Working Holiday Visa 417 – Age Increase

On 1 July 2017, the Department of Immigration and Border Protection announced positive changes to the Working Holiday Visa (417). This visa allows people from certain countries to come and stay in Australia for one year, with the option to extend their stays again on this visa for another year.

Previously, the age limit was 30. It is now being increased for certain countries (unknown as yet), to 35.

The other standard requirements will remain in place. As an overview, these include:

  • Have not previously entered Australia on a 462 Visa.
  • Are a genuine Visitor
  • Not be accompanied by any of your dependent children
  • Have enough funds (around $5,000 will suffice)
  • Are at least 18, but younger than 31
  • Have a passport from one of the specified countries

To obtain the second working holiday visa (the extension), you need to complete three months of specified work while on your first working holiday visa. You also need to continue to comply with your visa conditions (such as the 6 month employer restriction).

This is a low cost visa, that allows young people to stay in Australia, experience Australia and use this time working towards their permanent visa application.

If you would like advice and guidance on this visa, please do not hesitate to contact us.

New Zealand Visa

New Zealand Citizens have recently been one of the winners following the implementation of a new permanent visa. This is not a points tested visa. Instead, if you can prove that you received a minimum taxable income for 4 out of 5 years, you are eligible to apply for this visa (among other requirements). There are exemptions to the taxable income requirement in circumstances of parenting orders, or disability.

Other requirements are the residence. You need to have been resident in Australia for 5 years before 19 February 2017.

Minimum Amount of Income:

2011-2012 is $49 330

2012-2013 is $51 400

2013-2014 is $53 900

2014-2015 is $53 900

2015-2016 is $53 900

2016-2017 is $53 900

We are happy to provide further guidance on your eligibility. You can contact us on 07 55 38 38 70 or at info@evenlegal.com.au

Tax implications for spousal payments

If you are receiving spousal maintenance, you should consider the tax consequences of these payments. Ordinarily, payments that you receive from your ex-partner that come within the definition, are exempt from tax.

The Income Tax Assessment Act 1997, section 51.50 states the requirements to for the payments to be exempt from tax (i.e no tax needs to be paid, as it is not assessable income).

The requirements are:

  1. The payment is made to an individual who is or has been the maintenance payer’s spouse;
  2. to or for the benefit of an individual who is or has been:
    1. child of the maintenance payer; or
    2. a child who is or has been a child of an individual who is or has been a * spouse of the maintenance payer.
  3. The maintenance payment is not exempt if, in order to make it or a payment to which it is attributable, the maintenance payer:
    1. divested any income-producing assets; or
    2. diverted * ordinary income or * statutory income upon which the maintenance payer would otherwise have been liable to income tax.

Essentially, if you are receiving spousal maintenance in the ordinary course of things, it is exempt. If however, the spousal maintenance is paid above what is normally required in an attempt to minimse tax, this is tax avoidance which can be penalised, as well as the payments no longer being tax exempt.