The recent changes in the Australian backpacker tax have caused a lot of confusion, not only amongst working holiday backpackers but also amongst many employers and even some accountants and tax agents.
Below, we’ve listed 6 simple facts that may clear up your questions!
From January 1, the tax rate for working holidaymakers in Australia has been made 15% on earnings up to $37,000.
For anything above $37,000, ordinary marginal rates will apply, which means all earnings from $37,001- $80,000 will be taxed at the standard 32.5% rate.
The fees for working holiday visa applications will also be reduced by $50 to $390.
The current age of eligibility (18 to 30) will remain in place for the time being.
To promote tax integrity as well as to collect more data, the government will require employers of backpackers to register with the tax office.
The names of registered employers will be public, so available to those on working holidays and to other employers. Scott Morrison. MP, said the new registration system would give better data on who is employing backpackers, and “also help us to address what is the other side of the equation – and that is why are Australians not taking up jobs in the first place? What are the things that need to be done to ensure that Australians will take up these jobs?”.
As a working holiday maker, any departing Australia super payment made on or after 1 July 2017 is taxed at 65%.
With an authorized tax agent like com filing your OZ tax return can be an easy and hassle-free process
Find out more information about Taxback.com and their services at www.taxback.com.
This information was up-to-date at the time it was posted. Job Search advises to contact Taxback.com, the ATO, or the Australian Immigration website for the latest information.