Are You a Working Holiday Maker or Foreign Worker? Here’s What You Need to Know About Aussie Tax

Thinking of working your way around Australia or already have? Whether you're a barista in Bondi, a fruit picker in Far North Queensland, or knee-deep in sheep poo in WA, there’s one thing you can’t dodge (besides a kangaroo on the highway): tax. Yep, even backpackers get caught in the ATO net.

So, let’s get you sorted.

Who’s a Working Holiday Maker?

If you’re in Australia on a Working Holiday visa (subclass 417) or a Work and Holiday visa (subclass 462), congrats! You’re officially a Working Holiday Maker (WHM) according to the ATO. These visas let you work and travel your way around Australia for 12 months (with options to extend).

But here’s where it gets spicy: not all foreign workers are WHMs. If you’re on a student visa, skilled visa (like 482 or 186), or something else, your tax rules are different. WHMs have their own little tax playbook.

What Tax Rates Apply?

If you're a WHM:

• 15% tax on your first $45,000 of income

• 32.5% tax from $45,001 to $120,000

• 37% tax from $120,001 to $180,000

• 45% tax on anything above that

• No tax-free threshold — every dollar gets taxed

If you're not a WHM, things depend on whether you’re a resident for tax purposes:

• Residents get the $18,200 tax-free threshold and lower rates

• Non-residents pay 32.5% from dollar one — no freebies

Resident or Non-Resident?

Just because you lived here for a few months and learned to pronounce "Woolloomooloo" doesn’t mean you’re a tax resident. Most WHMs are non-residents, especially if you move around. Some foreign workers who stay long-term (6+ months, settle in one spot, work full-time) may qualify as residents, but it’s rare.

When in doubt, use the ATO’s residency tool or ask the legends at GoTax.

Common Jobs for WHMs & Backpackers

We’ve seen WHMs doing everything from juggling at festivals to mining in Kalgoorlie, but the classics are:

• Hospitality: Cafes, restaurants, bars

• Farming & agriculture: Fruit picking, packing, cattle work

• Construction & labouring

• Retail & supermarkets

• Tourism & travel

• Office temping

Each comes with its own quirks and possible tax deductions. That’s where GoTax shines — our system matches your job to likely tax deductions.

How Does Superannuation Work for WHMs?

If you earn over $450/month, your employer has to pay superannuation (that’s retirement savings) into a fund on your behalf. You won’t see it in your pay, but it’s real money sitting there.

When you permanently leave Australia, you can claim your super back via a Departing Australia Superannuation Payment (DASP). Just prepare yourself: the ATO taxes this payout at 65% for WHMs. Brutal, but better than leaving it behind.

Final Tip: GoTax is WHM Friendly

We built GoTax to be your kind of system. No tax lingo. No paper forms. Just straight-up questions, online access, and a team that knows WHMs inside-out. Whether you’re in Oz or back home sipping sangria in Spain, we’ll get your return sorted. 

Have a look now

Signup to GoTax and not only get your Tax return done, you can also ask as many questions as you like and get informed answers. You have access to the equivalent of a Tax Einstein — that is our very own D.e.r.e.k as well as the best credentialed Tax Accountants around.

Read more Crazy Tax Questions at: https://www.gotax.com.au/crazy-tax-answers

Disclaimer: Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.