Backpacker tax starts Jan 1

New tax rates will apply from 1 January 2017     

From 1 January 2017 tax rates are changing for working holiday makers who hold 417 and 462 visas. These rates are known as working holiday maker tax rates.

What you need to do

If you employ a working holiday maker who is in Australia on a 417 or 462 visa, you:

›            must register with with the ATO to withhold at the working holiday maker tax rate

›             visit border.gov.au/vevo to check your worker has a 417 or 462 visa using the Visa Entitlement Verification Online service

›             must withhold tax at  15% on income up to $37,000 and apply foreign resident tax rates on income over $37,000.

What happens next

The working holiday tax rates only apply to income earned from 1 January 2017.

If you currently employ working holiday makers you’ll need to issue two payment summaries this year:

›            one for the period to 31 December 2016

›             a second for any period to 30 June 2017.For more information  go to the ATO website