Backpacker tax is now law
Posted on December 7th, 2016 by WLF
The backpacker tax is now law.
From 1 January 2017 working holiday-makers will be taxed at a flat rate of 15% on the first $37,000 they earn. The normal tax rates will apply to any income in excess of $37,000.
Employers of working holiday makers will need to register with the ATO by 1 January 2017 to gain access to the lower withholding rate. This registration is a one off requirement. The method of registration will is expected to be announced in the next few days.
Related taxes such as the rate of the departing Australia superannuation payments tax will be 65% for working holiday makers from 1 July 2017 and the passenger movement charge of $60 will not increase for the 5 years following 1 July 2017.
If this affects your business and you would like to discuss any implications in more detail, contact the team at WLF online or by calling (03) 6223 6155 .
