Back­packer dead­line looms

Port Douglas & Mossman Gazette - - BUSINESS -

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.

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