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:
- 417Working Holiday
- 462Work 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
- Starting work in Australia
- End of income year or finishing work
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 10January 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 417Working 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 $200aday. After fivedays of work, Louie receives his first pay of $1,000, from which $150tax 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
5days×200 × 15%=$150.
End of example
If 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 417Working 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 $200aday. After five days of work, Aleks receives his first pay of $1,000, from which $325tax 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 example
Starting work in Australia
Before you start work in Australia, you should:
- Apply for a tax file number
- Complete a TFN declaration for your employer
- Know your workplace rights as a working holiday maker
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 subclass417Working Holiday or 462Work 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:
- National Employment Standards (NES)External Link
- Fair work ombudsman – visa holders and migrantsExternal Link.
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
- Lodge a tax return
- Apply for a departing Australia superannuation payment (DASP)
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 1July and ends on 30June 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 example
You 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 30June, 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 1July 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.
FAQs
Are you a working holiday maker Meaning? ›
Working holiday makers (WHMs) are temporary visitors to Australia who hold a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462).
What are the different types of working holiday maker visa? ›The Working Holiday Maker program has two types of visas: Working Holiday visa (Subclass 417) and Work and Holiday visa (Subclass 462) depending on your country of residence.
How long does it take to get a Working Holiday visa? ›Most applicants will hear a response within 90 days. Check the latest processing times for the Working Holiday visa (subclass 417) on the Home Affairs website.
What is the main advantage of working holidays? ›A working holiday makes a good break
Later in life, working holiday experiences are often helpful as a way to get out of a job rut back home and open yourself to new choices. The advantage of a working holiday is it allows for this break with some employment opportunities in the mix.
Backpackers' higher tax rates than residents
The Working Holiday Makers (Backpackers) Tax rules imposes a higher rate of tax on 417 visa holders than that paid by other Australian residents. Under current the backpacker tax scale, income on the first slice of income up to $45,000 is taxed at the rate of 15%.
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.
How hard is it to get a Working Holiday visa? ›Eligibility requirements for US citizens:
Must be aged 18-30. Must have valid US passport. Must be a citizen and permanent residence of the country named on your visa. Must have proof of sufficient funds to live on during your stay ($2,900 USD)
Working Holiday visas can bring a new spin on the regular tourist experience. It allows you to both travel and connect with more people to see what they do for a living, as well as experience it firsthand. It can be quite a complicated process, but it is worth it.
Whats the difference between a work visa and a Working Holiday visa? ›Both visas target a cultural exchange experience – however, each visa program is eligible to a different group of nationalities. 1. The Work and Holiday 462 visa has an English language and education requirements, while the Working Holiday 417 visa does not. This is generally a tertiary qualification.
Can a US citizen get a Working Holiday visa? ›All six countries where U.S. citizens can obtain a Working Holiday Visa (Australia, Ireland, New Zealand, Singapore, Canada, and South Korea) require Working Holiday Visa applicants to either be enrolled or have completed a degree from a institution of higher education at the time of their application submission.
How much money do you get for a Working Holiday visa? ›
The Working Holiday Visa costs around £283 per person or $495 since July 2021. It is valid for one year and allows you to travel to Australia for 12 months. It is renewable twice under certain conditions. Please note that if your application is refused for any reason, you will not be reimbursed.
How easy is it to get a Working Holiday visa for Canada? ›To get a Working Holiday Visa in Canada, it will be necessary to pay a participation fee of CAD$150, and an open work permit holder fee of CAD$100. IRCC will assess your application and may request additional documents. If your application is a success, a letter of introduction (LOI) will be sent to your account.
Do people get paid more to work holidays? ›There is nothing in state law that mandates an employer pay an employee a special premium for work performed on holidays, Saturdays, or Sundays, other than the overtime premium required for work in excess of eight hours in a workday or 40 hours in a workweek.
Why do companies pay for holidays? ›Despite this, many private companies provide some form of holiday pay to their employees. This is because providing holiday benefits are often expected and used to reduce employee turnover and improve morale.
How many paid holidays is good? ›An average full-time employee in a small, privately-owned business in the U.S. receives about 7.6 paid holidays per year, according to the Bureau of Labor Statistics. That number also breaks down even further: Technical/professional employees get 8.5-ish days a year.
How much tax do working holiday makers get back? ›| Taxable income | Tax rate | Value (a) |
|---|---|---|
| $0 – $45,000 | 15% on each $1 up to $45,000 | 0.15 |
| $45,001 – $120,000 | 32.5% on each $1 over $45,000 to $120,000 | 0.325 |
| $120,001 – $180,000 | 37% on each $1 over $120,000 to $180,000 | 0.37 |
| $180,001 and over | 45% on each $1 over $180,000 | 0.45 |
Why are bonuses are taxed so high? Bonuses are taxed heavily because of what's called "supplemental income." Although all of your earned dollars are equal at tax time, when bonuses are issued, they're considered supplemental income by the IRS and held to a higher withholding rate.
