With the tourist season approaching, here is some timely advice from the ATO.
Things you need to do to get it right.
If your new employee has ticked the box at question eight on their Tax file number declaration to declare they’re a ‘working holiday maker’ here’s what you need to do:
You will need to register as an employer of working holiday makers. Fill out our Working holiday maker employer registration form online before you make your first payment to them. You will need your:
- entity type
- contact details.
2. Check visa
Confirm your working holiday maker has a valid visa (subclass 417 or 462) by using the Visa Entitlement Verification Online (VEVO) service.
Your employee can do this for you online, or via the myVEVO app, and send you an email verifying their details.
3. Apply tax and super
Once you register, you must withhold 15% from every dollar your working holiday maker earns up to $37,000. The tax rates change for amounts above this.
You also need to pay eligible super contributions as you normally would – they can claim these back when they leave Australia.