Businesses reminded to register for backpacker tax rate

February 27, 2017


Businesses reminded to register for backpacker tax rate

Federal Member for Wide Bay Llew O’Brien, has reminded employers who wish to claim the 15% tax “backpacker” rate for their working holiday staff that they must register with the Australian Taxation Office to be eligible. 

As part of the Federal Government’s reforms to meet seasonal labour supply demands and keep Australia as a top destination to work, stay and play, a 15% tax rate has been introduced for all working holiday makers earning up to $37,000.

Employers who register will be able to withhold tax at 15% for wages paid from January 1, 2017. Unregistered employers will need to withhold tax at 32.5%.

“Registration is quick and easy, and each employer will only need to register once,” Mr O’Brien said.

“The ATO is assisting employers as they start to use the new rate, so if you haven’t registered, please do so now.”

The register will provide valuable data on who employs working holiday makers, what sectors they are engaged in and where the employers are located.

For more information visit and search for “working holiday makers”.

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