APL Accounting News January 2017
Happy New Year!
We have recently received the following information from the ATO regarding a change in withholding tax rates for employees who hold 417 and 462 visas.
Not everyone will be affected, however for those of you employing staff on working holidays there are instructions below together with a few links that will help you get things sorted.
Employees holding 417 and 462 visas
From 1 January 2017 tax rates are changing for working holiday makers who hold 417 and 462 visas. These rates are known as working holiday maker tax rates.
What you need to do
If you employ a working holiday maker who is in Australia on a 417 or 462 visa, you:
- must register with the ATO to withhold at the working holiday maker tax rate
- can visit border.gov.au/vevo to check your worker has a 417 or 462 using the Via Entitlement Verification Online service
- must withhold tax at 15% on income up to $37,000 and apply foreign resident tax rates on income over $37,000.
What happens next
The working holiday tax rates only apply to income earned from 1 January 2017.
If you currently employ working holiday makers you’ll need to issue two payment summaries this year:
- one for the period to 31 December 2016
- a second for any period to 30 June 2017
For more information: https://www.ato.gov.au/Business/Your-workers/Employers-of-working-holiday-makers/
If you use Xero, the instructions below will help get your payroll to reflect the changes.
What’s news at APL?
All staff (both 2 and 4 legged) had an enjoyable break over the holiday period and are thrilled to be back for another exciting year.
We managed to pass our last quarterly theme of “Smarter Not Harder”, by cutting down our wasted time and finding ways to do things more efficiently. We will be rewarded with an afternoon at the local beach very soon.
Our new quarterly theme is “Remote & Travel” and our office is already covered in travel items, outback posters, airline logos, and traffic signs. Our goal is to be able to all work remotely away from the office if we need to be away from the office for an extended period of time or even work offsite permanently. Nicole will be first to try this out as she will be permanently relocating to Bundaberg at the end of the month but will continue working for APL Accountants remotely.
We’re secretly hoping someone buys a remote control car for us to chase, but so far we just have a bunch of posters to tear up.
We hope everyone has a great month.
Here’s to a great January.
Zack & Strudel
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the informations applicability to their particular circumstances. In particular, please note that ‘Zack’ & ‘Strudel’ are dogs and do not have opposable thumbs so have to type with their noses.