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Tax Rules for Working Holiday Makers

Updated: Nov 15, 2018

The working holiday maker program allows young adults from 18 to 30 from eligible partner countries to work in Australia while having an extended holiday. You are a working holiday maker if you have a one of the following visa subclass:

- 417 (Working Holiday)

- 462 (Work and Holiday)

If you work in Australia tax is required to be withheld from your pay and a tax return will need to be lodged. The Australian income year starts on 1st July and ends on 30th June the following year.

To be able to work in Australia you will need a tax file number (TFN).

Once you start work your employer should check if you have a visa subclass 417 or 462, but just to make sure you should advise them as well. The employer should then register with the ATO as an ‘employer of working holiday makers’ and your employer will then withhold 15% of tax on the first $37,000 on income you earn, any amounts earned above this will get taxed at ordinary tax rates.

Employers are required to make super contributions for working holiday makers, after you leave Australia you can apply for the Departing Australia Superannuation Payments (DASP). Under this scheme you will be paid out your superannuation benefit after 65% of tax is paid. However there are requirements which must be meet to claim the DASP.

- You accumulated superannuation while working in Australia on a temporary resident visa issued under the Migration Act 1958 (excluding subclasses 405 and 410)

- Your visa has ceased to be in effect

- You have left Australia

- You are not an Australian or New Zealand citizen, or a permanent resident of Australia.

If you have any questions or concerns about working holiday makers or departing Australia superannuation payments please contact our team at Melbourne Tax Advisory on 1300 942 230.


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