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Changes to tax rates for working holiday makers

Tax rates for working holiday makers who are in Australia on a 417 or 462 visa have changed.

From 1 January 2017, employers who employ a working holiday maker in Australia on a 417 or 462 visa:
– Must withhold 15 per cent from every dollar earned up to $37,000 with foreign resident tax rates applying from $37,001.
– Must register with the Australian Tax Office by 31 January 2017 to withhold at the working holiday maker tax rate.
– If you do not register, you will need to withhold at the foreign resident tax rate of 32.5 per cent.
– Penalties may apply if you employ holiday makers but do not register.

For employers who already employ working holiday makers, you 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.

This entry was posted on Thursday, January 19th, 2017 at 12:09 am and is filed under tax. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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