Working Holiday Program - Updates
The Australian Government has announced changes to the Working Holiday program which will come into effect on January 1, 2017.
These changes will benefit people applying for Working holiday or Work and Holiday visas to Australia. It will also be beneficial to people already in Australia on Working holiday visas. These changes aim to improve the supply of working holiday makers and improve its attractiveness, as a visa, for people to come on holiday to Australia.
Age Limit increased to 35 years of age. It is an opportunity for people who previously were not able to apply for a Working Holiday in Australia.
Reduction in Application Fees
$50 decrease in Application fees. The new application fees will be $390 as opposed to $440 now.
Change to Work Rights
Change to Work Rights will be introduced with more flexible arrangements, allowing an employer with premises in different regions to retain employees for up to 12 months, providing the second six months is in a different location.
The tax rate on working holiday makers with income less than $37,000 will be 19%. This is reduced from the current rate of 32.5%. The usual marginal tax rate will apply for income over $37,000.
Australian Taxation Office (ATO) registration as an employer of working holiday makers will be required for the lower rate to be applicable. The register of employers will be public and is intended to tighten the integrity of the tax system.
On the other hand the tax on working holiday makers' superannuation when they leave Australia will be increased to 95% from 1 July 2017. This effectively means working holiday makers will forfeit their superannuation on departing Australia.