On a 417 or 462 working holiday visa, you pay 15% tax on the first $45,000 you earn in Australia, from the very first dollar. Above $45,000 the rate steps up through the standard brackets. That headline figure is only part of what working holiday makers pay in Australia though: a 2% Medicare levy can be added unless you claim an exemption, and the super your employer sets aside is taxed at 65% when you withdraw it on departure.
The 2025–26 Rate Table
The ATO publishes a specific schedule for working holiday maker income. For the 2025–26 financial year:1Australian Taxation Office. Tax Rates – Working Holiday Maker
- $0–$45,000: 15 cents for each dollar
- $45,001–$135,000: $6,750 plus 30 cents for each dollar over $45,000
- $135,001–$190,000: $33,750 plus 37 cents for each dollar over $135,000
- $190,001 and over: $54,100 plus 45 cents for each dollar over $190,000
Unlike Australian residents, who get an $18,200 tax-free threshold, most working holiday makers pay from the first dollar.2Australian Taxation Office. Employers of Working Holiday Makers Earn $30,000 across your stay and you owe $4,500. Pick up high-paying farm, mine, or construction work and push past $45,000, and the excess is taxed at 30%.
What Happens If Your Employer Is Not Registered
The 15% starting rate only applies when your employer has registered with the ATO as a working holiday maker employer. If they haven’t, they must withhold at foreign resident rates instead: 30% from the first dollar up to $135,000.3Australian Taxation Office. Working Holiday Makers You can recover the difference through your tax return, but that ties your money up for months.
Tell your employer up front that you hold a 417 or 462 visa so they apply the right rate, and check your first few pay slips to confirm the withholding looks right.3Australian Taxation Office. Working Holiday Makers
A Better Deal for Residents From NDA Countries
A narrow exception helps some working holiday makers pay less. If you come from a country with a non-discriminatory article (NDA) in its tax treaty with Australia and you also qualify as an Australian resident for tax purposes, you get assessed at whichever produces less tax: the standard WHM rates or the ordinary Australian resident rates with the $18,200 tax-free threshold.4Australian Taxation Office. Taxation of Australian Resident WHMs From NDA Countries
The saving can be substantial at lower incomes. Someone earning $25,000 would owe $3,750 under the WHM schedule, but only $1,088 in income tax at resident rates, and may also qualify for the low income tax offset.4Australian Taxation Office. Taxation of Australian Resident WHMs From NDA Countries The condition is that you genuinely be an Australian resident for tax purposes, which takes more than a few months in the country.
Worth knowing: for most backpackers earning wages, even becoming an Australian tax resident under the 183-day test does not change the WHM rate table. Residency status mainly matters if you’re from an NDA country or if you have investment income like interest or dividends.1Australian Taxation Office. Tax Rates – Working Holiday Maker
The 2% Medicare Levy
The Medicare levy is 2% of taxable income and funds Australia’s public health system.5Australian Taxation Office. What Is the Medicare Levy Most working holiday makers are not eligible for Medicare benefits, so you can apply for an exemption when you lodge your return. You’ll need a Medicare Entitlement Statement from Services Australia confirming you weren’t covered during the relevant period.6Services Australia. Medicare and Tax Skip that step and the ATO will add the 2% automatically.
Super and the 65% DASP Tax
On top of your wages, your employer must pay superannuation into a fund on your behalf. From 1 July 2025, the super guarantee rate is 12% of ordinary time earnings.7Australian Taxation Office. Super Guarantee That money is locked away in a super account while you’re working.
Once you’ve left Australia, your visa has expired or been cancelled, and you hold no other active Australian visa, you can claim the balance through a Departing Australia Superannuation Payment (DASP). The tax on that payment is 65% for anyone who has ever held a 417 or 462 visa, against 35% for other temporary visa holders.8Australian Taxation Office. Departing Australia Superannuation Payment (DASP) On a $4,000 balance, you’d receive roughly $1,400.
Apply through the ATO’s online DASP system or by paper form. Balances of $5,000 or more lodged on paper need a Certificate of Immigration Status from the Department of Home Affairs. Most claims are processed within 28 days.8Australian Taxation Office. Departing Australia Superannuation Payment (DASP) Don’t put it off indefinitely: unclaimed super eventually transfers to the ATO as lost super, and you’ll have an extra step to reclaim it.
Deductions That Reduce What You Owe
Working holiday makers can claim work-related deductions on the same basis as other taxpayers. Typical examples include protective clothing and sunscreen for farm work, tools for construction jobs, and travel between two workplaces on the same day (though not your normal commute).
To claim, you need a receipt or invoice showing the cost, the supplier, the nature of the expense, and the date. A bank statement on its own doesn’t qualify because it misses some of those details.9Australian Taxation Office. Records You Need to Keep Keep the records for five years after you lodge.10Australian Taxation Office. Overview of Record-Keeping Rules for Business
At the 15% rate, every $100 of valid deductions saves you $15 in tax. Not life-changing, but $500 spent on steel-cap boots and high-vis clothing translates to $75 back.
Do You Need to Lodge a Tax Return?
The Australian financial year runs 1 July to 30 June. Lodging yourself, without a registered tax agent, the deadline is 31 October.11Australian Taxation Office. Lodge Your Tax Return From Outside Australia Leaving Australia permanently before 30 June? You can lodge early instead of waiting for the new financial year.3Australian Taxation Office. Working Holiday Makers
You may not need to lodge at all if both apply: all your income came from WHM wages, and your total taxable income for the year was under $45,001.3Australian Taxation Office. Working Holiday Makers In that case, the tax withheld by a registered employer already matches what you owe. But if you have deductions, a Medicare levy exemption to claim, or bank interest to declare, lodge anyway. You could be owed a refund.
The free myTax system inside a linked myGov account is the standard route, and it works from outside Australia if you’ve already left.12Australian Taxation Office. Create a myGov Account and Link It to the ATO Any refund is paid into an Australian bank account you nominate, so keep that account open until it lands.