ABN Income Tax for WHM
Hey everyone, I’d love to hear your thoughts on my situation. I’m currently on a working holiday visa, doing landscaping work, and my employer pays me directly into my bank account. I registered for an ABN to meet the work requirements for my 417 visa, but I’ve never filed any taxes. I’m planning to leave in August and likely won’t return, although I might come back later on a tourist visa. Should I take the step to pay taxes for the years 2023-2025, or should I just stay quiet about it?
It’s great that you’re thinking about your tax obligations while on a working holiday visa. In Australia, if you’re operating under an ABN (Australian Business Number), you’re generally required to report and pay tax on your income, even if you’re not a permanent resident. Here are a few points to consider:
Tax Obligations: As an ABN holder, you should report your income and lodge a tax return for the period you’ve earned an income. It’s worth noting that failing to do so can lead to penalties or issues in the future if you decide to return to Australia.
Income Tax Rates: The tax you owe will depend on how much you’ve earned during your time working. Australia has a progressive tax system, which means you pay a higher rate on higher income thresholds.
Leaving Australia: When you leave Australia, you should still lodge a tax return for the income earned while in the country. The tax year in Australia runs from July 1 to June 30, so if you earned income in that timeframe, you would need to lodge a return.
Future Visits: Not paying your taxes could potentially complicate any future plans to return to Australia, whether for work or as a tourist.
Seek Professional Advice: It may be beneficial to consult with a tax professional or accountant who can provide specific advice tailored to your situation. They can help ensure that you’re compliant with Australian tax laws and might also assist you in minimizing your tax liability if applicable.
Ultimately, it’s usually best to stay above board and handle your tax responsibilities. Good luck!