Tax Return for Working Holiday Makers in Australia

Working holiday makers (WHMs) on subclass 417 and 462 visas are taxed differently from Australian residents. A flat tax rate of 15% applies to the first $45,000 of income earned through a WHM employer, rather than the tax-free threshold that applies to residents. Understanding how the system works helps ensure you receive the correct refund when you leave or lodge your return.

The Working Holiday Maker Tax Rate

WHMs are subject to the following rates:

Important: The 15% rate applies only to income earned from employers who are registered as WHM employers with the ATO. If your employer is not registered, you are taxed at non-resident rates (32.5% from the first dollar, with no tax-free threshold) — which is significantly higher.

There is no tax-free threshold for WHMs. Income tax applies from the first dollar.

The Medicare Levy does not apply to most WHMs (working holiday visas are excluded from Medicare levy in most cases).

Confirm Your Employer Is Registered

Before starting work, ask your employer: “Are you registered as a Working Holiday Maker employer with the ATO?”

An employer that is not registered will withhold tax at the non-resident rate, resulting in significant over-withholding that you will need to claim back via a tax return.

You can check whether an employer is a registered WHM employer via the ATO’s online ABN lookup.

Do You Have to Lodge a Tax Return?

You must lodge if:

• Tax was withheld from your pay and you want a refund
• Your income exceeded $45,000 (the 32.5% rate applies to income above this)
• You had Australian-sourced income from multiple sources

Even if you had a small amount of tax withheld, lodging is worth doing to receive any refund owing.

How to Lodge

WHMs can lodge via:

1. myTax (via myGov) — if you have an Australian TFN and a myGov account
2. A registered tax agent — convenient if lodging from overseas after leaving Australia
3. Paper return (Form NAT 2541) — for those without online access

Steps to lodge via myTax:

1. Set up a myGov account and link the ATO
2. Wait until after 14 August for income statements to be finalised
3. Go to Tax → Returns → Lodge
4. Check that all employer income is pre-filled correctly
5. Confirm you are lodging as a Working Holiday Maker
6. Enter your bank account details for the refund (must be an Australian bank account, or use a tax agent to receive the refund)
7. Submit

If you have left Australia, you can still lodge a return. You will need an Australian bank account for the refund, or a registered tax agent can receive it on your behalf.

What Refund Can You Expect?

If your employer correctly withheld 15%, and you had no significant deductions, the refund is relatively small — most of what was withheld was the correct tax. Common reasons for a refund:

• Total income for the year was low (e.g., you only worked for part of the year)
• The employer withheld at the non-resident rate (32.5%) instead of 15% — in this case, the refund can be substantial
• You had work-related deductions (these reduce taxable income in the normal way)

Working Holiday Makers and Superannuation

WHMs working in Australia are entitled to superannuation if they meet the same criteria as other workers (generally, earning $450/month from an employer — note the threshold was removed from 1 July 2022, so super accrues from the first dollar).

When you leave Australia permanently (or after your visa ends), you can claim your super back via the Departing Australia Superannuation Payment (DASP). Note: DASP for WHMs is subject to a 65% tax rate — a specific withholding rate applied to the DASP for this visa class.

Frequently Asked Questions

What if I earned income from non-WHM sources (e.g., freelance work, Airbnb)? Income from sources other than registered WHM employers may be taxed at non-resident rates. The tax rules for mixed-income WHMs are complex — a tax agent is recommended.

Can I claim the same deductions as other workers? Yes. Work-related deductions, union fees, self-education, and vehicle expenses are available to WHMs on the same basis as other taxpayers. The deduction reduces taxable income before the 15% rate is applied.

I left Australia and forgot to lodge. Can I still claim my refund? Yes. You can lodge via myTax from overseas or engage an Australian tax agent to lodge on your behalf. There is no time restriction for lodging and claiming a refund, though the ATO’s standard amendment window (two years) applies.

What happens if my employer was not registered as a WHM employer? You were over-withheld at 32.5% instead of 15%. File a return and the excess withholding will be refunded. There is no penalty to you for your employer’s registration status.

This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.