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.
- Change to travel expenses for truck drivers
- ATO warning regarding work-related expense claims for 2017
- Extension of the $20,000 SBE Immediate Deduction Threshold
- Simpler BAS is coming soon
- Who is assessed on interest on bank accounts?
- More taxpayers can access the benefits of being an 'SBE'
- 2017/18 Federal Budget
- Changes to the franking of dividends
- Increase to SBE Turnover Threshold
- Super changes may require action by 30 June 2017