From 1 January 2017, tax rates changed for
working holiday makers who are in Australia
on a 417 or 462 visa (these rates are known as
‘working holiday maker tax rates’).
If a business employs a working holiday maker
in Australia on a 417 or 462 visa, from 1 January
2017, they should withhold 15% from every dollar
earned up to $37,000, with foreign resident tax
rates applying from $37,001.
Businesses must register with the ATO by 31
January 2017 to withhold at the working holiday
maker tax rate.
If they don’t register, they will need to withhold at
the foreign resident tax rate of 32.5% (and penalties
may apply to businesses employing holiday makers
that don’t register).
Editor: Therefore, if this affects you and you haven’t
registered by the time you read this, please contact
Also note that businesses already employing
working holiday makers will need to issue two
payment summaries (with different rates) this year
– one for the period to 31 December 2016, and a
second for any period from 1 January 2017.