ATO employer registration: working holiday makers
The tax rates have changed for working holiday makers with visa sub-class 417 and 462 and apply from 1 January 2017.
If you employ (or plan to employ), working holiday makers, you must register with the ATO.
Once you register, a withholding rate of 15% applies to the first $37,000 of a working holiday maker’s income. From $37,001, normal foreign resident withholding rates apply.
If you do not register, you must withhold tax at 32.5% for the first $37,000 of a working holiday maker’s income. From $37,001, normal foreign resident withholding rates apply. Penalties may apply for failing to register.
Read all the ATO detail here.
Working holiday makers income tax rates
The following tax rates for 2016–17 apply for working holiday makers holding a subclass 417 or 462 visa from 1 January 2017.
Table A: Working holiday makers income tax rates for 2016–17 from 1 January 2017 Taxable income Tax rate Value (a) $0–$37,000
15% on each $1 up to $37,000
32.5% on each $1 over $37,000 to $87,000
37% on each $1 over $87,000 to $180,000
47%* on each $1 over $180,000
* Includes the Temporary Budget Repair Levy of 2%.
If no TFN is provided you must withhold at 47% on total payments made.
Disclaimer: we are not tax experts, and you should always seek advice on your own situation from the ATO website, the Immigration Department website, or your accountant.