The ATO has passed legislation that, from 1st July 2024, Working Holiday Makers are entitled to the tax rates in the table below. Please note that the business is also required to register once with the ATO as an employer of working holiday makers before they are entitled to this new tax rate.
|
Taxable income |
Tax on this income |
|---|---|
|
0 – $45,000 |
15c for each $1 |
|
$45,001 – $135,000 |
$6,750 plus 30c for each $1 over $45,000 |
|
$135,001 – $190,000 |
$33,750 plus 37c for each $1 over $135,000 |
|
$190,001 and over |
$54,100 plus 45c for each $1 over $190,000 |
If no tax file number (TFN) is provided, you must withhold at 45% on total payments made.
N.B. The tax table for working holiday makers does not apply to individuals under the Seasonal Worker Programme and Pacific Labour Scheme, or Pacific Australia Labour Mobility scheme.
Configuring Employee Tax Details
To obtain the new tax rates, you will need to go into each Employee File -> Tax Declaration page and tick the below box. N.B. The employee's visa country will also need to be selected.
Please note that the ATO does not require the submission of a new tax file declaration for this change.
If you are not sure whether you need to tick the box or not, hover over the blue question mark for further information:
New Tax Rates
Once the declaration is saved, the employee will receive the new PAYG rates for any pay runs with a date paid on-or-after 1st July 2024. For pay runs with a date paid before 1/1/2022, Working Holiday Makers are entitled to a 15% tax rate for earnings up to $37,000 per year. This means that you can set up the employees prior to 1/1/2022 and the appropriate tax rules will be applied based on the date paid.
Further Reading
To find out more about these changes, please refer to the following ATO article: https://www.ato.gov.au/tax-rates-and-codes/schedule-15-tax-table-for-working-holiday-makers