The ATO has advised that the recent change to tax for working holiday makers means there are extra steps practitioners need to take when preparing an early 2017 income tax return for these clients.
A schedule must be provided identifying income earned up to 31 December, and from 1 January onwards, to ensure the correct tax rates are applied.
When providing the schedule, it should identify:
- Income earned from 1 July 2016 to 31 December 2016:
- Working holiday maker income earned from 1 January 2017 to 30 June 2017; and
Any deductions associated with the income period the client is claiming for.