Changes to the ‘backpacker tax’

By  •  January 30, 2017 at 12:17 am  •  0 Comments

18 January 2017

This article has been updated.

On 1 January 2017, tax rates changed for working holiday makers who are in Australia on a 417 or 462 visa.

What does this mean for you?

If you currently employ a working holiday maker on a 417 or 462 visa:

  • You must register with us by 31 January 2017 so you can withhold the correct amount tax.
  • From 1 January 2017, you should withhold 15% from every dollar earned up to $37,000 with foreign resident tax rates applying from $37,001.
  • If you employed a working holiday maker before and after 1 January 2017, you need to issue two payment summaries for this financial year
    • one for income earned up to 31 December 2016 (using code S)
    • one for income earned from 1 January 2017 (using code H).
  • If you don’t register, penalties may apply and you’ll need to withhold at the foreign resident tax rate of 32.5%

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