generally means paying less tax.  
Additionally, you might be eligible for tax benefits like the Low Income Earner Tax Offset. 

If you want to learn more about how to pay your taxes, please visit our articles for residents and Work and Holiday visa holders.

For any questions, don’t hesitate to contact us.



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