From January 2017, Australian Government Working Holiday Visas (subclass 417), which enables young travellers to work through their holiday, has changed some of their rules and guidelines.
This is mostly all good news; reduced cost of visa, flexible working arrangements and potential age extension however it is important to be informed and compliant with the new 417 visa tax changes.
- The cost of the visa will go from $440 to $390, saving you $50.00
- Conditions around work practices have also changes – you may have the opportunity to work for up to 12 months, providing you aren’t at the same location for more than 6 months
- Backpacker taxes are proposed to change. Last month the government announced it would amend the 32.5% backpacker tax announced earlier this year. Their new bill asks for backpackers to be taxed at a 19% rate, from the first dollar. Here is an example:
a non-resident individual earning $40,000 in the current tax year would be liable for $4,547 in personal income tax, leaving an after-tax income of $35,453. Under the proposed arrangements, this individual would be liable for $13,000 in personal income tax, leaving an after-tax income of $27,000.
- The government will also start taxing backpackers' superannuation at a rate of 95% when they leave the country.
- The age range for the 417 visa may be extended to up to 35 years old but for the time being, the age remains 18-30 (up until the day before your 31st birthday)
Contact our International Office on +61 3 9269 1200 or read more on the Department of Immigration and Border Protection here.
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