Gross Income
$35,000.00
Total Tax
$5,950.00
Take-Home Pay
$29,050.00
Effective Rate
17.0%
Visa
WHM Rates
Resident Rates
Working Holiday Maker Tax Rates
Working holiday makers (WHMs) on 417 and 462 visas are taxed at special rates: 15% on the first $45,000, then standard resident rates apply to income above that. This means no tax-free threshold, but a lower rate on the first $45,000 compared to non-residents (who pay 30% from the first dollar).
Employer Registration
Your employer must be registered with the ATO as a WHM employer for the correct withholding rates to apply. If not registered, the standard foreign resident rates (30% from the first dollar) may be withheld instead.
Superannuation
WHMs are entitled to superannuation guarantee (12%) from their employer. When you permanently leave Australia, you can apply for a Departing Australia Superannuation Payment (DASP), which is taxed at 65% for WHMs.
Medicare Levy for WHMs
Working holiday makers are generally subject to the 2% Medicare Levy on their taxable income. However, if your country has a reciprocal health care agreement with Australia, you may be eligible for Medicare benefits during your stay.
ATO-Aligned: Uses 2025-26 WHM tax rates. Both 417 and 462 visa holders are taxed at the same rates. You must lodge a tax return if you earned income in Australia.
Special tax rules for backpackers on 417 and 462 visas working in Australia
What is the working holiday tax rate?
Working holiday makers (WHMs) on subclass 417 and 462 visas pay a special flat tax rate of 15% on the first A$45,000 of income. Above A$45,000, normal non-resident tax rates apply — 32.5% up to A$120,000, 37% up to A$180,000, and 45% above that. This means on A$30,000 of earnings, you pay A$4,500 in tax (15%). There is no tax-free threshold for working holiday makers.
Does the employer need to be registered?
Yes. Your employer must register with the ATO as a working holiday maker employer before they can apply the special 15% tax rate. If your employer is not registered, they must withhold tax at the normal non-resident rate of 32.5% from the first dollar. Check with your employer to make sure they are registered. If they are not, you may be able to get the excess tax back when you lodge your tax return.
Do working holiday makers pay the Medicare Levy?
No. Working holiday makers are not liable for the 2% Medicare Levy. However, you also cannot access Medicare services unless your home country has a reciprocal health care agreement with Australia (like the UK, Ireland, New Zealand, Belgium, Finland, Italy, and others). Most WHMs need private health insurance, which costs about A$50 to A$100 per month.
Do you need to lodge a tax return?
Yes. All working holiday makers must lodge an Australian tax return at the end of the financial year (30 June) or when they leave Australia. You can lodge online through myTax using a myGov account. If you have had tax withheld at a higher rate than 15%, lodging a return means you get a refund. You need your income statement (previously called a group certificate or payment summary) from every employer you worked for.
What deductions can working holiday makers claim?
You can claim the same work-related deductions as any other taxpayer. Common claims include protective clothing (sun hats, boots, gloves), tools and equipment, travel between work locations (not home-to-work travel), phone and internet used for work, and union fees. If you work on a farm, you can claim items like sunscreen and insect repellent. You need receipts for claims over A$300 in total for a category.
What happens to your super when you leave?
When you leave Australia permanently and your visa has expired or been cancelled, you can apply for a Departing Australia Superannuation Payment (DASP). The tax rate on DASP for working holiday makers is 65% on the taxed element and 65% on the untaxed element. On a super balance of A$5,000, you would receive about A$1,750 after tax. Apply through the ATO website using your passport and visa details.
How does the tax compare to regular employees?
A regular Australian resident earning A$30,000 pays about A$1,717 in tax (after the A$18,200 tax-free threshold). A working holiday maker earning A$30,000 pays A$4,500 (15% flat rate). At A$45,000, a resident pays about A$4,592 while a WHM pays A$6,750. Above A$45,000, the gap narrows because WHMs start paying higher non-resident rates. The WHM rate is simpler but generally results in more tax for lower incomes.
Can you change visa and get a different tax rate?
If you switch from a working holiday visa to another visa type (like a student visa or skilled worker visa), your tax rate changes from the date the new visa is granted. If you become a tax resident, you get the tax-free threshold and resident marginal rates from that date. Your final tax return for the year will be split between the two rates. Keep records of your visa grant dates to ensure your tax is calculated correctly.
ATO-Aligned: Based on 2024-25 ATO rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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