TAX ARRANGEMENTS FOR WORKING HOLIDAY MAKERS

TAX ARRANGEMENTS FOR WORKING HOLIDAY MAKERS

TAX ARRANGEMENTS FOR WORKING HOLIDAY MAKERS

There has been a lot of media speculation as to how Working Holiday makers are taxed in Australia.

For clarification, the Australian Taxation Office (ATO) has released an article specifying the tax arrangements in place for those individuals on Working Holiday Visas.

Working holiday makers are taxed solely on their Australian income and commence paying tax upon their first dollar.

At present, the tax is 32.5c in the dollar.

The reasoning behind this tax rate is that Working Holiday makers are described as ‘transient’. Meaning, they predominantly move around and do not establish residency in Australia.

Without residency, entitlements such as the tax-free threshold of $18,200.00 per annum are not permissible to working holiday makers.

Understandably, these benefits are provided to residents as they will make long term contributions to the Australian economy, whilst working holiday makers only have the opportunity to contribute for 12-24 months’ maximum.

Please refer to the ATO website if you require further information regarding the appropriate tax rate for working holiday makers.

Ready to get started? Contact First Class Migration today to begin your visa application process with the support of experts who truly care about your future in Australia.