Reclaiming tax from gap year in Australia

hoylake_2

My son worked for 3 months in an Australian bar in 2008 during his gap year. He has been told by the Oz tax authorities that he cannot reclaim tax whilst he worked there as he is British. If he was an Australian working here on a gap year he'd be able to recover his tax.
Does anyone know if he can reclaim the tax he paid?
HE holds both a UK and a New Zealand passport

TM1976

If he paid tax in Australia the only people he can claim it back from is the Australian Tax Office.

He needs to file an Australian tax return to do this.

http://www.ato.gov.au/individuals/content.asp?doc=/content/39979.htm

His income in Australia is taxable in the UK though.

hoylake_2

Thanks. He wouldn't pay tax in the UK because he earned less than his personal allowance. However, in Australia overseas students don't seem to get a personal allownce so he pays tax on all his income.

I assumed there would be some sort of agreement between the U K and Oz tax authorities that students from the Uk and Oz would be treated in a similar way, but this doesn't seem to be the case.

TM1976

hoylake wrote: »

Thanks. He wouldn't pay tax in the UK because he earned less than his personal allowance. However, in Australia overseas students don't seem to get a personal allownce so he pays tax on all his income.

I assumed there would be some sort of agreement between the U K and Oz tax authorities that students from the Uk and Oz would be treated in a similar way, but this doesn't seem to be the case.

There is, but the rules are slightly different. He probably doesn't get a personal allowance unless he is deemed to be resident.

If he files a tax return it should decide whether he is due a refund or not, in Australia people expect to have to file a tax return. He may get a refund just not of all the tax he has paid.

hoylake_2

Thanks. I spoke to the Oz authorities a few months ago and they confirmed he'd have to pay tax on all his income in Oz.

It doesn't seem like a very fair tax agreement.

A UK student goes to Oz earns £5k and pays say £1500 in tax whereas an Oz student comes to the UK earns £5k and pays £0 in tax. That seems very biased against the UK student to me.

TM1976

hoylake wrote: »

Thanks. I spoke to the Oz authorities a few months ago and they confirmed he'd have to pay tax on all his income in Oz.

It doesn't seem like a very fair tax agreement.

A UK student goes to Oz earns £5k and pays say £1500 in tax whereas an Oz student comes to the UK earns £5k and pays £0 in tax. That seems very biased against the UK student to me.

On a like for like basis no but it's down to a difference in the residency rules, if the was there for long enough to become temporarily resident he could have got some good tax breaks. The system is skewed so it doesn't give anthing to those who do a few months casual work.

If he'd filed an 07/08 tax return he would have got a $900 stimulus payment.