CALL US: (07) 3367 0999 | EMAIL US:

Changes to tax rates for working holiday makers

Tax rates for working holiday makers who are in Australia on a 417 or 462 visa have changed.

From 1 January 2017, employers who employ a working holiday maker in Australia on a 417 or 462 visa:
– Must withhold 15 per cent from every dollar earned up to $37,000 with foreign resident tax rates applying from $37,001.
– Must register with the Australian Tax Office by 31 January 2017 to withhold at the working holiday maker tax rate.
– If you do not register, you will need to withhold at the foreign resident tax rate of 32.5 per cent.
– Penalties may apply if you employ holiday makers but do not register.

For employers who already employ working holiday makers, you will need to issue two payment summaries (with different rates) this year – one for the period to 31 December 2016 and a second for any period from 1 January 2017.

Business
advice

taxation
planning

compliance
services

News

Proactive consolidation with ILBAs

November 13, 2019

Inactive low-balance accounts (ILBAs) are a new category account that needs to be reported and paid to the ATO. This was introduced in the Treasury Law Amendment (Protect Your Superannuation Package) Bill 2019 that came into effect on 1 July 2019 after first being announced in the 2018-19 Federal Budget.

ILBAs are designed to protect accounts from fee erosion. Where possible, the ATO will proactively consolidate super on behalf of an individual.

A superannuation account is considered an ILBA if the following criteria are met:

Funds are required to identify ILBAs on 30 June and 31 December each year, then report and pay them to the ATO by the statement date.

Individuals that have an account that they do not want to be transferred to the ATO as an ILBA, can consolidate super accounts using ATO online services through myGov, contact their super fund for more information or authorise their super fund to provide a written declaration to the ATO.