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13
Jun
  • Posted By : Administrative
  • Category: Income
  • Comments: 0

FEW TIPS ON HOW CAN THE BACKPACKER TAX BE WITHHELD BY EMPLOYER

Are you working in Australia as a backpacker? Then we have good news for you. According to Australian government new law, you can now pay less tax as the tax rate has dropped down from 32.5% to 15%, which has been effective from January 1, 2017. And to received that 15% tax rate, your earnings need to be a maximum of $37,000. What if you are earning more than the stated threshold? Then undoubtedly your tax rate will go back to 32.5%, and will result in you paying larger amount of tax.
Same as you, your employer needs to pay tax. He also needs to pay a certain amount of super for you if you meet the eligibility criteria. But here is the good part! When you are leaving Australia, you can claim the super as Departing Australia Superannuation Payment (DASP). Nonetheless, the tax on any DASP made to working holiday makers on or after 1 July 2017 is 65%.


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