Working Holiday Visas – Still a Holiday :)
January 18, 2017
Changes to the Working Holiday Visa: Are You Affected?
As of 1 January 2017, there have been a few changes you’ll need to know about for both the Working Holiday visa (subclass 417) and the Work and Holiday visa (subclass 462). The changes will benefit both people applying for the visas, and people already on a visa.
So, what are the changes?
Increase in age limit
At the moment, you must be under 31 to qualify for a visa. From the New Year, you’ll be able to apply if you’re under 35.
Change to work rights
Under the current regime, visa holders cannot work for the same employer for more than six months.
However, the changes implement a degree of flexibility. Employers with multiple locations will be able to keep an employee for up to 12 months, so long as the second six month block is worked at a different location.
Reduced application fees
You’ll save $50 under the changes, with the application fee reducing from $440 to $390.
Currently, people on a Working Holiday visa are taxed at a rate of 32.5% if they earn less than $32,000. This tax rate will drop to 19%.
If visa holders earn more than $32,000, the usual tax rate will apply.
The employer must register with the ATO for the lower rate to be effective.
But on another note, things aren’t looking good for superannuation. The tax rate will be increased to 95% from 1 July 2017, meaning that working holiday makers essentially forfeit their superannuation once they leave the country.
If you’re unsure about how the new tax system, or any of the incoming changes will affect you, it’s best to get in touch. Working holidays should be exactly that: a little bit of work, balanced with the relaxation and fun of a trip away. Let us take the stress out of it for you.