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Supercharge Your Superannuation & Maximise Your Retirement Savings

Welcome back everyone. In the sixth and final part of my blog series, I want to discuss something that affects all of our financial journeys: Superannuation. Perhaps you’re concerned about your retirement savings? Or maybe uncertain about how to make the most .....

Business - 1 min read

As a business owner, you may find yourself hiring a variety of staff, some of whom may be working holiday makers (aka backpackers).

Working holiday makers have tax obligations and if eligible, then superannuation entitlements. From 1 January 2017, if you are employing working holiday makers, a new withholding rate of 15% applies to the first $37,000 paid to the individual and the remainder is taxed at ordinary rates.

What you need to do

If you are employing working holiday makers in Australia on a visa subclass 417 or 462, you:
  • must register with the ATO to withhold at the working holiday maker tax rate prior to the first payment to a working holiday maker. You can register here.

You must register prior to 31 January 2017 to avoid any penalties.

Feel free to contact us if you are unsure about registration or the implications of hiring working holiday makers to your business.

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