From 1 January 2017, tax rates changed for
working holiday makers who are in Australia on a 417 or 462 visa (these rates are known as ‘working holiday maker tax rates').
If a business employs a working holiday maker in Australia on a 417 or 462 visa, from 1 January 2017, they should withhold 15% from every dollar earned up to $37,000, with foreign resident tax rates applying from $37,001.
Businesses must register with the ATO by 31 January 2017 to withhold at the working holiday maker tax rate.
If they don’t register, they will need to withhold at the foreign resident tax rate of 32.5% (and penalties may apply to businesses employing holiday makers that don't register).
Also, note that businesses already employing working holiday makers will need to issue two payment summaries (with different rates) this year – one for the period to 31 December 2016, and a second for any period from 1 January 2017.
- Super changes may require action by 30 June 2017
- Tax officers "hit the streets" to "help small businesses"
- Reduction in FBT rate from 1 April 2017
- No overtime meal allowance, no overtime meal deduction
- Diverting personal services income to SMSFs
- Making 'intangible' capital improvements to pre-CGT assets
- Ride-Sourcing is 'Taxi Travel'
- Deductibility of expenditure on a commercial website
- ATO Data Matching Programs Activated
- Changes to the ‘Backpacker Tax’