DO YOU WISH TO KNOW THE CHANGES GOVENRMENT HAS MADE FOR BACKPAKERS? THEN LET US TELL YOU…
Australian government has made number of changes for you. Some may benefit you and some not. But let’s see the changes and then decide –
Eligible age limit increased to 35 (effective date: “indefinite”);
Visa application fee reduced by A$50 (effective from 1 July 2017);
If an employer undertakes operations in different premises of different regions, the employer can retain a backpacker for a year only if the backpacker is retained to work in a different place for the second 6 months;
If any employer employs backpacker before and after January 1, 2017, two payment summaries need to be issued for the fiscal year of 2017:
o one for income earned up to December 31, 2016;
o one for income earned from January 1, 2017 (using gross payments type);
All businesses employing (or planning to employ) backpackers, must register with the Australian Tax Office (ATO) by January 31, 2017. Backpackers are also required to register with ATO to withhold the correct amount of tax;
Backpackers should withhold 15% from every dollar earned up to $37,000 (foreign resident withholding rates apply from $37,001);
If not registered with the ATO, backpackers need to withhold 32.5% (foreign resident tax rate) from the first dollar earned.
Still having trouble? Then let us help you to understand better and as always feel free to contact us if you have questions.