Document ID: chunk:federal_register_of_legislation:C2016A00092:clause:1_6
Version: federal_register_of_legislation:C2016A00092
Segment Type: clause
Provision Reference: sch 1 cl 6
Character Range: 4148–5539

6  At the end of Part II of Schedule 7
Add:
 4. If the non‑resident taxpayer is a working holiday maker at any time during the year of income:
 (a) count the taxpayer's working holiday taxable income for the year of income as the first parts (starting from $0) of the taxpayer's ordinary taxable income for the purposes of the table in clause 1; and
 (b) do not apply the rates in that table to that working holiday taxable income; and
 (c) do not count that working holiday taxable income when working out the taxpayer's taxable income for the purposes of clause 2 or 3.
Note: The rates for the taxpayer's working holiday taxable income for the year of income are set out in Part III.
Example: Rosie earns a $60,000 salary while a working holiday maker from 1 July 2017 to 31 March 2018. She also earns $29,000 while holding a different class of visa from 1 April 2018 to 30 June 2018.
 The $60,000 salary is Rosie's working holiday taxable income and is the first part of her ordinary taxable income. Under Part III, she pays tax at the rate of 15% on $37,000 of that salary, and tax at the rate of 32.5% on the remaining $23,000 of that salary.
 The $29,000 income makes up the remaining parts of Rosie's ordinary taxable income. Under clause 1 of this Part, she pays tax at the rate of 32.5% on $27,000 of that income, and tax at the rate of 37% on the remaining $2,000 of that income.