YOUR EMPLOYMENT AND TAX STATUS
You will have employed status. This means that the employer will pay tax to the Australian Tax office (ATO) for you.
As a working holiday maker this is at 15% from the first dollar you earn, and this will be deducted from your pay by the employer. This rate can change for various reasons, and any money due to or from the ATO will be adjusted at the end of each financial year when you make your tax return. The financial year runs from 1 July to 30 June.
You are able to reclaim this at the end of each financial year. To do this you will need to keep a good record of
1. Your employment agreement and contract
2. Your pay (on pay slips given to you by your employer each time he pays you)
3. Your expense receipts (for all expenses related to your work, which includes travel to your workplace, travel for work, (not daily travel to and from home), work clothing, tools and equipment, food when travelling with work) We recommend using a tax agent company to help you with this. It does cost you, but normally helps you to get the best possible amount returned to you. We have given links to several such companies at the bottom of this page.
SUPERANNUATION – KNOWN AS ‘SUPER’
Super is 10% (rate will be increased in July 2022) paid into a special type of pension account for your future. It is extra to your pay. When you are employed it is a legal requirement for the employer to pay this for you.
You can reclaim this (or most of it) when you leave Australia. We recommend using a tax agent company to do this. We have given links to two at the bottom of this page.
ADMIN AND PAPERWORK
To be correctly registered for tax you will need
- A tax file number
- An Australian bank account
- Digital copies of
- Your ID (passport)
- A signed letter of engagement from your employer.
We recommend that you take paper copies of all your documents, and also make digital copies. Email them to yourself, and store them on a USB, on your phone AND in the cloud.
INSURANCES
Your employer should also provide you with workcover insurance. This give you some protection and financial benefits if you are injured and unable to work while you are recovering.
You will also have your own ‘work and travel’ insurance. This covers you for the costs of medical treatment if required, and also for repatriation to your won country. This is essential.
TAX AGENTS
There are many of these available.
One of the most experienced in working with working holiday makers is Taxback.com. They can help you with annual tax return, tax refunds, and superannuation refund after you have left Australia. It will help you to quote reference XXX as they have agents who are familiar with our programme.
However you may prefer a small company with personal contact. In this case we recommend YYY.
RECORD KEEPING
To get the most back from your tax and super reclaims you will need to keep good records.
EXPENSES
We suggest keeping a spreadsheet (google sheets) list of your expenses with the following headings. Keep it up to date every day, or at least every week.
Also take photos or scan all you receipts on your phone. If possible add them to the spreadsheet.
Save them in a folder, clearly named and in date order, both online and in the cloud.
PAY
You will also need to keep a good record of the pay you receive. Ideally this will also be in a spreadsheet so you can track the totals. You can take the information from your payslips.
It will also help to make / keep copies of the statements from your Australian bank account to prove the amounts you received.
You will also need to keep a good record of the pay you receive. Ideally this will also be in a spreadsheet so you can track the totals. You can take the information from your payslips.
It will also help to make / keep copies of the statements from your Australian bank account to prove the amounts you received.