If you currently employ a working holiday maker on a 417 or 462 visa:
You must register with ATO by 31 January 2017 so you can withhold the correct amount tax.
From 1 January 2017, you should withhold 15% from every dollar earned up to $37,000 with foreign resident tax rates applying from $37,001.
If you employed a working holiday maker before and after 1 January 2017, you need to issue two payment summaries for this financial year
- one for income earned up to 31 December 2016 (using code S)
- one for income earned from 1 January 2017 (using code H).
If you don’t register, penalties may apply and you’ll need to withhold at the foreign resident tax rate of 32.5%