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 | ato.gov.au - Working holiday makers |
| $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.