Working holiday makers
If you work in Australia, tax will be withheld from your pay and you’ll be obligated to lodge a tax return each year.
The Australian income year starts 1 July and ends on 30 June the following year.
From 1 January 2017 – as a working holiday maker – the first $37,000 of your income is taxed at 15%, with the balance taxed at ordinary rates.
You are a working holiday maker if you have a visa subclass:
- 417 (Working Holiday)
- 462 (Work and Holiday).
When you lodge a tax return, we will work out how much tax you should have paid. If you paid too much, we will give you a refund. If you have not paid enough, we will send you a bill.
As a working holiday maker your employer also has to pay super for you if you are eligible. When you leave Australia you can apply to have your super paid to you as a Departing Australia Superannuation Payment (DASP). The tax on any DASP made to working holiday makers on or after 1 July 2017 is 65%.
Applying 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.
Starting work – TFN declaration
When you start work, you give your employer a TFN declaration. This tells the employer everything they need to know to work out how much tax to withhold from your pay.
Your employer will check if you have a visa subclass 417 (Working Holiday) or 462 (Work and Holiday), but you should tell them anyway to ensure they tax you correctly.
Only employers of working holiday makers are required to register with us as employers of working holiday makers. Working holiday makers do not register.
If your employer is registered with us they will withhold tax from your pay at 15% on the first $37,000 of income.
If your employer is not registered with us as an employer of working holiday makers they must withhold tax from your pay using foreign resident tax rates. Foreign resident tax rates start at 32.5%.