What is a working holiday maker and how are they taxed in Australia 2026?
A Working Holiday Maker (WHM) is a visitor to Australia on a 417 or 462 visa. For 2026, they are taxed at 15% on income up to $45,000, with no tax-free threshold. Higher rates apply for income above this amount.
Was this helpful?
12 readers found this helpful
12 readers found this helpful
How it works in practice
Who is a Working Holiday Maker? An individual holding a Working Holiday (subclass 417) or Work and Holiday (subclass 462) visa is generally considered a Working Holiday Maker (WHM) for tax purposes in Australia. These visas allow young people to have an extended holiday and earn money through short-term employment to fund their travels. ### Tax Rates for WHMs For the 2026 income year, a specific tax rate applies to Working Holiday Makers. They pay 15 cents for every dollar earned up to $45,000. Income above this threshold is taxed at non-resident rates, which are higher. Importantly, WHMs do not have access to the tax-free threshold that Australian residents enjoy. This means tax is deducted from the first dollar they earn. ### Superannuation and WHMs Working Holiday Makers are also generally entitled to superannuation contributions from their employers, similar to other employees, if they meet eligibility criteria (e.g., earning over $450 in a calendar month). However, they can apply to have their superannuation paid out when they leave Australia, subject to a specific tax rate, which is higher than for Australian residents.
Important exceptions
The special 15% tax rate only applies if the employer is registered with the ATO as a Working Holiday Maker employer. If your employer is not registered, you may be taxed at non-resident rates from your first dollar, which are significantly higher. You could also be considered an Australian resident for tax purposes if you meet residency tests, which would change your tax obligations and eligibility for the tax-free threshold.
What you should do now
-
Apply for a Tax File Number (TFN) as soon as possible after arriving in Australia to avoid higher tax rates.
-
Ensure your employer is registered as a Working Holiday Maker employer with the ATO; if not, encourage them to register or discuss the implications.
-
Keep detailed records of all your income, employers, and any work-related expenses throughout your stay in Australia.
-
Lodge an annual tax return with the ATO after the end of each financial year (30 June) to ensure you pay the correct amount of tax and receive any eligible refunds.
-
If leaving Australia permanently, consider applying for your superannuation payout, also known as a Departing Australia Superannuation Payment (DASP).
Expert Notes
No expert notes have been added to this question yet.
People also asked
Explore highly relevant questions and get instant verified short answers.