Farmers and Labour Contractors – The ATO Beckons

It’s time for farmers and contractors to get up to speed on the new tax and superannuation rates for holiday workers after the closing months of 2016 saw the on again off again backpackers tax issues flare.

backpacker-2Well, the politics is done and the paper work begins but it seems there’s not too much information floating around about the “what and the where.”

The changes came into effect on January 1, with farmers and labour hire contractors have until January 31 to register with the ATO to apply the new rate, otherwise they must withhold the full 32.5 per cent foreign resident tax rate.

Growcom’s Rachel Mackenzie says it is important farmers be aware of their obligations but information remains patchy from the ATO.

“Not just farmers, but labour hire companies and people who own cafes, anyone who employs a working holiday maker has to register.”

“I do think government needs to be a bit more proactive and really push the information out through every possible channel.”