Working holiday makers
If you work in Australia as a working holiday maker (WHM), your employer will withhold tax from your pay and you may need to lodge a tax return each year.
You are a WHM if you have a visa subclass of either:
- 417 Working Holiday
- 462 Work and Holiday (backpackers).
You can check your visa status using the Visa Entitlement Verification Online systemExternal Link.
On this page
Your residency for tax purposes
For tax purposes in Australia, individuals will be either:
- an Australian resident
- a foreign resident.
For most WHMs, whether you are an Australian or a foreign resident for tax purposes does not affect the rate of tax you pay.
The only exception to this is if you are both:
- an Australian resident for tax purposes
- from a non-discrimination article (NDA) country.
For more information, see Taxation of Australian resident WHMs from NDA countries.
Most people who come to Australia for a working holiday or to visit are foreign residents for tax purposes.
To work out your residency as a WHM, see Are you an Australian resident for tax purposes if you come for a working holiday or visit?
Australian resident WHM from NDA country
Some WHMs may be eligible to be taxed on the same basis as a resident Australian national.
To be eligible, you must be:
- considered an Australian resident for tax purposes and
- from an NDA country.
A resident Australian national is someone who meets both of the following:
- the person is a resident of Australia for tax purposes
- the person is a permanent resident of Australia or an Australian citizen.
Australia’s tax treaties with NDA countries contain non-discrimination articles that affect how much tax is payable.
For more information, see Taxation of Australian resident WHMs from NDA countries.
Tax withheld by your employer
If you are a WHM, and your employer is registered with us as a WHM employer, they will withhold tax at a rate of 15% for the first:
- $37,000 you earn during 2019–20 and earlier income years
- $45,000 you earn during 2020–21 and later income years.
Higher rates of withholding will apply above these thresholds. For more information, see tax table for working holiday makers.
Example: income below $45,001 for 2020–21 and later income years
On 10 January 2022, Louie starts work with Bob's Mango Farm in Far North Queensland, a registered WHM employer. As part of the normal employment process, Louie gives Bob his completed tax file number declaration and tells him that he is a WHM on a 417 Working Holiday visa.
As Bob is a registered employer with us, the first $45,000 of Louie's income is taxed at 15%.
Louie is paid weekly and earns $200 a day. After five days of work, Louie receives his first pay of $1,000, from which $150 tax is withheld and sent to us.
Louie's total tax withheld is calculated as follows:
(Days worked × wage per day) × tax withholding rate = total tax withheld
5 days × 200 × 15% = $150.
End of exampleIf your employer is not registered as a WHM employer, they must withhold tax from your pay using foreign resident tax rates.
Example: tax withheld when working for an employer that isn't a registered WHM employer
Aleks is on a 417 Working Holiday visa and starts working for Pamela's Berries. As Pamela is not registered as an employer of WHMs, Pamela withholds tax at the foreign resident tax rates starting at 32.5%.
Aleks is paid weekly and earns $200 a day. After five days of work, Aleks receives his first pay of $1,000, from which $325 tax is withheld and sent to us.
Aleks' tax withheld is calculated as follows:
Aleks's pay × 32.5% = tax withheld
$1000 × 32.5% = $325
End of exampleStarting work in Australia
Before you start work in Australia, you should:
Apply for a tax file number
If you plan to work in Australia, you need a tax file number (TFN). Your TFN is your personal reference number in our tax system.
You can apply for a TFN online once you have your work visa.
You don't have to have a TFN, but without one you pay more tax.
Complete a TFN declaration for your employer
When you start work, you give your employer a Tax file number declaration. This helps the employer work out how much tax to withhold from your pay.
Your employer will check if you have a visa subclass 417 Working Holiday or 462 Work and Holiday, but you should tell them anyway to ensure they tax you correctly.
Your employer is required to register with us as an employer of WHMs. WHMs do not need to register themselves with us.
As a WHM, your employer has to also pay superannuation for you if you are an eligible employee.
Know your workplace rights as a working holiday maker
Everyone working in Australia has the same workplace rights under the National Employment Standards (NES). This includes WHMs.
The national minimum wage and NES make up the minimum employment entitlements that must be provided to all employees.
For more information, see:
End of income year or finishing work
At the end of the income year or when you finish working in Australia, consider if you need to:
Access your income statement
At the end of the income year or when you finish work in Australia, you may choose to or need to lodge a tax return. The information on your income statement or payment summary will help you to work out if you need to lodge a tax return.
Your employer will usually provide an income statement through Single Touch Payroll (STP). It will show the amount you earned, tax withheld and superannuation that has been paid. You will be able to access and see your year-to-date tax and super information (income statement) in ATO online services through your myGov from within Australia or otherwise contact us.
If your employer is not yet using STP they will provide you with a payment summary.
Lodge a tax return
The Australian income year starts on 1 July and ends on 30 June the following year. Depending on your circumstance you may want to lodge a return.
You don't need to lodge a tax return or a non-lodgment advice if both of the following apply:
- All of your income was earned as salary or wages while you were a WHM.
- The total of your taxable income for the income year was less than
- $37,001 for 2019–20 and earlier income years
- $45,001 for 2020–21 and later income years.
Example: income below $45,001 for 2020–21 and later income years
Marjorie lives in Slovakia and has come to Australia for a working holiday. She was in Australia for the whole of the 2021–22 income year.
Marjorie is not a resident for tax purposes in Australia.
Marjorie works for a number of employers during the income year earning $25,000. Her employers withheld $3,750 tax from her salary or wages.
As Marjorie's total taxable income for the year is below $45,001, she isn't required to lodge a tax return for the 2021–22 income year.
End of exampleYou will need to lodge a tax return if you want to claim any deductions.
You may also want to lodge a tax return if you think you are, or became, an Australian resident WHM from a non-discrimination article (NDA) country during an income year. For more information, see Taxation of Australian resident WHMs from NDA countries.
If you leave Australia permanently before 30 June, you can lodge your tax return early.
Apply for a departing Australia superannuation payment (DASP)
When you leave Australia and return to your home country, you can apply to have your super paid to you as a departing Australia superannuation payment (DASP). The tax on any DASP made to WHMs on or after 1 July 2017 is 65%.
You can apply after you leave Australia if you meet all DASP requirements.
Working holiday makers on a visa subclass 417 Working Holiday or 462 Work and Holiday (backpackers) may need to lodge a tax return depending on the amount of income they earn.