What do you need to know about Backpacker Tax?
The agricultural sector is a popular place for overseas workers and backpackers to search for employment. Farm jobs, such as picker packers, farm hands, and even housekeeping, are great temporary positions for travellers to take up.
This kind of employee requires particular treatment when it comes to taxes. There are different criteria when it comes to dealing with an ‘Australian Resident’ as compared to a ‘Foreign Resident’. The People in Agriculture “Overseas Workers and Taxation” fact sheet states:
“Foreign residents pay a higher rate of tax and they are not entitled to a tax-free threshold which means they pay tax on every dollar of income they earn in Australia. […] Generally, the ATO considers a person to be an Australian resident for tax purposes if they:
- Have always lived in Australia or […] have come to Australia and now live here permanently; are an overseas student doing a course that takes more than six months to complete;
- Have been in Australia continuously for six months or more, and for most of that time worked in the one job and lived in the same place;
- Will be or have been in Australia for more than half of the financial year (unless their usual home is overseas and they do not intend to live in Australia)."
It’s important to be aware of the rates at which employers should be taxing farm jobs in which foreign residents (backpackers) are employed. Backpackers can be a great asset to your roster for farm jobs such as machinery operators and general farm hands – so don’t be put off by a little extra research!
It’s Ag Show Season!
There are 2 upcoming Agricultural Shows in April. The Harvey Agricultural Show is running on the 28th, and the Balingup Small Farm Field Day is running on April 21st. Visit their websites to find out about all the fantastic events and competitions running this year. Hopefully you will be able to take some time off to support your local agricultural show in 2018. Rural Enterprises will keep you updated through our blog with dates for upcoming shows - we will make sure you don't miss out!
Seeding recruitment is well underway for 2018 and Emma and Renae are working away to find YOU their best candidates! If you haven’t already, register your job vacancy details now. You can also review the Featured Candidates on our website to get a taster of those available.
Fantastic client of ours with great history of long term staff and great feedback from previous casuals. A permanent Senior Farm Hand/2IC is required in Lake King, Western Australia. If you are looking for a step up in your career, this is a great stepping stone as the farmer is very supportive in training the right person for this position. Excellent/new modern machinery with GPS/Autosteer. This is a very relaxed working environment and would suit those looking for a work/family life balance. Click here for more details…
Estonian couple, both grew up on farms & have operating experience. 25 & 20 years old, both non smokers and look to work on the same farm. WHV until December 2018. Own vehicle and AVAILABLE NOW. Both seeking a machinery operating role, ideally on the air seeder. Both looking for $25 per hour. Flexible on location. Both worked in WA recently spreading Fertiliser on a Fendt 930 & JD6930, also operated a Loader and Dump Trucks. They have livestock & fencing experience. Both received a great reference from this farmer advising both would be capable and competent operating a seeder.