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Community > AU Payroll >

AU Payroll: Backpacker Tax - Working Holiday Maker Tax

Started by Mihi Watson -   in AU Payroll

No one seems to be able to tell me what's happening with updates for PAYG tax for Backpackers.

The new tax goes live 1 January 2017 and we shut down from the 23rd December so we've only got a week to make sure all employers know to register as Working Holiday Maker employers (search QC 50743 if you want the ATO info).

Plus they will need to update the software as it's a completely new tax group. Xero - when are we going to be able to advise employers what they will need to do. I'm guessing they will need to update the employee cards for any backpackers.

FYI the ATO website says it's the employers responsibility to determine if an employee is a backpacker. I'm guessing we will be seeing a new TFN declaration in the future.
Official Xero Reply
Hey everyone wanted to let you know here that our updates for Working Holiday Makers (WHM) have recently been released.

So for WHMs that have already been added into Payroll, and were set up using the steps we provided earlier, you'll need to add them as a new Employee. Ensure you uncheck 'Has approved withholding variation' and change residency status from foreign resident to Working Holiday Maker.

For any new WHMs being set up, select the residency status of Working Holiday Maker. Once set up as required, Xero automatically calculates the tax amounts for these employees.

Please take a look at our Help Centre for more details.

We're waiting on a few more details from the ATO re: filing tax declarations and printing payment summaries - so will update you all when those specs have been released.

Brittany H (Community Manager)