3 must know tips to get ready for your backpacker tax return 30th JUNE 2015!
3 need to know tips every working holiday maker should be aware of when claiming backpacker tax back this end of tax year 30th June 2015.
TIP 1) GET YOUR PAYG SUMMARY READY
You can really speed up your backpacker tax refund by obtaining your end of year payment (PAYG) summary and then lodging with this document.
This will show for the entire tax year all the income and tax you have paid, across all employers you have worked for. It is more efficient than obtaining a final payslip from each employer you have worked for during the year as it is a single document (if you have had more than one employer, and go the pay slip route, you would have to locate multiple documents).
The PAYG summary should be given to you by your employer in the first week of July 2015. Speak to your employer now to ensure that they are ready to give you this piece of documentation.
TIP 2) GET ACROSS YOUR EXPENSE DEDUCTIONS
Know what you’re entitled to and get the receipts ready.
Where you have had to incur a work related expense out of your own pocket, you may well be entitled to claim this as a tax deduction.
TIP 3) KNOW YOUR RESIDENCY STATUS
The rules are actually very simple – the main consideration being whether or not you have lived and worked in Australia for 183 days or longer. Technically speaking, a backpacker would also need to be living in the same place (or have the intention of doing so) in Australia for 183 days or longer.
As a resident, a backpacker can claim the tax free threshold of $18,200. If the residency status is not attained, then the tax free threshold will not be applied.
- Stay is greater than 183 days in Australia (and living in the same place for 183 days or having the intention to do so at lodgement) : Australian Resident – qualifies for first $18,200 of earnings tax free
- Stay is less than 183 days in Australia : Non – Australian Resident – taxed at 32.5% from first dollar earned – does not qualify for the tax-free threshold of $18,200
Please note that if at the time you lodge this year you have not been in Australia for a period of 183 days or longer, you can still qualify as a resident if the intention is that you will remain for 183 days or longer and within the same place.