Australian Working Holiday Visa - changes to tax rate

Australian Working Holiday Visa – Changes to tax rate

Australian Working Holiday Visa – Changes to tax rate

As you may or may not have heard there has been a huge debate over the amount of tax working holiday makers in Australia should be paying.  As of the 1st January 2017 working holiday makers on a 417 or 462 visa will be required to pay 15% on income earned up to $37,000.

So what does an employer have to do if they are looking to employ a working holiday maker?

The employer must already be registered as a Pay As You Go (PAYG) withholding or have a withholding payer number.  Once they are registered they will need to go to the ATO website to complete the Working Holiday Maker Employer Registration Form .

Once registered, a withholding rate of 15% applies to the first $37,000 that the working holiday maker earns.  Once the working holder maker earns more than $37,000 their withholding rate increases to 32.5%.  If you don’t register, you must withhold 32.5% of income earned up to $87,000 with foreign resident withholding rates applying to income over $87,000.

 

 

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