Understanding Your Responsibilities as an Employer of Working Holiday Visa Holders

The Importance of Registration with the ATO

Many employers are unaware of their responsibility to register with the Australian Taxation Office (ATO) if they employ working holiday visa (WHV) employees. Failing to register can lead to penalties from the ATO. WHV holders are able to lodge tax returns, making it essential for employers to understand their obligations.

Who Needs to Register?

Employers must register with the ATO if they are employing or plan to employ workers with either a Working Holiday visa 417 (working holiday) or 462 (work and holiday). This registration must occur before the employee receives their first pay. Employers need to register to withhold money at the working holiday makers tax rates.

Superannuation Requirements

Superannuation must also be paid for WHV holders. They can withdraw these funds upon leaving Australia, but it is important to note that this withdrawal is taxed.

Withholding Tax Rates

Once registered, employers must withhold tax according to the ATO's rulings for each fiscal year. For example, during the 2025-2026 financial period, the rates are as follows:

• 0 to $45,000 – 15c for each $1

• $45,001 to $135,000 – $6,750 plus 30c for each $1 over $45,000

• $135,001 to $190,000 – $33,750 plus 37c for each $1 over $135,000

• $190,001 and over – $54,100 plus 45c for each $1 over $190,000

  
  

For accurate information, visit the ATO website or consult your accountant, as the amounts can vary each financial year.

Consequences of Not Registering

Not registering as an employer of working holiday makers means that employers must withhold tax at a much higher rate. Since these rates differ for each financial year, it is crucial to consult the ATO website or an accountant for the correct amounts.

How to Register as an Employer

A business with an ABN and registered for PAYG withholding can register as an employer of working holiday visa holders in several ways:

1. Online: Use the ATO employer registration for working holiday maker form.

2. Phone: Call the ATO directly.

3. Tax Agents: A registered tax agent or BAS agent can complete the form on your behalf.

   
   

Companies without an ABN but registered for PAYG tax withholding also have options for registration. The ATO online form is available, or you can call the ATO business line if you are an authorized business contact. Additionally, there is an application form to download from the ATO – Application to register a PAYG withholding account form.

Viewing Your Registration

Once registered as an employer of working holiday visa holders, you can view your registration on the Australian Business Register.

Cancelling Your Registration

If you need to cancel your registration as an employer of working holiday visa holders, you can do so by phoning the ATO at 132 866.

Conclusion

Understanding your responsibilities as an employer of working holiday visa holders is crucial. Registering with the ATO ensures compliance and helps avoid penalties. It also allows you to manage tax withholding effectively. If you have questions or need assistance, don't hesitate to reach out to the ATO or a qualified professional.