From 1 January 2017 tax rates are changing for working holiday makers who hold 417 and 462 visas. These rates are known as working holiday maker tax rates.
What you need do
If you employ a working holiday maker who is in Australia on a 417 or 462 visa, you:
If you, as an employer, do not register, then you must withhold tax at 32.5% for the first $37,000 of a working holiday maker’s income. From $37,001, normal foreign resident withholding rates apply.
Penalties may apply for failing to register.
What happens next?
The working holiday tax rates only apply to income earned from 1 January 2017. If you currently employ working holiday makers, you will need to issue two payment summaries this year:
If you have any queries or would like some assistance with this matter, please don’t hesitate to get in touch with our team at firstname.lastname@example.org or on +61 2 9299 9920.
From the accounting team at Cohen & Krass – where in-depth knowledge and extensive experience combines to give you the service and solutions you deserve.