Do working holiday makers get the tax-free threshold? ›They do not have the tax-free threshold of $18,200 that Australian nationals enjoy. Therefore, they pay more tax than an Australian national would pay. Catherine Addy, a United Kingdom national, spent 2 years in Australia on a working holiday visa (Subclass 417).
How much tax do I pay on a 417 working visa? ›If you are travelling in Australia on a 417 visa (a working holiday visa) or a 462 visa (a work and holiday visa) then you are subject to the 15% tax rate.
Are holiday gifts taxable income? ›While de minimis benefits can be a gray area, the IRS has generally deemed items with a value exceeding $100 as too large to qualify as de minimis. Holiday gifts can also be nontaxable if they are in the form of a gift coupon, if given for a specific item (with no redeemable cash value).
Is Job maker taxable income? ›
Tax consequences
All payments under the JobMaker Hiring Credit scheme are assessable as ordinary income. The normal deductions apply for amounts your business pays to employees if those amounts are subsidised by JobMaker Hiring Credit payments.
- China.
- Russia.
- Saudi Arabia.
- Bhutan.
- Pakistan.
- Nigeria.
- Turkmenistan.
- Iran.
Australia
If you are looking to start an international career to grow exponentially, Australia is one of the top countries where you can easily get a work visa.
- Have a job offer in the US. ...
- Approved petition by the US Citizenship and Immigration Services (USCIS) ...
- Labor certification approval by the Department of Labor (DOL) ...
- Complete the Online Nonimmigrant Visa Application (Form DS-160) and print the confirmation page. ...
- Schedule your interview.
- Australia.
- Canada.
- New Zealand.
- Singapore.
- South Korea.
Australian job market is very competitive. Not all jobs and skills are in equal demand, especially for foreigners. As a foreigner, the most in demand sectors are hospitality, construction, and education.
Do people with work visas get paid less? ›An AP analysis finds that most foreign workers with H-1B visas are paid less than their American counterparts.
How long can you work for a company on a working holiday visa? ›On 19 January 2022, the 6-month work limitation was temporarily relaxed. The relaxation of this condition was initially in effect until 31 December 2022, and it has now been extended until 30 June 2023.
How many hours a week can you work on a working holiday visa? ›Working holiday visas allow the holder to work full time, but a student visa only allows work for 40 hours a fortnight. Unless employers are checking visa status for staff regularly, they may face fines and other penalties.
Who are working holiday makers? ›...
At the end of the income year or when you finish working in Australia, consider if you need to:
- Access your income statement.
- Lodge a tax return.
- Apply for a departing Australia superannuation payment (DASP)
Which countries allow US citizens to work? ›
- Estonia.
- Australia.
- South Korea.
- Ireland.
- New Zealand.
- Singapore.
- Costa Rica.
The only two employment-based immigrant visa categories in which a foreign national may self-petition are National Interest Waiver (EB-2) and Extraordinary Ability (EB-1).
How much does it cost to sponsor a US work visa? ›The most common fees for nonimmigrant work visa sponsorship are: Petition fee: $460. Application fee: $190. American Competitiveness and Workforce Improvement Act charges: $750 to $1,500.
Can US citizens get Canadian Working Holiday Visa? ›Canada's Working Holiday Visa program provides a temporary work permit to young people aged 18 to 35 from over 30 countries. Although the United States isn't listed as a participating country, U.S. citizens can participate if they have the support of a “Recognized Organization”.
How long does a Canadian Working Holiday Visa take to process? ›It takes 56 days to process your application from the date you submit it. Processing will only start after you have submitted biometrics and will stop if we ask for any additional documents. An applicant looks at the “International Experience Canada: How to apply” webpage.
How much money do I need to enter Canada on a Working Holiday Visa? ›Visa cost: CAD $261, Biometrics appointment cost: $85, Support funds required: $2,500 (American citizens don't require support funds). All nationalities must have no criminal convictions in the past five years. Duration: 12-24 months, depending on your nationality.
Can you be fired for refusing to work on Sunday? ›Employers cannot refuse a request to opt out of Sunday working and employees who have opted out have a statutory right not to suffer a detriment for having done so. Employers therefore cannot dismiss workers, select them for redundancy or otherwise treat them unfairly by virtue of their Sunday working opt out.
Is December 8th double pay? ›8 Feast. ONLY workers, who will report for work during the nationwide celebration of the Feast of Immaculate Conception of Mary Thursday, will be entitled to additional pay, according to the Department of Labor and Employment (DOLE).
