News update for working holiday makers! As of 1 January 2017, key changes will come into effect. Here's a summary:
1. Age Limit Increased Currently, applicants must be under 31 to apply. This will increase to 35 as of 1 January 2017.
2. Taxes Changed For earnings up to $37,000, tax rates will reduce from 32.5% to 19.0%. Regular marginal tax rates will apply to earnings after $37,000. However, the 9% superannuation paid will be taxed at 95% instead of 35% upon leaving the country.
3. Application Fee Reduced Will reduce from $340 to $390.
4. Flexible Employer Arrangements Currently, working holiday makers cannot work for more than 6 months for the same employer. From 1 January 2017, working holiday makers will be able to work for the same employer up to 12 months, as long as the second 6-month block is in a different region.
Overall, Working Holiday Makers should largely welcome these changes as it provides a lot more flexibility to the current program.
If you have any questions, message us at any time or book in your FREE 1-to-1 consultation today!