Do you employ guys and gals on working VISA's? Then this one's for you...
From 1 January 2017 all workers on a Work and Holiday VISA subclass 462 and 417 will be affected.
The new income tax rate for these workers is 15% for taxable income up to $37,000 in a year. From $37,001 foreign resident tax rates apply. Prior to this new law, workers could elect to be assessed as an Australian Resident for tax purposes and claim the tax-free threshold.
What does these mean for YOU as an employer?
1. You will need to register with the ATO to withhold this 15% tax rate by 31st January 2017. If you don’t register you will be require to withhold 32.5% and may be subject to ATO penalties.
2. You will need to issue 2 payment summaries for these workers, one to 31 December 2016 and one from 1 Jan 2017 to 30 June 2017.
Need help? Let us know and we can get you registered and assist with your payment summaries!