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In September 2016, our treasurer Scott Morrison announced that from 1 January 2017 the tax rate for the first $37,000 for all working holiday makers in Australia will be reduced from 32.5% to 19%.

In November 2016, he made another announcement reducing the rate further from 19% to 15% and the law received Royal Assent on 2nd December 2016.
However, for any wages that were paid during 1st July 2016 to 31st December 2016, the employer still has the obligation to withhold 32.5%.

We have seen a huge number of self-managed superannuation funds created in the last 20 years as a vehicle to build retirement savings and at the same time, save tax.

This has put old family trust on the back burner to some degree as a legitimate investment vehicle of choice to hold investment assets.

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