Working holiday maker visas and employer obligations

Employees on Subclass 417 Working Holiday Visas and Subclass 462 Work and Holiday Visas are often hired by employers seeking to fill a short term labour need. 

As a helpful reminder, employers should consider the following requirements before taking on a working holiday maker. 

Taxation

Employers must register with the ATO to withhold tax at the working holiday maker rate before making the first payment to them. It is important to note that penalties may apply to businesses failing to comply with this requirement. 

If your business has an ABN, you can register online here.

Workers must apply for a tax file number and will be charged at a rate of 15 per cent with no low income threshold for the first $37,000 earned. After $37,000, foreign resident tax rates apply. For workers who do not have a tax file number, they will be taxed at the highest rate of 32.5 per cent up to $90,000 and then at the foreign resident tax rates.