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
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
› visit border.gov.au/vevo to check your 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.
For financial year 2017 and employ working holiday makers you’ll 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.For more information go to the ATO website
Get help with ATO & PAYG for nannies
Making sure you have met your ATO & PAYG requirements is one of the more annoying and time consuming part of employing a nanny. Domestic Payroll can help.
We are here to help, assisting with the required payments and keeping track of all your nanny’s time off. Get in touch with us now and find out how paying the nanny can become an easy process including managing the ATO obligations.
