Extended registration for employers of working holiday makers (backpackers)…
As long as you register by 31 January 2017, you will not be penalised and you can still use the new withholding tax rate of 15% from 1 January 2017.
Who can hire working holiday makers?
Anybody can hire working holiday makers, especially if there is a need of labour for a short period of time.
Agriculture, hospitality, construction and domestic services often use working holiday makers, or backpackers, to meet this demand.
Who are entitled to be working holiday makers?
Working holiday makers hold a visa subclass 417 or 462 that allows them to work while in Australia. You should not employ or pay someone for work if they don’t have permission to work in Australia.
Working holiday makers’ tax rate
From 1 January 2017, the working holiday makers’ tax rate of 15% applies from the first dollar earned. They cannot claim the tax-free-threshold regardless of their residency status and must provide a tax file number (TFN), otherwise you need to withhold at the top rate of tax.
If eligible, working holiday makers remain entitled to superannuation.
How to employ working holiday makers
To employ working holiday makers in Australia on a visa subclass 417 or 462, you:
Must register with the ATO to withhold the working holiday maker tax rate before your first payment to a working holiday maker
