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.
After COVID 19’s impact on the world, an influx of employees who had lost their jobs fell into the job market. Many of these came from companies that couldn’t afford to continue their employment. As a result, many individuals had to seek alternative employment, or draw from their super. Some individuals took on multiple jobs to pay bills, and others drew from the super that they had accumulated in the government’s early release scheme specifically for coronavirus related income loss.
Super is held by superannuation funds, and accumulates as a result of how much super an employer pays to the employees’ funds. Many Australians may find that they actually possess multiple super accounts as a result of having “lost” their super accounts during changeovers. It can also happen as a result of changing names, moving addresses, living overseas or changing jobs.
Australians can use the ATO’s online tools to:
View details of all of their super accounts, including lost or unclaimed amounts
Consolidate eligible multiple accounts (including any super held by the ATO)
Withdraw your super held by the ATO when certain conditions are met.
As superannuation funds often have fees associated with their upkeep, as well as insurances that may be tied into it (such as life, total and permanent disability and income protection), it’s important to consult with providers before accounts are consolidated.
