Scruffy backpackers tax

You would have remembered a whole lot of hoopla in the press about working holidaymakers. After much debate, the bill progressed through Parliament to Royal assent without amendment.

If you employ working holidaymakers from 1 January 2017 please take note:

In addition to all the paperwork required for a new employee;

  1. please sight and take a copy of their Visa and
  2. head to the ATO website and register them as a working holidaymaker using your ABN

If you do this, you’re entitled to withhold PAYG tax at the concessional rate of 15% of their taxable income up to $37,000 and a marginal rate of tax thereafter.

Beware! If you fail to follow the above procedure then the WHM will need to be taxed at the higher non-resident tax rates.  If you fail to do this, the Commissioner will make you liable for any difference.

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