Backpacker Tax Back
Don't leave your Tax Refund in Australia!
You worked hard in Australia – picking fruit – waiting tables – building walls… Leaving your hard-earned Aussie Dollars on the table in Australia is about the last thing any self-respecting traveller should do.
Don’t let your tax refund go unclaimed!
If you are a backpacker from the UK, Germany, Finland, Chile, Japan, Norway, Israel or Turkey and you’ve worked in Australia with a 417 or 462 visa you could be eligible for a significant tax refund if you can prove your residency!
And if you’re from a different country – you might still get a decent refund.
What is the backpacker tax?
The term “backpacker tax” specifically refers to the tax rules that apply to individuals on working holiday visas (subclass 417 and subclass 462).
The tax rates for non-residents under the working holiday maker program are as follows:
- 15% on income up to $45,000
- Ordinary tax rates apply to income over $45,000
So how can you get a refund?
If you are from UK, Germany, Finland, Chile, Japan, Norway, Israel or Turkey and you can prove you were a resident (because Australia has reciprocal tax agreements with these countries) you are entitled to pay the same tax as an Australian.
Proving Residency: The Australian Tax Office (ATO) are quite strict when it comes to processing WHV applications as residents for tax purposes, so it is best to keep all sorts of documents showing your residential address.
The tenancy agreement and your paid rent receipts are the most important supportive documents regarding your residential stay in Australia however it is best to collect as much as possible documentation showing your residential address.
Every payslip, membership card or utility bill showing your address can make a huge difference in the ATO’s decision on whether they will deem you as a resident for tax purposes.
For example, Australian residents for tax purposes who earned less than AUD 18,200 AUD don’t pay any tax. So if you can prove residency and you are from one of the countries mentioned you will get a refund.
How to Get a Refund?
Here’s a step-by-step guide for British, Israeli, German, Finnish, Chilean, Japanese, Norwegian, and Turkish citizens.
- Keep proof you are a resident for tax purposes while being a working holiday visa (WHV) holder.
- Remain in the same address or area in Australia for 183 days or more during the tax year.
- Provide sufficient residential proof that confirms your stay in the same address or area for more than 183 days such as a rental contract, tenancy agreement, rental payment proof (invoices), payslips showing your address, paid utility bills showing your address, gym memberships, and bank statements.
Tip
Your paid rent receipts are the most important supportive documents regarding your residential stay in Australia but still it is best to collect as much as possible documentation showing your residential address.
How Much Can I Get for Tax Refund?
According to Taxback, in 2023, backpackers who used their service received an average income tax refund of approximately $2,500 AUD. This amount is way higher compared to the average of $50 AUD that backpackers typically receive when applying for refunds on their own. So, it’s definitely worth checking out what you might be due.
Residents for tax purposes can receive a full refund of their taxes if their income is AUD 18,200.00 and below.
For example: If you have paid AUD 3,000.00 in tax and you have earned less than AUD 18,200.00, your tax refund is going to be AUD 3,000.00.
What about Superannuation?
You might not have realized, but besides income tax, your employer has probably paid in some “Super,” so you could be in for an extra refund on top of your tax one.
The average super refund is around $2,000 AUD as per Taxback data collected in 2023. So, it can be worth checking and see how much you get for returns.
If you are a working holiday maker in Australia, you are entitled to a claim your Superannuation and your residency status won’t affect applying for your Superannuation return.
If your employer’s been pitching in for your pension, you can file for your Superannuation return and get your refund.
As a working holiday maker (WHM), the ATO will tax you, but you’ll get 35% of your total account balance back. So don’t miss out on claiming what’s yours. This could be the perfect way to end your Australian adventure.
Income tax or Super refund?
Income Tax Refunds
Have you worked in Australia on a 417 or 462 visa?
Are you a resident for tax purposes?
If yes to both and you are from UK, Germany, Finland, Chile, Japan, Norway, Israel or Turkey you are eligible for an income tax refund!
Super Refunds
Did you leave Australia permanently? Did your emlpoyer has made pension contributions on your behalf? If yes, you are eligible for Super refund!
Three options to get your tax back
1. Use a Tax Agency
Just like you did at home, a tax agent can help make sure you get all the money that is rightfully yours. Of course, this takes a lot of hassle out of the process and can help to maximize your refund. They do charge for this service but by using their expertise and experience you could actually end up with more in your pocket without doing the work.
Best for
People who want to maximise their returns or hate paperwork.
If you’re looking to maximize your tax refund Taxback are dedicated to the needs of backpackers. Their team is ready to guide you through the process, making it hassle-free and efficient.
2. DIY – Online
The Australia Tax Office (ATO) enables you to prepare and lodge your tax return online. This is a free service and is as safe and secure as using a government website can be.
However as a backpacker, there can be challenges, for example, the ATO needs to verify your identity before accepting your tax return lodgement. If this is your first time to lodge a tax return and a temporary resident of Australia, it can be a challenge to prove your identity without previous notice of assessment (NOA) issued by ATO.
In addition, proving your tax residency may not be straight forward and if you can’t prove it, you will not be able to get a refund.
Best for
Simple returns. For example, if you had only one employer and have your PAYG or final payslip. It is also very helpful if you have already lodged a return previously.
3. DIY – By Mail
You can use the individual tax return instructions to complete your tax return and lodge it by mail. Most refunds are issued within six weeks of lodgment. The individual tax return instructions contain two tax return forms and a set of instructions that explain how to fill out your tax return, section by section.
Best for
Simple returns (see above) and those who do not have access to a computer
Paper copies of these products are also available:
- Newsagents (between July and October)
- ATO’s shopfronts
- By phoning our Publications Distribution Service on 1300 720 092.
FAQs
I am a non-resident for tax purposes, what can I do?
If you’ve already applied and your tax return is marked as a non-resident, it means the ATO thinks you haven’t shown enough residential behavior to be seen as a resident for tax purposes.
But, you can challenge their decision. You just need to be ready to provide enough proof that you’ve lived at the same address or area for 183 days or more during the relevant tax year.
It's my first time to apply for taxes, any advice?
If you haven’t done it before, you might still be considered a resident without showing any documents to prove where you live.
But, you’ll need to fill out a residency questionnaire with details about where you stayed. ATO will then decide if you’re a resident based on that questionnaire. If they say you are, you’ll get your refund without the need to provide proof of your residency.
What is the difference of Resident and Non-Resident?
Residents for tax purposes can receive a full refund of their taxes if their income is AUD 18,200 or below. Non-residents on the other hand cannot avail of the tax-free threshold and that is why a lot of backpackers end up without a tax refund.
