When Salary or wage amount is presented with working holiday visa then A4 WHM Net income must also be presented. Calculation of tax on taxable income depends on this.


Switch-on "Adjustments" icon via 4 little square

Holiday makers net income must be also written in A4 field on adjustments step.

Click the form that you've created.

Go to "Adjustments" Tab

On Salary or wages worksheet user must select True for Working holiday makers question.

Note that any of the following fields must be filled if there is an amount in A4 Working holiday maker net income.

  • A salary or wage associated with working holiday maker income;
  • Share of net income from trusts less capital gains, foreign income and franked distributions;
  • Net non-Primary Production income/loss;
  • Net small business income.


How Tax Estimate is calculated for part-year resident Working Holiday Maker?

If the resident taxpayer is a working holiday maker at any time during the year of income:


(a) Count the taxpayer’s working holiday taxable income for the year of income as the first parts (starting from $0) of the taxpayer’s ordinary taxable income for the purposes of the table in clause 1; Income Tax Rates Amendment (Working Holiday Maker Reform) Act 2016, Clause 4.


A working holiday maker earned $20,000 in July and August 2019. In September 2019 she became a resident. Then she earned $70,000 in the rest of the financial year. 


The tax payable calculated as below:

 

Taxable IncomeTax RateTaxComment
$1- $20, 00015%$3,000ato.gov.au - Working holiday makers
$20.001 - $37,00019%$3,23019% applied since the first part of the income exceed the tax free threshold $18200
$37,001 - $90,00032.50%$17,225Marginal rate
Total Tax Payable
$23,455

Note: If the you find LodgeiT calculation is different, after about two weeks ATO will send the Notice of assessment with correct calculation which will also be visible in LodgeiT.