Working holiday makers or the better known “Backpackers” will see a few changes this tax year due the changes in tax rates on January 1st 2017. The ATO has advised that the recent change to tax means that there are a few extra steps involved when preparing an income tax return.
DON’T WORRY – Our team at Forward Focus can help!
If you’ve hired any “Backpackers” you can use the list below to make sure you adhere to the ATO guidelines.
- You’ve registered with the ATO to withhold at the 15% Tax rate and not the foreign tax rate.
- For each worker you have hired, you’ve checked their visa to be certain they can work in Australia.
- You are aware that you are to withhold 15% tax from every dollar up to $37K after which the foreign tax rate applies.
- Two Payment Summaries must be issued if they were employed before and after January 1st 2017.
Some penalties may apply if you don’t adhere to the ATO guidelines. Working holiday makers cannot claim the tax free threshold and if you choose not to register at the 15% Tax Rate, you’ll need to withhold at the foreign resident rate of 32.5%. If you have any queries regarding working holiday makers, don’t hesitate to contact us on (08) 9474 6333 or drop by our South Perth office for an in-depth conversation about it.
Due to the complicated nature of the tax rates, our team at Forward Focus is well equipped to help you with your tax return as two payment summaries are required for the income earned between;
1 July 2016 – 31 December 2017
January 1st 2017 to 30 June 2017
If you require more information on working holiday makers and the new tax rates, follow the links below or contact our office on (08) 9474 6333.
WHERE TO REGISTER FOR THE 15%