Visa 417 & 462 – Are you compliant?

On 1 January 2017 tax rates changed for working holiday visa holders.  From this date, if you employ a working holiday maker on a 417 or 462 visa you need to apply one of the following:

  1. If you are a registered employer, you need to withhold 15 % tax from the first dollar earned up to $37,000 in an income year. For income from $37,001 the foreign tax rate of 32.5% applies.
  2. If you are not registered, then you must use the foreign resident withholding rates of 32.5% from the first dollar earned.
Earnings in
an income year

Tax Rate
Registered

Tax Rate
Not Registered

$0 – $37,000 15% 32.5%
$37,001+ 32.5% 32.5%

Remember

If you employ someone under a Visa 417 or 462 who started with you prior to 1 January 2017, you will need to issue two payment summaries for this financial year.  One for the period up to 31 December 2016 and then one for the period from 1 January 2017.

Useful Links
Register as an employer
Check visa entitlements