20th January 2022   |   Tax

Business and personal information

If you employ working holidaymakers, regardless of the country they are from, you must continue to withhold 15% tax from their pay – unless you receive a pay as you go variation notice from the ATO.

This follows the recent decision by the High Court in the matter of Addy v Commissioner of Taxation. The decision means an eligible working holidaymaker may be tax assessed the same as an Australian resident if they are both:

  • an Australian resident for tax purposes, and
  • from Chile, Finland, Germany (for 2018 and later income years), Israel (for 2021 and later income years), Japan, Norway, Turkey or the United Kingdom.

If your employee is a working holidaymaker from one of the above countries and an Australian resident for tax purposes, they can lodge a tax return at the end of the income year to receive a tax refund (where eligible).

You don’t need to do anything new as a result of this decision. But if you have further queries please call our friendly staff on 03 9995 7261

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