R&CA is reminding members that from 1 January 2017, new tax rates apply to working holiday makers with visa sub-class 417 and 462. A withholding rate of 15 per cent applies to the first $37,000 of a working holiday maker’s income. Beyond that, normal foreign resident withholding rates apply. If you currently employ working holiday makers, you should’ve registered with the ATO by 31 January. If you did not register, you may have to withhold tax at 32.5 per cent for the first $37,000 of a working holiday maker’s income from 1 January 2017. Furthermore, penalties may apply for failing to register. If you aren’t currently employing backpackers but plan to later in the year, you need not have registered by the deadline. You just need to register when you employ them.
To register your business or for advice, visit the ATO’s website or call 13 28 666.