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The working holiday maker net income worksheet is completed at item A4 in the Individual return. Integration to this worksheet is from Foreign or Australian PAYG Payment Summaries with the Code H, entered at Item 1 - Salary or wages.

 

Click the label to open the worksheet. Enter any work-related deductions at items D1 to D10 that directly relate to earning working holiday maker income.

Tax at the special whm rate is calculated on the net income amount entered at A4, label D.

  • Amounts at A4 label D up to $37,000 attract tax at the rate of 15%.

  • Amounts greater than $37,000 attract tax at standard non-resident rates commencing at 32.5%.

Example 1

To complete the worksheet
  1. Answer the Visa question:

    The ATO has data matching records for 417 and 462 working holiday visa recipients. MYOB does not; therefore, it is important that you answer the WHM Visa question.

  2. Enter the whm income at Item 1 - Salary or Wages.

    Item 1 - Labels C, D, E, F, and G

    Labels C and D are available for direct entry for the first two of any payment summaries. Labels E and F are contained in the Excess payment summary worksheet (egc). The sum of all such egc entries is integrated to label G. Each entry is output and lodged as a separate entry.

  3. Select the Salary or wages code:

    A new GROSS PAYMENT TYPE code H should be shown on the payment summary if the tax-payer is a WHM. Note that if the employer has not installed new software containing the revised payment summary, it may or may not show the code H. If the period covered by the payment summary is on or after 1 January, then you should check that your non-resident client has a 417 or a 462 visa before selecting code H for the entry.

    The code G is an MYOB code that identifies WHMs who may be receiving a foreign payment summary with the code H. You must select G, so that the foreign tax paid can be passed to the label U at the foreign income item 20 and included in the calculation of any Foreign income tax offset (FITO) the taxpayer may be entitled to. When the code is output for lodgment, it will be output as H for ATO purposes.

    The ATO advises that when an income tax return is lodged for an individual who is identified as a non-resident (that is, they are a 417 or 462 visa holder), if their residency status is incorrectly stated as resident, they will be assessed as a non-resident.

    The amount entered at item 1 with the code H (Australian) or G (Foreign WHM employer) income will be passed to the top field in the whm worksheet.

  4. Enter any D1 to D10 expenses.

  5. Go to item A4 and click label D.

  6. The rules are contained in the information box below the header.

  7. Enter any part of the D1 to D10 work-related expenses you have claimed at D1 to D10 that relate to earning the eligible whm income.

    D05 $20

    D10 $100


  8. MYOB Tax calculates the net income to integrate to A4 label D.

    (19808 - 120) = 19688

    Tax on 19688 @ .15 = $2,953.20


 

CCH References

26-277 PAYG: Working holiday makers

21-033 Residence

42-018 Tax Rates