The Australia Working Holiday Visa’s Important Amendments

The Australia Working Holiday Visa’s Important Amendments https://www.migrationexpert.com.au/visa/australian_immigration_news/2016/Oct/839/839/important_amendments_to_the_working_holiday_visa

The Australia Working Holiday Visa’s Important Amendments The Turnbull government announced on a media statement on Tuesday, the 27^th of September, of the pending changes which will be done to the Working Holiday Visa, a visa that is well known among foreigners.

Individuals that have a Working Holiday Visa are recognised by the Australian Government to be providing substantial contributions to the tourism industry of the country, which is reported to be producing at least $43.4 billion a year.

A number of industries such as agriculture, horticulture, hospitality, and tourism, are being provided with a source of labour through these Workind Holiday Visa holders.

The Australian Government felt that, along with the opinion of the stakeholders, the Working Holiday Visa holders should contribute through a fair tax on their earnings.

The Turnbull Government gave its word that it will become more committed to assessing the tax arrangements for the Working Holiday Visa holders by the end of this year.

The following changes have been approved by the Government:

The tax rate which is going to be applied to the holders of the Working Holiday Visa is going to be 19 per cent of their earnings up to $37,000. It was originally set to 32.5 per cent back when it was announced in the 2015 to 2016 budget. This is going to commence on January of next year, the application of ordinary marginal tax rates are going to be made after that.

The application charges for those who would like to apply for the Working Holiday Visa are going to be reduced to $390 from its original $440 in the hopes that those who will be granted the visa would have more money to spend while they are in the country.

The applications for the Working Holiday Visa has been reported to have reduced in number since the period of 2012 to 2013. Two of the main reasons why this happened was the fluctuations in the exchange rate and the modified economic conditions in other countries.

It was also announced by the Government that more flexible arrangements are going to be made that the Working Holiday Visa holders can benefit from.

Changes to the visa are going to allow an employer with branches or centres located in different regions in Australis to hire a Working Holiday Visa holder for up to 12 months, allowing 6 months in each region.

To operate a $10 million global advertising campaign aimed at the younger generation, the Australian Government has teamed up with Tourism Australia to attract potential applicants of the Working Holiday Visa to the country.

Employers are going to be required to take on a one time registration with the Australian Taxation Office (ATO) to retain the Working Holiday Visa scheme’s integrity and to keep the successful applicants from being exploited. Employers who will not be able to register with the ATO will not have a choice but to withhold tax at 32.5 per cent, which is why it is very important to register.

It is in the hopes of the Government, through this registration process, that more reliable and valuable data will be gathered about Working Holiday visa holders.

The visa holders will now have the option to view the list of registered employers as a document, and they may do that by logging on to the ABN Lookup website.

With all these changes set up, the Australian Government is not only hoping that through the Working Holiay Visa, Australia will become an attractive destination for backpackers once more, but also ensure that the Working Holiday Visa holders pay a fair tax on their earnings.

To make sure that fairness is facilitated on all the given amendments, the government of Australia is being strict with their budget.

The tax on the Workind Holiday Visa holders’ superannuation payments are going to increase to 95 per cent when they leave the country. Why? So that the increase can align with superannuation’s concept, as the superannuation fund was made to assist Australians on their retirement, and not to serve as an additional income support for the visa holders for when they finally leave Australia.

And with that, the Passenger Movement Charge is also going to have a one-time increase of $5.00 starting the 1^st of July next year.

The government of Australia is looking forward to introducing these new amendments so the changes can be enforced, providing both the Working Holiday Visa holders and their employers services they need with more confidence.