Does your business hire backpackers?

backpackers, synergy accountants, toowoomba

June 8, 2017

Following the government changes brought down in January this year, it’s important to ensure the following for any backpackers or working holiday makers hired before 1 January 2017.

You’ll need to issue two payment summaries for any working holiday maker you employed both before and after 1 January:

If you are considering hiring working holiday makers, there are three things you’ll need to do:

  1. Register with the ATO so you can withhold at the 15% tax rate – you only need to register once, not for every worker you employ.
  2. Check they have a visa that allows them to work in Australia.
  3. Withhold 15% from every dollar earned up to $37,000 – foreign resident tax rates apply from $37,001.

If you don’t register, not only will you need to withhold at the foreign resident tax rate of 32.5% from the first dollar your working holiday maker earns, but you might also be penalised.

Read more here, and as always if you have concerns please contact your accountant.