Sunshine Coast Region, Queensland
Accountant in Chevallum
Pickers on the payroll, and a strawberry year that isn't like the last one
Payroll, compliance and tax returns for Chevallum growers and rural households, from a CPA practice.
Chevallum is a rural locality 10.6 km south of Nambour, with the Bruce Highway along part of its western edge and Eudlo Creek running through it. It is known for its strawberries and takes part in the local Strawbfest. The name is thought to come from the Aboriginal words cha-balan, meaning flat place.
A small locality with a school since 1921
Chevallum's history and its 2021 Census.
Chevallum State School opened on 1 November 1921, shared a teacher with a neighbouring school from 1924, and moved to its present site on Chevallum Road in 1962. It had 468 students in 2018 and runs a permaculture-based kitchen garden; a local permaculture group focused on organic and sustainable farming meets there. The former school building is now a community centre run by a Lions Club.
The 2021 Census counted 467 residents, up from 441 in 2016, in 159 private dwellings. The median age was 45, households averaged 3.2 people, and the median weekly household income was $2,016.
Growers: three things to get right
Registering before you pay a working holiday maker
Why it happens
A farm takes on pickers and packers for the season, and some are on Working Holiday (subclass 417) or Work and Holiday (subclass 462) visas.
Why it matters
To employ working holiday makers, a business must be registered for PAYG withholding and then register as an employer of working holiday makers before making the first payment. A registered employer withholds 15% on the first $45,000 earned, with foreign resident rates above that.
How we help
We handle the complex rules and reporting requirements so you can stay confident that everything is under control. Check each worker's visa subclass when they start.
Getting the withholding rate right
Why it happens
A farm that hasn't registered, or a worker who hasn't provided a tax file number, falls outside the 15% rate.
Why it matters
An employer who isn't registered must withhold at foreign resident rates, 30% up to $135,000, and may face penalties. If a worker gives no TFN, the employer withholds 45%.
How we help
Stay compliant with ATO regulations, avoid penalties confidently. Collect a TFN declaration from every new starter before the first pay run.
Income averaging for primary producers
Why it happens
A strong season can be followed by a weak one, from weather, prices or yields.
Why it matters
Income averaging spreads an individual primary producer's income and tax over up to 5 years. When your average income is lower than your basic taxable income for the year, you receive an averaging tax offset; when it is higher, you pay extra tax on the averaging component. You can opt out for 10 income years with a written election lodged with your return, and it can't be revoked.
How we help
Once required information is complete, common lodgements are prepared within agreed timelines.
Frequently asked questions
Do I need to register to employ backpackers on my Chevallum farm?
Yes, if they hold a 417 or 462 visa. Register as an employer of working holiday makers before you make the first payment. You must already be registered for PAYG withholding.
What rate do I withhold from a working holiday maker?
15% on the first $45,000 if you are registered, and foreign resident rates above that. If you aren't registered, foreign resident rates apply from the first dollar.
What is income averaging?
A system that evens out a primary producer's income tax over up to 5 years, through an offset in lower years and extra tax in higher ones, so a single strong season isn't taxed as if every year were like it.
Can I opt out of income averaging?
Yes, for 10 income years, with a written election lodged with your tax return. The election can't be revoked.
Where to next
Have a question?
Before the season starts
Clear, timely insights for confident decisions.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm