Many of you may be familiar with the Working Holiday Maker Program. The program is popular because it allows visa holders to travel around Australia and obtain short-term work experience with Australian employers, for a maximum duration of up to 24 months.
While there were previous movements to change the tax residency status of Working Holiday visa holders resulting in a much higher tax rate on every dollar earnt; the Australian Government has since recognised the importance of the program to Australia’s tourism industry and labour markets; particularly within our hospitality, agriculture, tourism, and horticultural areas.
As such, from the 1st January 2017, only the first $37,000 of income earnt as a Working Holiday Maker, will be taxed at 15%, with the balance taxed at ordinary rates. The good news is that this equates to a significant tax savings for the visa holder, leaving them with more money in their pockets for their Australian holiday.
Written by: Yi Main Cheong | Business Development Manager for the ISA Group | MARN: 1385224 | firstname.lastname@example.org