- July 8, 2019
If you employ or plan to employ working holiday makers in Australia, you might need to read this paper.
What is a Working Holiday Visa ?
Working Holiday visas are designed to allow young people between the ages of 18 and 31 to travel to Australia for an extended holiday, and support themselves by working in Australia.
You can identify a working holiday maker as they will hold a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462).
What you need to do ?
- You should check your worker has the correct visa using the Visa Entitlement Verification Online service
- must register with ATO to withhold tax at the working holiday maker tax rate before making your first payment to them. Penalties may apply if you fail to register.
How to register ?
If your business has an active ABN, you can register as a working holiday maker employer online or through a registered tax agent or by phoning ATO business line.
How to tax a working holiday maker ?
Once you register as an employer of working holiday makers you must withhold tax for them:
- at 15% for the first $37,000 earned
- using foreign resident tax ratesfor income earned over $37,000.
If you don’t register as an employer of working holiday makers, you must withhold tax for them:
- at 32.5% for income earned up to $90,000
- using foreign resident tax ratesfor income earned over $90,000.
Penalties may apply for failing to register.
If you need any assistance on register as a working holiday maker, please contact our Business Mantra experts. You can call us on (08)9242 3555 or email us at email@example.com.