Ok, guys…I have good news regarding the Working Holiday Visa for Australia…
The changes just keep coming to the Working Holiday Visa for Australia which are making it easier for backpackers and travellers that want to spend some time in Australia working much easier.
This is in turn making saving cash while in Australia much easier, so you can save more for local or onward travel. All the changes to the Working Holiday Visa in Australia are all good for the traveller and I couldn’t be more excited to tell you all about it.
I had already reported that the tax changes that were originally going to disadvantage travellers and backpackers to Australia that wanted to work in Australia have changed after the Australian government relented to pressure from tourism bodies and employers of backpackers and travellers.
Originally, It was introduced that from July 2016 Travellers and backpackers to Australia that want to travel on the Working Holiday Visa would have the $18,000 tax-free income concession taken away and would have to pay a massive 32.5% for EVERY dollar earned while in Australia.
Of course the result was a lot of grumpy travellers, tourism officials and employers of the travellers, especially from Australian farms who rely on travellers and backpackers as staff to man the farms in season.
A lot of folk including myself thought this backpacker tax was a completely silly idea!
The Good News regarding Australian Working Holiday Tax…
The federal government has finally listened. In September cabinet met and announced that the tax rate that would be enforced was a much more reasonable rate of
19% 15% for every dollar earned from January 1st 2017 – Travellers win! Further update! – There have been more changes to the Australian Backpacker Tax so read my updates article for backpacker tax in Australia here.
The normal tax rate will apply for those who earn above $37,000AUD. So even though there is an increase it is still a very reasonable rate of tax and often far cheaper than what you see in Europe by way of tax.
So, because of this, it makes Australia still a great country to come, work and play. And as I have always said there is heaps of jobs in Australia that often pay quite handsomely and this tax announcement is just the cherry on top!
Now for some more good news…
Previously you could only work for one employer for a maximum of 6 months. This of course could be extremely annoying for holders of the Working Holiday Visa for Australia because after 6 months (which really isn’t that long if you are settled) you would need to go and get another job – annoying as!
So the good news is; From 1 January 2017, a working holiday visa holder may work for the same employer for 12 months, provided the second 6 months is worked at a different premises, in a different region.
I think this is great news as it gives you and your employer the opportunity for longer employment which means less stress and more opportunities for travellers. Awesome.
But, wait…It gets better….
The fee for the application for the Working Holiday Visa for Australia has sat at $440 AUD for quite some time now. Very rarely do these fees go down. But I have some news that should at least blow that financial frown of your face.
From 1 January 2017, this fee is dropping from $440 AUD to $390 AUD. That is $50 reduction. Lets be honest; $390 is still a lot of money but hey, it could of gone up.
So any discount is a good discount and because the earning potential in Australia is high you can offset this fee pretty quickly when you start working over here.
But, wait there is more…
I actually think this is the best part of these changes. From 1 January 2017, the age limit for a Work and Holiday Visa for Australia will increase from 30 to 35 years old. Boom!
30 just seemed too young especially for those who want to travel a bit later in life. So, yes, I can announce the age will be raised to 35. Super good news for those who have often asked me “Can I work in Australia if I am over 31?”. Now the answer is; you sure can!
So to summarise these changes, from January 1st 2017…
- The rate of
19%15% for every dollar will be introduced . The normal tax rate will apply for those who earn above $37,000AUD.
- A working holiday visa holder may work for the same employer for 12 months, provided the second 6 months is worked at a different premises, in a different region.
- The fee for the application for the Working Holiday Visa for Australia has dropped from $440 AUD to $390.
- The age limit for a Work and Holiday Visa in Australia will increase from 30 to 35 years old
So all and all it is great news for Travellers and backpackers coming to Australia looking at coming to Australia to work using the Working Holiday Visa for Australia.
Anything I have missed? Let me know in the comments. And if you are coming to Australia with a Working Holiday Visa let me know what you are most excited about and when you are coming!
Remember, if you are looking at coming to Australia for work I have partnered with Jobs 4 Travellers to give you guys a special offer to get you into employment as soon as possible and to get some great assistance to get you settled.