Important Tax Changes for Working Holiday Makers

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Our friends at have informed us of important changes to tax laws regarding Working Holiday Makers.

In conjunction with the changes being implemented to the visa, all tax law changes will be set in place form 1st January 2016.

The main changes to be aware of are;

  • New laws will be in place from Jan 1st
  • 15% tax rate for backpackers (for income under $37,00)
  • this is only for income earned from 01.01.2017
  • New tax rate of 65% on Super from 01.07.2017
URGENT update for guests who arrived between 1st July 2016 and 31st December 2016.

There have been recent discussions with the Australian Tax Office (ATO)  and as per their latest updates our friends at can still assess applications based on the old residency rules for those who have arrived between 1st July 2016 – 31st December 2016. The old rules only apply for jobs completed during the same time frame. Anybody that has entered after January it doesn’t make any difference as the rules are set in stone for this (15% tax). As always the ATO has the final ruling on decisions, but this new information means that, provided a you have been in Australia 6 months, can now lodge your application as residents for tax purposes as opposed to non – residents.

Please note if you do have any specific questions you can email [email protected] for further information. This information is correct at the time it was posted. The ATO is subjected to change rules as when and if they need to. For the most up-to-date information Job Search advises you to contact or the ATO.