Book Now Thinking about coming to Australia on a Working Holiday Visa (Subclass 417) or a Work and Holiday Visa (subclass 462)?
Apart from being a fun way to see Australia, Working Holiday Visa holders are an important supplement to the labour market in Australia’s rural areas. This is because Working Holiday makers must work for at least 88 days in a regional area in specific job markets (such as crop picking, animal husbandry, construction work, etc) in order to successfully apply for a second Working Holiday Visa. However, in recent years Working Holiday Maker numbers have dropped significantly for a number of reasons and the crop farmers were suffering greatly from a lack of labour at picking season (Australians by all accounts, don’t like this type of work, even if they can’t find other work).
By way of some good news for Working Holiday makers (and to encourage more people to apply), from January 1 of this year the Government will set the tax rate applying to working holiday makers at 19 per cent on earnings up to $37,000, rather than the 32.5 per cent announced in the 15/16 Budget.
The Government will also reduce the visa application charge for working holiday makers by $50 to $390.
Finally, Working Hoiday visa holders, and Work and Holiday Visa holders can work for the same employer for 12 months, but no more than six months in the one location. So, for example, if working for one employer, who has an business in NSW, you can be there, and then you can go and work for the same employer, who may have another branch of his/her business in Western Australia. T
To protect Working Holiday Visa holders from exploitation by employers, all employers of 417 (Working Holiday) and 462 (Work and Holiday) visa holders must register with the ATO. This will ensure that employers are doing the right things by Working Holiday Makers when they are working in Australia. It will also provide an avenue for the Government to cancel that registration and remove that entitlement for people to employ workers on 417 and 462 visas where an employers does not provide the correct working conditions and pay. This will provide a strong incentive for those employers to continue to do the right thing by their employed Working Holiday Visa holders.
As always there are stings in the tail of the the good news above. One is that the departure tax will increase by $5.00 to $60,00 and if you claim any superannuation you have been paid on your departure – it will be taxed at the eye watering rate of 95%!!!
Want to find out more about Working Holiday Visas and ways to stay after your Working Holiday? Contact us now and let’s talk.
