Changes to withholding rules and payroll reporting for 2016-17

Original Published Date: 

17/10/2016 - 01:45pm

Status: 

  • Current

Tax Category: 

  • Payroll
  • Tax preparation
  • Superannuation

Resource Type: 

  • Consultative groups

Description: 

A teleconference was held on Thursday 20 October 2016 to consult with software developers affected by the new legislative measures related to withholding rules and payroll reporting for 2016-17.

From 1 January 2017 working holiday makers will be taxed at 15 per cent on earnings up to $37,000. Ordinary marginal tax rates will apply after that. They will no longer be entitled to claim the tax free threshold.

Employers of working holiday makers will be required to undertake a simple, once-off registration with the Australian Taxation Office to be able to withhold tax at this new rate. Employers who do not register will be required to withhold tax at the 32.5 per cent rate.

In addition, from 1 July 2017 the rate of tax on the Departing Australia Superannuation Payment (DASP) for working holiday makers will be increased to 65 per cent. More information on the new DASP law can be found on ato.gov.au.

Reason for Amendment: 

25 October 2016 – A summary of the changes discussed in the teleconference is now available. Draft specifications will be issued for feedback within 3 weeks.

Resource Attachments

File Size Upload date Add to Cart
Summary of payroll changes 2016-17 196.8 KB 25 Oct 2016 Add

All Versions

   No previous versions available.