My partner worked as an independent contractor for an Australian company while on a work-holiday visa (417). The place he worked at is not registered to hire working holidaymakers, however he was technically not their employee as an independent contractor. How much taxes is he expected to pay? 15% for the first 45000 or 32.5% from the beginning? He has an ABN number.
Thank you!
Hi @Steph23,
That's correct, if he wasn't an employee then the business won't need to worry about withholding rates.
As an independent contractor I'm assuming he worked under a sole trader ABN. If so, standard income tax rates for working holiday makers will apply to his total income (Business + Employment + other sources). This means during 2023-2024 he'd be taxed at 15% for the first $45,000, and 32.5% from $45,001 to $120,000. This rate changed slightly to 30% for the 2024-2025 tax year, and you can find more about this on our WHM Tax Rates page.
Hi @Steph23,
That's correct, if he wasn't an employee then the business won't need to worry about withholding rates.
As an independent contractor I'm assuming he worked under a sole trader ABN. If so, standard income tax rates for working holiday makers will apply to his total income (Business + Employment + other sources). This means during 2023-2024 he'd be taxed at 15% for the first $45,000, and 32.5% from $45,001 to $120,000. This rate changed slightly to 30% for the 2024-2025 tax year, and you can find more about this on our WHM Tax Rates page.
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