Tax question on 457 visa secondary applicant

[seanOZ]

Hi guys,

I just have a brief question in relation to taxation on a 457 Visa.

I am the primary applicant and my wife is the secondary applicant on my Visa application. And I just want to find out if she will be taxed the same as myself.

Thanks

Sean

[Caz]

The tax experts will answer this better, but yes - she will. She will have to apply for her own TRN and will also be taxed as a non-resident.

[Nev]

My wife and I have the same situation

From a tax perspective both you and her work the same as any other auzzie from a tax perspective,

You will be able to claim back your medicare tax payments using a medicare exemption certificate which will get you a few hundred bucks back each year but the rest is the same

[Mara]

Once she spends more time in Australia than in South Africa, she would become Australian Tax Resident, it has absolutely nothing to do with the visa you are on!

[SurferMan]

If you are in Aus and earn income here you are assessed as being ordinarily resident for tax purposes.

[Caz]

Oops, my bad.

**** She may be taxed at a higher rate (money withheld) if she does not have her own TFN? [note, I even managed to get the wrong acronym in the first time :-) ]

[SurferMan]

She would do if she doesn't have one. ATO make that clear on their website, Mercifully it is not like SA and an easy online process.

[fouche's]

Generally, in Australia individual taxpayers could be:

1. Tax Residents - taxed on world-wide income
2. Temporary tax residents - individuals on temporary visa's - subject to tax on Australian source income only (salary earned in Aus, rental property in Aus and int on Aus bank account etc) and not world-wide income(not on RSA income)
3. Non-residents - individuals pay tax at non resident tax rates and withholding tax rates on rental property in Aus, int on bank accounts etc

Determining the categories above is normally based on the residency tests and is a fairly complex area and based on individual circumstances.

Generally persons on a 457 visa (and spouse and children) will be temporary tax residents thus subject to tax on their Australian income. Certain temporary residents are not entitled to Medicare benefits and can claim back the Medicare levy paid when completing their tax return. Some temporary tax residents (including 457 visas) ARE entitled to Medicare benefits and can NOT claim Medicare exemption eg some UK and NZ passport holders.

Regards

Louis