New tax rates for working holiday makers

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New tax rates apply from the 1 January 2017.

From the 1 January 2017 the ATO are changing the tax rates for working holiday makers who hold 417 and 462 visas.

What you need to do:

If you employ anyone that holds either of these visas who is currently in Australia you will need to:

  • register with the ATO to withhold at the working holiday maker tax rate
  • visit border.gov.au/vevo to check your worker has a 417 or 462 visa using the Visa Verification Online service
  • must withhold tax at 15% on income up to $37,000 and apply foreign resident tax rates on income over $37,000.

Keep in mind, these rates only apply to income earned from the 1 January 2017.

If you currently employ working holiday makers, you'll need to prepare two payment summaries this financial year that highlight:

  • the period from 1 July 2016 to 31 December 2016
  • a second period from 1 January 2017 to 30 June 2017

If you have any queries regarding this please don't hesitate to contact your friendly accountant at HTA Advisory.

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Topics: ATO Updates

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