Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:15:p2
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 15 (pt 2/5)
Character Range: 305336–308057

registered and total payments you have made to the employee for the income year prior to this payment are from $45,001 to $135,000 and the employee has given you a TFN

-          column 4 if you are registered and total payments you have made to the employee for the income year prior to this payment are from $135,001 to $190,000 and the employee has given you a TFN

-          column 5 if you are registered and total payments you have made to the employee for the income year prior to this payment are more than $190,000 and the employee has given you a TFN

-          column 6 if you are registered and the employee has not given you a TFN.
Example: using the withholding lookup tool

A foreign resident employee is working in Australia under a working holiday makers visa (subclass 417) and has earnings for the week of $680.70. They have provided their TFN on a Tax file number declaration. The total payments you have made to them do not exceed $45,000 for the 2024-25 income year.

To work out the correct amount to withhold, input $680 into column 1 in the Working holiday makers Withholding lookup tool.

The tool will automatically calculate the withholding result of $102 in column 2. This is the amount you withhold, as a registered employer, where the employee has given you a TFN.

Registered employer

You need to register with us before you employ a working holiday maker. If you are registered, you will be able to withhold at a flat rate of 15% up to $45,000 in total payments made to each individual working holiday maker within an income year.

Where total payments exceed $45,000, see Table A in this schedule for the applicable withholding rate.

Unregistered employer

If you have not registered with us to withhold at working holiday maker tax rates, you are required to withhold at foreign resident rates. These are specified in the tax tables for weekly, fortnightly or monthly payments at ato.gov.au/taxtables.

Using a formula

If you have developed your own payroll or accounting software package, use the formulas and coefficients outlined below to calculate the withholding amount.

The formulas comprise linear equations of the form y = ax, where:
    * y is the amount to be withheld expressed in dollars
    * x is total payment made to the employee for the pay period, ignoring any cents
    * a is the value of the coefficient as shown in Table A.

Table A: Working holiday makers income tax rates

Table A: Working holiday makers income tax rates for 2024-25
Taxable income       Tax rate                                  Value
                                                                 (a)
$0 – $45,000         15% on each $1 up to $45,000              0.15
$45,001 –