What holidays make the most money? ›| HOLIDAY | 2019 ($Billion) | 2020 ($ Billion) |
|---|---|---|
| Labor Day | 26.2 | 33.9 |
| Halloween | 8.8 | 8.0 |
| Thanksgiving | 4.2 | 5.1 |
| Christmas | 718.6 | 777.3 |
Unpaid holiday
If your employer refuses to pay you holiday pay, you can ask an employment tribunal to enforce your rights. You may be able to make a claim for all your unpaid holiday pay, even if it goes back for more than a year. You must make a claim within three months of the last date you were not paid holiday pay.
Does PTO include holidays? ›
PTO policies most often include national and floating holidays, paid vacation days, paid family leave, and paid sick leave.
How many holidays do American workers get? ›The number of days varies from employer to employer, but on average, US workers receive around ten days of paid holiday each year. In addition, time off is often accrued, which means that US staff will need to be working in their job for 12 months before they're entitled to ten days of holiday.
How much PTO per year is normal? ›Ten (10) days is the average number of PTO for private sector employees who have completed one year of service, according to the Bureau of Labor Statistics (BLS). This number, rounded to the nearest whole number (it's actually 9.7 days), does not include sick days or paid holidays.
What is the average PTO in USA? ›Average PTO: Zippia
According to a 2022 report by Zippia, “The average amount of PTO in America is 10 days each year.” Employees in larger companies and/or working for the same company for many years usually receive more PTO than those in smaller companies or with less tenure.
Though the national average is 7.6, statistics show that 21% of U.S. employees receive six paid holidays per year. Only 3% of civilian workers in the U.S. receive more than 14 days of paid holidays. Having more than two total weeks of paid holidays might be the dream, but it's extremely uncommon.
What do you mean by working holiday? ›A Working Holiday allows someone to visit a country for longer than the average tourist with the opportunity to take on short-term jobs to save money or at least help fund the trip. Many people seek short-term jobs in multiple regions as a way to explore that country in-depth.
What are holiday makers called? ›Google's dictionary describes a Grockle as "a holidaymaker, especially one visiting Devon or Cornwall" but the word is generally used across South West.
What is another word for holiday maker? ›| day tripper | sightseer |
|---|---|
| adventurer | tourer |
| explorer | out-of-towner |
| holiday-maker | hiker |
| trekker | gallivanter |
| Taxable income | Tax rate | Value (a) |
|---|---|---|
| $0 – $45,000 | 15% on each $1 up to $45,000 | 0.15 |
| $45,001 – $120,000 | 32.5% on each $1 over $45,000 to $120,000 | 0.325 |
| $120,001 – $180,000 | 37% on each $1 over $120,000 to $180,000 | 0.37 |
| $180,001 and over | 45% on each $1 over $180,000 | 0.45 |
⦁ Article 94 of the Labor Code provides that every worker shall be paid his regular daily wage during regular holidays and that the employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate [i.e. 100% holiday pay + day's wage].
Are working holidays worth it? ›
Working Holiday visas can bring a new spin on the regular tourist experience. It allows you to both travel and connect with more people to see what they do for a living, as well as experience it firsthand. It can be quite a complicated process, but it is worth it.
What is an example sentence for working holiday? ›She came from Adelaide to London on a working holiday.
What is a fancy word for holiday? ›nounyearly observance, celebration. ceremony. commemoration. feast day. festival.
Is grockle derogatory? ›The term is widely used in Devon and other areas of rural England where it refers to tourists or people recently relocated from elsewhere; it is mildly derogatory. Climbers in England & Wales use it as a dismissive term for less serious visitors to upland areas.
How do you use holidaymaker in a sentence? ›1. At weekends the roads are jammed with holidaymakers coming to gawp at the parade. 2. The police warned holidaymakers to be on the watch for car thieves.
What is a sweet maker called? ›A confectioner is a person whose job is making or selling sweets and chocolates.
What is a fancy name for cashier? ›A person handling payments and receipts in a shop, bank, or business. teller. clerk. bursar. purser.
What other words can you make with Happy holidays? ›- Merry Christmas.
- Happy Hanukkah.
- Joyous Kwanzaa.
- Yuletide Greetings.
- Happy holidays.
- Joyeux Noël.
- Feliz Navidad.
- Seasons Greetings.
They do not have the tax-free threshold of $18,200 that Australian nationals enjoy. Therefore, they pay more tax than an Australian national would pay. Catherine Addy, a United Kingdom national, spent 2 years in Australia on a working holiday visa (Subclass 417).
How much is a gift from work taxed? ›The gift tax limit is $16,000 in 2022 and $17,000 in 2023. The gift tax rates range from 18% to 40%. The gift giver is the one who generally pays the tax, not the receiver.