Backpacker Tax – Have you registered ?

If you employ working holiday makers in Australia on a Visa Subclass 417 or 462, you would need to make some changes to their employment record for the new backpacker tax, applicable from 1 January 2017.

From 1 January 2017, the working holiday maker tax rate of 15% applies from the first dollar earned, up to $37,000 with foreign resident tax rates applying from $37,001.

They cannot claim the tax-free-threshold regardless of their residency status and must provide a tax file number (TFN), otherwise you need to withhold at the top rate of tax.

You must register to withhold at this rate before your first payment to a working holiday maker by 31st January. Penalties apply if you employ a working holiday maker with visa subclass 417 or 462 and you don’t register as an employer of working holiday makers.

To register please visit the below link:https://www.ato.gov.au/twhm/