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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.

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What to consider when consolidating your super

August 27, 2020

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds’ policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready: