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If you employ working holiday makers, regardless of the country they are from, you must continue to withhold 15 per cent tax from their pay – unless you receive a pay as you go variation notice from the ATO.
This follows the recent decision by the High Court in the matter of Addy v Commissioner of Taxation. The decision means an eligible working holiday maker may be tax assessed the same as an Australian resident, if they are both:
If your employee is a working holiday maker from one of the above countries and an Australian resident for tax purposes, they can lodge a tax return at the end of the income year to receive a tax refund (where eligible).