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  • P.O. Box 121 Surry Hills NSW 2010 Australia
  • 1300722878

New tax rates to apply to Working Holiday Makers

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.

If you employ (or plan to employ), working holiday makers, you must register with the Australian Tax Office (ATO) in order to apply the new tax rates.

Once you register, a withholding rate of 15% applies to the first $37,000 of a working holiday maker’s income. From $37,001, normal foreign resident withholding rates apply.

If you do not register, you must withhold tax at 32.5% for the first $37,000 of a working holiday maker’s income from 1 January 2017. From $37,001, normal foreign resident withholding rates apply. Penalties may apply for failing to register.

REGISTRATION

To register your business, click here.

To view further information on the changes, click here.

NEED HELP?

Contact the Australian Tax Office on 13 28 66