Some clarity at last on the Backpacker Tax
15/12/2016
As we come into peak backpacker season the government has finally passed legislation on new income tax rates that come into effect on the 1st of Jan 2017.
From the first dollar earned on Jan 1st 2017 the new tax rate to withhold from employees on a 417 or 462 Working Holiday visa is 15%Until that time the amount withheld is 32.5%
For Backpackers claiming their Superannuation before 1st July 2017 they can expect to lose 38% as is current.
If they leave Australia and claim it after that date they will be sacrificing 65% of withheld Superannuation, even if they earned it prior to July 1 2017.
The ATO has made a new online employer registration form available on its website, and says a new tax table will be made available before the end of the year to help employers withhold the correct amount of tax.
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.
For the full article please click through to the ABC website
