Backpacker deadline looms
THE long debate over the backpacker tax came to an end last year, with parliament finally passing a 15 per cent tax rate on working holiday makers earnings.
Employers of working holiday makers have until January 31 to register with the Australian Taxation Office (ATO).
To employ working holiday makers in Australia (on visa subclass 417 or 462) employers must register with the ATO, and also be certain that the foreign workers in the employ hold either of the eligible visa subclasses.
According to the ATO, penalties apply for employers if they fail to register on time.
Resources for employers to register are available on the ATO website.
The 15 per cent tax rate applies to every dollar earned by a working holiday maker from January 1. If an employer doesn’t register their business as employing working holiday makers by January 31, they must withhold tax at 32.5 per cent for the first $37,000.
Penalties apply to employers that don’t register as employing working holiday makers.
Visit the ATO website for more information.