Private ruling: Tax rates for Bridging Visa A which connects Working Holiday Maker Visa to Employer Sponsored Visa
Date of advice: 29 October 2018
Published: February 2019
Ruling period: Year ended 30 June 2018.
Date scheme commenced: 1 July 2017.

Ruling: Q1: Are you subject to the Working Holiday Maker tax rates for the period you work under a Bridging Visa A, before the commencement of an Employer Sponsored Visa in Australia? | A1: 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. Note: you will need a Payment summary for WHM Visa income and one for when you are not on the WHM Visa.

Relevant facts and circumstances: You entered Australia on a Working Holiday Visa. Your WHV was for one year and did not allow you to stay in Australia permanently. In your first year you were employed by Company X and Company Y and were subject to Working Holiday Maker taxation rates. You applied to have your WHV extended for a second year. You left Australia while waiting for your application to extend the WHV was being processed. Your application was successful and you were granted a second year to your WHV. You returned to Australia. Towards the middle of your second year you started work for Company C. You currently hold this position. At approximately the same time you rented an apartment. This lease is set to expire in approximately six months. Your WHV was set to expire. Your employer submitted an Employer Sponsored Visa application to the Department of Home Affairs in order to engage you on a long term basis before your WHV expired. Your WHV expired and on the same day the Bridging Visa A (BVA) came into effect. There is currently no end date placed on the Bridging Visa A. The Department of Home Affairs will determine this when the Employer Sponsored Visa application has been processed.

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