Top Facts About A Backpacker Tax That Everyone Should Know
Being a backpacker does not make someone a tourist. This is because a person earns as a foreigner of the country. Hence one will have to pay tax to the country that he or she is working in. Though most backpackers don’t know what the backpacker tax is. This article has the amazing facts that can help a backpacker know more about the backpacker tax. These facts are as explained below.
The first thing that an individual needs to know about the back parker tax is that it was passed in December 2016. This is when the tax rates for the working holidaymakers were passed whereby all the holidaymakers who earn thirty-seven thousand dollars per annum will be taxed at 15% for every dollar. Those working holiday makers that earn more than this will be subjected to normal tax rates.
Another thing about the Backpacker Tax Australia is that the bill on this tax aimed at recognizing working holidaymakers as the generators of labor and tourism in the country. This bill also aimed at making the country a better working destination that anyone can choose to work in. Though an individual needed a subclass 462 and subclass 417 visas for him or her to be allowed to be a working holidaymaker in the country. All backpackers must have one of these visas to be allowed to enter the country.
A backpacker can get their superannuation after his or her visa has expired. The superannuation is just like a pension fund that an employer pays if an individual earns more than four hundred and fifty dollars a month. The employers pay 9.5% of the money that this individual earns. Later when one wants to leave the country, he or she gets his or her money back after the payout has been taxed at a rate of 65%.
All the employers who hire the backpackers must be registered with the country's taxation offices. This registration enables employers to get a tax number for his or her employees. This is the tax number that prevents the taxation of the backpackers at a higher rate. These are the things that every backpacker should know about the backpacker tax. There are also other information that a backpacker more so the new ones should know. This information can be obtained from the best tax consultants that can be found online and it can be of great help. Click here for more details: https://en.wikipedia.org/wiki/Tax.