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InternationalWorking holiday

Working Holiday Makers: How Your Tax Works

You’re taxed from your first dollar. How much depends on more than your visa.
By EMK Accounting & Taxation Services, Registered Tax Agent
Last reviewed: October 2026  ·  4 minute read
The quick answer
On a 417 or 462 visa, you are a working holiday maker for tax.
Tax comes out from your first dollar: 15% on the first $45,000 you earn, if your employer is registered for working holiday makers.
If your employer isn’t registered, more tax is taken out of your pay.
The harder part: your passport country, your residency and your employer can all change the result.

The rate is simple. Your situation isn’t.

Working holiday makers have their own tax rate. With an employer who is registered for working holiday makers, tax is withheld at 15% on the first $45,000 you earn, with higher rates above that.

If the employer isn’t registered, the ATO says:

“they must withhold tax from your pay using foreign resident tax rates”Australian Taxation Office, Working holiday makers

Those rates are higher. You only find out at tax time whether the amount taken from your pay was right.

Two backpackers, same job, different tax

Two people do the same work for the same pay. One finishes the year with nothing more to do. The other is owed a refund, or owes tax.

The difference comes down to their passport country, whether they count as a resident for tax, whether the employer was registered, and whether they also worked under an ABN.

Six questions that decide what you pay

QUESTION 1

Was your employer registered?

If not, too much tax may have come out of your pay.
QUESTION 2

Does your passport country change your rate?

For some countries it can, if you also count as a resident for tax.
QUESTION 3

Are you a resident for tax?

Most working holiday makers aren’t. Some are, and it changes the result.
QUESTION 4

Did you also work under an ABN?

Delivery, contracting or freelance work is taxed differently from wages.
QUESTION 5

Do you need to lodge a tax return?

Not everyone does. Some who don’t have to would still get money back.
QUESTION 6

What happens to your super?

You can claim it after you leave, but the tax on it is high.
There is no single answer to any of these. Each one depends on your own situation. Working them out is what we do every day.

What getting it wrong can cost

Too much tax taken out, and never claimed back.
A tax bill you didn’t expect, because income earned under an ABN had no tax taken out along the way.
Super left behind. Super you never claim stays in Australia.
Penalties and interest, if a tax return was needed and wasn’t lodged.

Does this sound like you?

I’m on a 417 or 462 visa.
My employer took out more than 15% in tax.
I had more than one employer.
I also worked under an ABN.
I’m leaving Australia soon.
I’ve already left and never lodged.
I’m not sure whether I need a tax return.

If even one of these is you, it’s worth a quick conversation. Sorting it out early is almost always easier than fixing it from the other side of the world.

Common questions

Do I need to lodge a tax return?

Not always. If all your income was wages as a working holiday maker and it was under the threshold, you may not have to. But if too much tax was taken out, lodging is how you get it back. We check which applies to you.

Can I get my super back when I leave?

Once you have left Australia and your visa has ended, you can apply for it. For working holiday makers the payment is taxed at 65%, so it helps to know what to expect.

I’ve already left Australia. Can you still help?

Yes. Everything can be done online from wherever you are.

How much does it cost?

It depends on your situation, so we give you the fee before any work starts. Asking for a quote costs nothing.

Want us to handle it?

Let EMK take care of your Australian tax

You enjoy the trip. We check how you were taxed and lodge what’s needed.
Get a Quote Takes a few minutes. No obligation.
We check how you were taxed, and whether it was right.
We work out whether you need to lodge, and what you may get back.
We prepare your tax return and lodge it with the ATO.
We explain your options for super when you leave.
You know the fee first, and nothing is lodged until you approve it.
Important: This article is general information only and is not personal tax advice. The right treatment depends on your own circumstances.
Sources: Australian Taxation Office, Working holiday makers, Returning to your home country.
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