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Straight TalkVideo

Pendragon’s Straight Talk: Episode One

By January 30, 2017No Comments


 
TRANSCRIPT:
 
JOHN GLOVER: Welcome to ‘Pendragon’s Straight Talk’. Today’s question is what does the backpacker tax mean for working holiday 417 462 visa holders and their employers?
 
First thing we have to look at is the individuals. The individuals themselves will have their tax changed. They will be taxed at a flat tax rate of 15% from $0 to $37,000.
 
The employers need to make sure they register with the ATO, they need to go online and register with the ATO, that they are running 417 and 462 visa holders and if you do no register there will be penalties for that and also you will have to tax the individuals at 32.5% flat tax from zero dollars, so I don’t think the individual will be too happy and the ATO will also fine you for that.
 
This all comes into play from the first of January this year so it’s in plat and employers have until the end of the month to organise registering that they are running working holiday visas
The other alternative could be that the individual and the company have a chat and if they skills are suitable they look to see if they can put them on a 457, so they move them into a completely different environment
 
So, tax has changed for working holiday visa people and the employers must register with the government and must tax them accordingly at the flat 15%, which by the way isn’t in MYOB or any of the accounting packages you have to go in there and put it in yourself.
 
That’s all for today, thanks for listening, see you next time.

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