457 VISA tax return Tips: 05-Aug-2016
The tax time is upon us, and one of tax return categories we specialise in are 457 VISA tax returns. There are various facets of a 457 VISA tax return and if you are aware of all the aspects of such a tax return, a proper return can be lodged and the right refund will be received. This will avoid ATO audits and reviews.
457 VISA Tax Return
If you are working in Australia on a skilled or sponsorship visa (457 Visa) it is compulsory that you file an annual income tax return and to report your worldwide income. We understand that having worked in another country and recognising how the tax system works in Australia may be confusing and hence below are some tax tips that you should keep in mind when you are lodging your tax return.
Residency status for tax purpose
If you are working under a 457 Visa, your tax residency is the most important factor to be considered. There are special rules that apply to 457 VISA holders and since we do many 457 VISA tax returns each year, we can definitely assist you with the preparation and lodgement of such kind of a tax return. For an individual who is an Australian resident for tax purposes, your first $18,200 is tax free and the normal tax thresholds will apply accordingly to your income. If you have been in Australia for less than the whole financial year then part year thresholds will apply and you will not qualify for the full $18,200 tax free threshold. For example, if a taxpayer had arrived in Australia on the 1st of Jan 2016, the tax free threshold will decrease to $15,382.
Medicare Levy Exemption for 457 Visa tax returns.
If you are on a 457 Visa, depending on which country you are from and whether there is a Reciprocal Health Care Agreement with Australia, you may be eligible to apply for a Medicare Levy exemption.
In order to apply for an exemption you will be required to get a certificate from the Medicare Levy Exemption Certification Unit showing you are not entitled to Australian Medicare benefits. After looking over your visa and passport details, if you are eligible for Medicare Levy exemption, then you will also be eligible for Medicare Levy Surcharge exemption which can be up to 2.5% of your taxable income.
We understand that there are many facets of a 457 VISA tax return within the Australian taxation system that can be complicated to understand. We at A One Accountants will make sure to maximise your refund amount by going through all the eligible deductions that you may be able to claim for given your occupation.
As you may be aware there are a range of deductions that you could be eligible to claim and we would provide checklists and ask relevant questions to understand your personal circumstances so that you end up getting what you deserve.