The Government has recently enacted legislation to change the tax rates for working holiday makers with visa sub-class 417 and 462 from 1 July 2017.
If you employ working holiday makers, you will need to register with the ATO. Once you are registered with the ATO, a 15% withholding rate applies to the first $37,000 of the working holiday maker’s income. From $37,001, normal foreign resident withholding rates apply.
Employers who do not register must withhold 32.5% tax on the first $37,000 and then apply the normal foreign resident withholding rates after that. Please contact us as soon as possible if you hire working holiday makers so we can assist you with the registration and tax withholding process.
DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent,
Jeanette has over 20 years experience as an accountant in public practice. She is a Chartered Accountant, registered tax agent and accredited SMSF Association advisor. When she is not helping business owners grow their empires, you will likely find her out running on the trails or lifting weights in her local CrossFit gym. Book in to see Jeanette today.