How Tax Estimate is calculated for part-year resident Working Holiday Maker?
Lodgeit’s calculation also counts tax for Working Holiday Maker (WHM).
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 Income||Tax Rate||Tax||Comment|
|$1- $20, 000||15%||$3,000|
|$20.001 - $37,000||19%||$3,230||19% applied since the first part of the income exceed the tax free threshold $18200|
|$37,001 - $90,000||32.50%||$17,225||Marginal 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.