Working Holiday Visa Tax in Australia

🧳 Who this applies to🔗

This is for people working in Australia on a subclass 417 (Working Holiday) or subclass 462 (Work and Holiday) visa. The ATO classifies these visa holders as working holiday makers (WHMs). This is a specific tax category, not just a description of what you are doing.

🎯 The essential: For the WHM rates to apply, your employer must be registered with the ATO as a working holiday maker employer. If they are not registered, they must withhold at the higher foreign resident rate instead. Always check this when you start a new job.

💸 Your tax rate as a working holiday maker🔗

The 417/462 backpacker tax is straightforward. You pay 15% on every dollar up to $45,000. No tax-free threshold, no exceptions. Above $45,000, the rates step up. Here is the full table for 2026-27.

Worked example 1: you earn $40,000 for the year. Tax is 15% flat: $6,000. Worked example 2: you earn $55,000. The first $45,000 is taxed at 15% ($6,750) and the remaining $10,000 at 30% ($3,000), for total tax of $9,750. Most working holiday makers earn well under $45,000, so the 15% rate is the one that matters in practice. For how the standard resident brackets differ, see our guide to Australian tax brackets.

🌏 Does tax residency matter?🔗

For most working holiday makers, not much. The WHM classification applies to income from a registered WHM employer regardless of whether you are technically a tax resident or a foreign resident. The 15% rate kicks in from dollar one either way.

Where residency can matter is for income outside employment, such as bank interest, overseas income or capital gains, and for certain offsets. If your situation is complicated, talk to a registered tax agent. For a standard working holiday, the WHM rates are what apply.

🔢 Getting a Tax File Number (TFN)🔗

Apply for a TFN before you start work. It is free and takes about 10 minutes online via the ATO website. Without a TFN on file, your employer is legally required to withhold 45% of your gross pay. That is a lot of money sitting with the ATO until you sort it out.

You will need your passport and visa details. Processing usually takes a few weeks, but you can give your employer your application reference number in the meantime. Once you have your TFN, give it to every employer you work for, and keep it safe.

💰 Will you get a tax refund?🔗

Quite possibly, yes. A refund is common when you only worked part of the financial year (1 July to 30 June), when your employer withheld more than the correct amount, or when you had deductible work expenses like tools, uniforms or work-related travel.

To find out, you need to lodge a tax return. You can do this yourself through myTax via myGov, or use a registered tax agent. Lodge even if you think you owe nothing. If you do not lodge, any refund you are owed stays with the ATO. If you have already left Australia, you can still lodge online, but you will need an Australian bank account to receive the refund, so keep one open until the money lands. Wondering about timing? Our guide on how long a tax refund takes and how to lodge a tax return walk you through it. Always check ato.gov.au for the current lodgement deadlines for your financial year.

🏦 Superannuation: you earn it, you can claim it back🔗

Every employer in Australia must pay superannuation on top of your wages. The Superannuation Guarantee rate is 12% of your ordinary wages. Super goes into a fund in your name and sits there while you work. When you leave Australia, you can claim most of it back through the Departing Australia Superannuation Payment (DASP).

You apply online through the ATO DASP system after you have left Australia and your visa has expired or been cancelled. If you worked multiple jobs, you may have super in several funds, so consolidate into one fund before you leave: one DASP claim is much simpler than three or four. Our full walkthrough on how to claim your super back when leaving Australia covers every step.

🩺 The Medicare levy: you probably do not pay it🔗

The Medicare levy is an extra 2% charge that Australian residents pay to fund the public health system. Most working holiday makers do not pay it. If you are a foreign resident for tax purposes during your stay, which most WHMs are, you are fully exempt.

To claim the exemption, tick the Medicare levy exemption section in your tax return. Your employer may still withhold a Medicare levy component during the year, so claiming the exemption when you lodge means you get that amount back as part of any refund. If you became an Australian tax resident at some point during your stay, which is uncommon for WHMs but possible, different rules apply, so see a registered tax agent.

✅ Arriving and leaving checklists🔗

When you arrive:

• Apply for your TFN at ato.gov.au before you start work.
• Tell your employer you are on a 417 or 462 visa so they apply the correct WHM rate.
• Confirm your employer is registered as a working holiday maker employer with the ATO.
• Keep all your payslips and payment summaries for your tax return.
• Track your super contributions to make sure they are landing correctly.

When you leave:

• Lodge your tax return for any financial year you worked in Australia.
• Keep your Australian bank account open until any refund and DASP payment have cleared.
• Consolidate your super funds into one before you leave.
• Apply for DASP after your visa expires or you leave Australia.
• Check the ATO portal for any outstanding notices before you go.

❓ Frequently asked questions🔗