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.
This post first appeared on HTA Advisory Blog - Tax Accounting Services, please read the originial post: here
