Seasonal Worker Programme tax rates

[LifeLongLearner]

Seasonal Workers are subject to a flat tax rate of 15% regardless of earnings (confirmed with ATO). The 15% rate is Working Holiday Maker but after $37,000, the tax rate jumps to 32.5%.

The current bunch of seasonal workers will earn more thatn $37k so how do I keep the rate at 15%?

The ATO advised there should be a tax table for the Seasonal Worker Programme, formerly called the Pacific Workers Seasonal Pilot Scheme.

thanks

[Tracey_H]

Hi @LifeLongLearner 

Thanks for your post and my apologies for the delay in replying. I have been looking into this for you and, at this stage, you will need to manually calculate the employee's PAYG to ensure that you are withholding the correct amount. I'm sorry I couldn't help more with this but I will update you if I find out more information.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[gavin12345 · Accepted solution]

Hi @LifeLongLearner 

If the employees are not Working Holiday Makers (as defined by the ATO) you should probably not use the Working Holiday Maker tax table. Perhaps use Withholding Variation instead and set the rate to 15%. The PAYG should then calculate as a straight 15%, irrespective of amount earned.

Regards

Gavin