Working holidaymakers and tax returns

If your business employs working holidaymakers – or you’ve been one yourself this year! – you need to satisfy the “backpacker tax” s that came into effect from 1 January 2017.

Employers needed to issue two payment summaries to each working holidaymaker with the income apportioned before and after 1 January 2017. Only one summary is issued for 2018.

If the right visa is held (471 or 462 are most common) the tax rate is:-

0 - $37,000 15% each dollar

$37,000 - $87,000 32.5% over $37,000

etc

Employers must register their intention to hire working holiday makers.

It is advisable not to attempt to comply with these rules without help.

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