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  • Changes to the ‘backpacker tax'

    Changes to the 'backpacker tax'

    21 February 2017

    This article has been updated.

    On 1 January 2017, tax rates changed for working holiday makers who are in Australia on a 417 or 462 visa.

    What does this mean for you?

    If you employ a working holiday maker on a 417 or 462 visa:

    • You must register with us so you can withhold the correct amount tax.
    • You should withhold 15% from every dollar earned up to $37,000 with foreign resident tax rates applying from $37,001.
    • If you don’t register you need to withhold at the foreign resident tax rate of 32.5% from the first dollar earned.
    • If you employed a working holiday maker before and after 1 January 2017, you need to issue two payment summaries for this financial year  
      • one for income earned up to 31 December 2016
      • one for income earned from 1 January 2017 (using gross payments type H).

    Remember, registered tax agents and BAS agents can help you with tax and super advice.

    Next steps:

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