Private ruling: Residency for taxation purposes – tax rates - bridging visa A after working holiday maker
Date of advice: 1 April 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you a resident of Australia for income tax purposes? | A1: Yes. Having considered your circumstances as a whole and the relevant residency tests, you are a resident of Australia for income tax purposes. Further information on residency can be found by searching 'QC 33232' on ato.gov.au | Q2: Are you subject to the Working Holiday Maker tax rates for the period you work under a Bridging Visa A, before the commencement of a Partner Visa in Australia? | A2: No, the Working Holiday Maker (WHM) tax rates take effect during the period you are considered to be a WHM. The end of the WHM Visa marks the date new tax rates are to be applied. In this case, you are not subject to the WHM tax rate from the cessation of your WHM Visa. The following is the definition of a working holiday maker: An individual is a working holiday maker at a particular time if the individual holds at that time: a) Subclass 417 (Working Holiday) visa; or b) a Subclass 462 (Work and Holiday) visa; or c) a bridging visa permitting the individual to work in Australia if: i. the bridging visa was granted under the Migration Act 1958 in relation to an application for a visa o f a kind described in paragraph (a) or (b); and ii. the Minister administering that Act is still to make a decision in relation to the application; and iii. the most recent visa, other than a bridging visa, granted under that Act to the individual was a visa of a kind described in paragraph (a) or (b) (subsection 3A(1) of the Income Tax Rates Act 1986 ).

Relevant facts and circumstances: You entered Australia on a Working Holiday Maker (WHM) Visa (417) late 20XX. You did not travel around but took up residence with your partner and sought permanent employment. You started working for an employer early 20XX and were subject to WHM taxation rates. You applied for a Partner Visa 820 mid 20XX. A Bridging Visa A was granted mid 20XX. The WHM Visa ended late 20XX at which point the Bridging Visa came into effect. The employer withheld at the WHM tax rates from the beginning of your employment until late 20XX after which you were taxed at normal resident tax rates. The Bridging Visa ended after the decision was made on the Partner Visa application. The Partner Visa was granted late 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1997 subsection 995-1(1)