Immigration Update: Australia – Changes to working holiday maker tax arrangements
5 October, 2016
Changes to working holiday maker tax arrangements
The Treasurer has announced changes to the working holiday maker tax arrangements as a result of the recent review conducted by the government.
From 1 January 2017, the government will set the tax rate applying to working holiday makers at 19% on earnings up to $37,000, rather than the 32.5% announced in the 2015-16 Federal Budget, with ordinary marginal tax rates applying after that.
To generate more accurate data and boost integrity of the scheme, employers will be required to undertake a once-off registration with the ATO. Employers who do not register will be required to withhold tax at the 32.5 per cent rate. Working holiday makers will be made aware of registered employers via the publication of a list on the ABN Lookup.
The government also announced further initiatives to deal with the integrity of the working holiday maker scheme and to attract more working holiday makers.
To offset the Budget impact of the proposals, there will be an increase of the Passenger Movement Charge by a one-off amount of $5.00 and an increase of the rate of tax on the Departing Australia Superannuation Payment for working holiday makers to 95% from 1 July 2017.
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Tel : +61 2 9262 4477
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