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.
- New FBT rates for the 2018/19 FBT year
- Continued ATO focus on holiday home rentals
- Get ready for Single Touch Payroll
- No need to actually 'downsize' for ‘downsizer contributions’
- Inactive ABNs will be cancelled by the ATO
- Super guarantee payable on ‘public holidays’ and ‘additional hours’
- New superannuation rates and thresholds released
- Taskforce to help digitise small business
- ATO warning regarding small business record-keeping
- Further 'affordable housing' measures passed