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Re: PAYG for Working holiday maker change to resident during the financial year

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My question is if one working holiday maker changed their visa to student visa by 01/Oct/ 2018, for the period from 01/07/2018-30/09/2018, should we still withhold their tax at 15% assume they earned less than 37000 for that period.

Also for the period 01/10/2018-30/06/2019, since they are resident for tax purpose, tax free threshold applied, are they entitle to the whole 18,200 tax free threshold or this need to be prorated?

 

 

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Hi @invide,

 

Welcome to our Community!

 

If you're a registered working holiday employer, you're required to withhold 15% tax up to $37,000 for any employees on a working holiday visa.

 

If their residency status changes part way through the year and they notify you of the change by completing a withholding declaration, they'll be entitled to a pro-rated tax-free threshold depending on the number of months they were a resident of Australian (as per @macfanboy's calculation).

 

If you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Under working holiday visa tax must be withheld at 15% up to $37,000 (July-Sep)

 

The amount of money earned in this period is counted towards the tax free threshold which will be apportioned for October 1st 2018 to June 30th 2019 (10 months).

 

$13,464 + (($4,736 x 10)/12) = $17,410

 

So if they earned $5,000, during Jul-Sep, the remaining $12,410 ($17,410 - $5,000) would be tax free and any amount over that will be taxed at 19% up to the next tax rate ($37,000).

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Hi @invide,

 

Welcome to our Community!

 

If you're a registered working holiday employer, you're required to withhold 15% tax up to $37,000 for any employees on a working holiday visa.

 

If their residency status changes part way through the year and they notify you of the change by completing a withholding declaration, they'll be entitled to a pro-rated tax-free threshold depending on the number of months they were a resident of Australian (as per @macfanboy's calculation).

 

If you have further questions, you can phone us on 13 28 66 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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