Tax residency rules to change for temporary working holiday makers.

In the 2015-16 Federal Budget, the government announced that it will change the tax residency rules for most people who are temporarily in Australia for a working holiday.

These people will be treated as non-residents for tax purposes, regardless of how long they are here. They will not be able to access the tax-free threshold and will be taxed at the second marginal rate (currently 32.5%) from their first dollar of income up to $80,000.

The change will take effect from 1 July 2016.

Legislation and supporting material

Legislation for this measure has not yet been drafted.

Find out more

2015-16 Budget Paper No 2 - Revenue Measures page 16External Link

End of find out more
    Last modified: 14 May 2015QC 45121