Coming soon in 2017, Working Holiday visa (for both Subclass 417 and 462) applicants/ backpakers will be taxed at a lower rate. The changes are seen to increase and further promote the Australian tourism sector.
New changes for Working Holiday Visa: January 2017
Employers are required to register with ATO for purposes of having a Subclass 417 workers employed with them in order for the visa applicant to receive the reduced tax rate of 19%. This will be a employer public register for the program for visa holders to be able to check and manage the details of employers. If employer is not registered, backpackers will otherwise be taxed at 32.5 cents.
- Extended age criteria from 31 to 35 years of age eligibility
- 417 and 462 visa applications to be reduced to $390 (less $50)
- Both 416 and 462- The Australian government will withhold 95% of departing backpackers superannuation and increase the passenger movement charge
Furthermore, the Australian government has announced it will be increasing the passenger movement charge by $5 to fund particular initiatives whilst supporting the tourism industry.
Travels in Australia will not be subject to additional surcharges such as credit card surcharges in order to improve visitor experience.
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