Do you employ working holiday makers?
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:
- an Australian resident for tax purposes; and
- from Chile, Finland, Germany (for 2018 and later income years), Israel (for 2021 and later income years), Japan, Norway, Turkey or United Kingdom.
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).