Did you know 417 and 462 Visa Holders are taxed at a higher rate…
Let’s start with the bridging visa rules… then go onto the tax rules…
A Bridging visa (BVA) allows you to remain lawfully in Australia until a decision is made on your substantive visa application.
If you still hold a current substantive visa when your BVA is granted, you must continue to comply with any conditions that are on that substantive visa. When your substantive visa ends, the conditions of your BVA will apply.
A BVA does not let you return to Australia if you leave.
If your BVA does not let you work in Australia, or has restrictions on working, you can apply for another BVA that lets you work. To be considered for a BVA that lets you work, you will usually have to demonstrate that you are in financial hardship. Further information…. Working in Australia while you hold a BVA
A BVA lets you temporarily stay in Australia. It will usually end when you leave Australia. If you travel outside Australia, you need a visa to return. Further information Travelling outside Australia while you hold a BVA
Website for current information https://www.homeaffairs.gov.au/trav/visa-1/010-
Tax rules for 417 / 462 Working Holiday and Bridging visa’s
If you work in Australia, tax will be withheld from your pay and you may need to lodge a tax return each year. The requirement to lodge a tax return will depend on how much income you have earned during the year.
The Australian income year starts on 1 July and ends on 30 June the following year.
As a working holiday maker either on a 417 or 462 visa the first $37,000 of your income that’s from $0 – $37,000 is taxed at 15% and the balance is taxed at ordinary rates. You are a working holiday maker if you have a visa subclass: link
That means if you obtain a bridging visa to stay in Australia whilst on a 417 or 462 working holiday visa you are bound by the visa rules of the working holiday visa and also the tax rules around those visa’s…
If you would like further clarification please look at the links above or contact us with your visa/visa tax questions [email protected]