Backpacker Tax Changes 1 Jan 2017

From 1 January 2017, working holiday and work and holiday visa holders, or backpackers, will pay 15 percent income tax from the first dollar they earn in Australia.

The 15 percent Backpacker Tax rate has come into effect after a long and drawn-out political debate.

Under tax law, the tax-free threshold for non-residents of Australia previously applied until 31 December 2016. However, if you are a backpacker and earned income in the first half of the financial year — before 1 January 2017 — you will have to pay the 32.5 per cent rate on that income.


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