New tax rates for working holiday makers
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 as an employer
If you employ a working holiday maker who is in Australia on a 417 or 462 visa, you:
- must register with the ATO to withhold at the working holiday maker tax rate
- can visit border.gov.au/vevo to check a 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 will 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