What do the tax changes mean for you?

What do the Australian backpacker changes mean for you?

The recent changes in the Australian backpacker tax have caused a lot of confusion, not only amongst working holiday backpackers but also amongst many employers and even some accountants and tax agents. When it comes to the tax rates, there are a few quick things to note.

From January 1, the tax rate for working holidaymakers in Australia has been made 15% on earnings up to $37,000.

For anything above $37,000, ordinary marginal rates will apply, which means all earnings from $37,001- $80,000 will be taxed at the standard 32.5% rate.

If you worked for the same employer before and after 1 January 2017, your employer will give you two payment summaries. Income earned before 1 January 2017 is taxed at ordinary rates. Income earned from 1 January 2017 is taxed at 15%. When you lodge your tax return it is important that your income is included correctly to ensure that you aren't over-taxed.

As a working holiday maker, any departing Australia super payment made on or after 1 July 2017 is taxed at 65%. The government’s rationale behind the withholding tax hike is to partially offset the cost of the reduction from 32.5% to 15%, as well as acting as an incentive to keep the superannuation money in Australian superfunds and the economy.

With an authorized tax agent like Taxback.com filing your OZ tax return can be an easy and hassle-free process

To apply for your refund, register online and the team of tax experts will provide you with a completely free tax refund estimate. If you are happy with it, they will complete your application. The whole process is completely stress-free and you don’t need to deal with the tax authorities and know complicated tax laws. You simply wait until you receive the maximum legal refund straight to your bank account.

 

Find out more information about Taxback.com and their services at www.taxback.com.