Monthly Archives

December 2016


What To Do If You Employ Backpackers

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From 1 January 2017 tax rates are changing for working holiday makers who hold 417 and 462 visas. These rates are known as working holiday maker tax rates.

What you need to do :-

If you employ a working holiday maker who is in Australia on a 417 or 462 visa, you:
› must register with us to withhold at the working holiday maker tax rate
› can visit to check your worker has a 417 or 462 visa using the Visa Entitlement 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

What happens next :-

The working holiday tax rates only apply to income earned from 1 January 2017.

If you currently employ working holiday makers you’ll need to issue two payment summaries this year :-
› one for the period to 31 December 2016
› a second for any period to 30 June 2017

Click on the link below for more details and also to Register Employees and check Visa’s


The Working Holiday Maker Tax

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More from James Nott, ProAdvice and “The Working Holiday Maker Tax” (Backpackers’ tax).

Last week, it was finally passed by Parliament. This was the last sitting date for both houses for this year.

The tax rate is 15 percent.
The tax on backpackers’ accumulated superannuation when they leave Australia has been reduced from the proposed rate of 95 percent to 65 percent.

James Nott.   B.Com, CA, CTA