Any employer can hire a working holiday maker, especially when they need labour for a short period. Working holiday makers will hold a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462).
If your new employee has ticked the box on their TFN declaration that they’re a working holiday maker there are three important steps you need to take:
Step 1: Register as an employer of working holiday makers
Make sure you fill out the Working holiday maker employer registration form online before making your first payment to them. You will need your:
- entity type
- contact details
Step 2: Check their visa is valid
The best way to confirm their visa is through the Visa Entitlement Verification Online (VEVO) service. Your employee can do this for you online, or via the myVEVO app, and send you an email verifying their details.
Step 3: Apply correct amounts for tax and super
You must withhold 15% from every dollar your working holiday maker earns up to $37,000. For amounts above this use the tax table for working holiday makers. Working holiday makers are not eligible for the tax-free threshold. If they do not provide you with their TFN then you will need to withhold tax at the top rate of 45%.
You also need to pay eligible super contributions as you normally would – they can claim these back when they leave Australia.