Do you employ working holiday makers in your business?
From 1 January 2017, the ATO has enacted changes to apply a 15% flat rate of tax on the first $37,000 of income earned by working holiday makers. The balance of the income will be taxed at the ordinary rates applied to resident tax payers.
The industries that will be the most effected by these changes are the hospitality, tourism and agricultural industries. These industries have lobbied hard to bring the initial 2016 Australian Government budget proposal of 32.5% down to 15%.
The concern the industries had was that working holiday makers would look to other countries with lower rates of w...