Employers of Working Holiday Makers
If you are employing backpackers or working holiday makers, you should confirm their visa type.
The Department of Home Affairs provides a service called Visa Entitlement Verification Online service https://www.homeaffairs.gov.au/busi/visas-and-migration/visa-entitlement-verification-online-(vevo)
If any of your employees hold a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462), you would then need to register with the Australian Taxation Office to withhold tax at the working holiday maker rate before making your first payment to them.
Working holiday makers are taxed at 15% from the first dollar earned, regardless of their residency status, up to $37,000 and Foreign resident withholding rates apply to income earned over $37,000.
They are entitled to superannuation if they are eligible.
At the end of financial year, you would also need to indicate that the employee is a working holiday maker on their payment summary. On the gross payment type box, indicate ‘H’ to show that the employee is a working holiday maker.
Please note that ATO imposes penalties if you are an employer of working holiday makers and are not registered with the ATO.