Employing working holiday makers? You must Register!!!

From 1 January 2017
 
All 417 and 462 visa holders working in Australia for employers that register with the ATO will pay 15% tax on income earned from zero up to $37,000, then the same tax rates as residents above $37,000.
 
It is important to note that employers who do not register with the ATO will be required to withhold tax at the normal non-resident rate of 32.5% from the first dollar earned for all 417 and 462 visa holders.

The ATO has made the new online employer registration form available here.
 
Employers’ obligations for paying superannuation to backpackers remains the same as for Australian employees, requiring the equivalent of 9.5% of the employee’s wage be paid as a super contribution. The new rules in relation to superannuation do not come into place until 1 July 2017. The new rules will have no impact on the amount of super you pay as a grower.
 
The ATO website provides guidelines on the new rules applying from 1 January 2017.

• For backpackers
• For employers