How To Claim Tax Back On Australian Working Holiday

Alison Condon

September 19th, 2024

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7 minute read

Trying to figure out your taxes can often be a bit of a mind boggle - especially when you’re doing it in a new country. But fear not, we’ve got the lowdown on how to claim tax back in Australia on a working holiday.

If you’ve been working for a registered Aussie employer as part of your working holiday visa (subclass 417) or work and holiday visa (subclass 462), then you can claim your tax back just like everyone else! Here’s how to get started:

Step-by-Step Guide to Claiming Your Tax Back

Before you go through the process of trying to claim tax back, be sure you have a registered Tax File Number (TFN) and that you have payslips or bank statements to prove your income. You’ll also need to be registered with the Australian Tax Office (ATO). You can do that through your myGovID account. Once you’ve got all of your documents together and you, you can get cracking! 

Understand Key Tax Dates and Deadlines 

In Australia, the financial year comes to an end on 30 June. Anyone working and making an income Down Under is required to file their taxes between and 31 October each year. If you plan on leaving Australia for good before 30 June, you can file your taxes earlier.

Once you’ve uploaded all of your documents and details within this deadline, the ATO will calculate whether or not you’ve been paying the right amount of tax. If it’s determined that too much of your working holiday income has been taxed, you’ll be entitled to claim tax back.

Determine Your Residency Status

Your residency in Australia makes a huge difference in how much tax you’ll be able to claim back. When you’re filing your taxes, you’ll see there are two options:

• A resident for tax purposes

• A non-resident for tax purposes

‘Residents’ will pay 0% tax on their first $18,200 and 19% tax on any income from $18,200 to $45,000. Meanwhile, ‘non-residents’ pay 15% tax on their first $45,000 of income.

Even if you have been living and working in Australia for some time, if you’re in the country on the working holiday visa or work and holiday visa, you will most likely be considered a non-resident for tax purposes.

There are a few exceptions to this. If you are from Chile, Finland, Germany, Israel, Japan, Norway, Turkey, or the United Kingdom, and you met the ATO’s residential requirements, you could be able to apply as a resident for tax purposes, and claim some extra money back - sweet!

Lodging Your Tax Return 

So, you’ve filed your taxes for the year with all of the correct information, and it turns out you’re owed some money. What next? 

Lodging a tax return online

There are a few different ways to lodge your tax return. The quickest and easiest way is to lodge online through your myGov account or the ATO app. Simply log in and find your ATO account, then look for a service called myTax. This service, which is available online 24/7 is totally secure, accessible on a smartphone, computer, or tablet, and gets your tax refund to you in two weeks or less. 

Lodging a tax return via post

You can also lodge a physical tax return by posting a paper copy of your tax return to the Australian Taxation Office. You can find step-by-step instructions on how to do this on the ATO website. Lodging your tax return via post can take a little bit longer, with refunds typically being issued within 50 business days.

Lodging a tax return with a tax agent

Alternatively, if tax returns are making you feel a little overwhelmed, you can also claim your tax back with a tax agent. First and foremost, be sure to double check, and then triple check that you are going to a registered tax agent with your returns! You’ll have to pay an agent to do your taxes for you, so you had better be sure that you’re working with the real deal. Tax agents can be super helpful if it’s your first time filing a return in a new country. But if you’re saving every penny, it’s worth taking the time to sit down and do it yourself.

How Much Tax Can You Get Back? 

It’s hard to say exactly how much tax you’ll get back, but online tax calculators can help you get a rough estimate. All you’ll need to use one of these calculators is your residency status for tax purposes, the total gross income you received this financial year, the total amount of tax that was withheld from your income, and the total amount of deductions you can claim.

Tips to Maximise Your Tax Refund

There are some simple tips and tricks you can follow to make sure you get the most out of your tax refund. 

If you’re going through a registered tax agent, they’ll likely use all of the following tips to help you maximise the money you can claim back. But if you’re doing your taxes solo, here are some pointers:

• Be sure your TFN is registered. You employer will withhold 45% of your wages if you don’t have a TFN yet, and you won’t be able to claim that money back unless the ATO knows that you have gotten a TFN since beginning your job.

• If you’re leaving Australia, claim back your superannuation. Your superannuation is money that has been taken out of your wages to pay into a pension system. But if you don’t plan on retiring in Australia, you can claim that money back when you leave the country or when your visa expires. Depending on what sort of super you’ve been paying, this can be a lovely little bonus, so be sure you don’t forget about it. This is an entirely separate process to claiming your tax refund. If you want to claim your super back, you’ll need to apply for a Departing Australia Superannuation Payment (DASP).

• Avoid easy mistakes. Be sure you’re not missing any essential documents before you file, check that your bank details are still up to date, and that you don’t miss the tax return deadline. These missteps can affect how much money you make back. 

• Don’t forget to claim deductions. If you’ve travelled for work or had to make purchases for your job, be sure to keep all receipts, as you’ll likely be able to claim money back from these. Those who need to move around Australia for work should keep a log of all travel and accommodation expenses and submit these along with your tax return statement.

What happens if I don’t claim my tax back?

If you don’t claim your tax back, not only will you miss out on a potential refund, but you could face repercussions from the ATO. 

Maybe you’ve already used an online tax calculator and determined that you’re not entitled to a good tax refund, but it’s worth your while to lodge your tax return anyway. For one thing, you could have forgotten about a small but important detail when trying to calculate your refund, and you might be owed more than you realise. 

But more importantly, you can face penalties and late fees for failing to file a tax return by the deadline time. Worse still, failing to file your taxes could result in being labelled by the ATO as non-compliant, which could affect future Australian visa applications or re-entry into the country.

Can I claim tax back if I’ve left Australia?

Yes, you can absolutely claim your tax back if you’ve already left Australia. The process laid out above is pretty much the same whether you’re following it from within Australia or outside of the country.

Just be sure to double check that the ATO has the most up-to-date bank details for you overseas, and don’t forget to apply for your DASP, too!

Take a look through our guide on all things working holiday for everything you need to know before you set off.

Planning to get some travelling done with that tax rebate cash? Take a look through our most popular tour itineraries for some inspiration.

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