The Ultimate Guide: Tax Returns for Working Holiday Makers & Foreign Workers in Australia

You got it! Here’s your all-in-one, plain-English guide for working holiday makers and foreign workers doing their Aussie tax return. Grab a cuppa—this’ll cover everything you need to know, from visas and tax rates to common mistakes, deductions, and how to get your super back.

1. Who’s a Working Holiday Maker? What Visas Apply?

If you’re in Australia on a Working Holiday visa (subclass 417) or a Work and Holiday visa (subclass 462), you’re officially a “working holiday maker” (WHM) in the eyes of the ATO. These visas let you work and travel around Australia, usually for up to 12 months (sometimes longer if you do regional work).

Other foreign workers might be on student visas, skilled worker visas (like the 482 or 186), or other temporary visas. But for tax, the rules are different for WHMs compared to other foreign workers.

2. Tax Rates: How Much Do Working Holiday Makers Pay?

Here’s the big one—tax rates. WHMs are taxed differently to Aussie residents and other foreign workers.

• WHM Tax Rate:

  • 15% on the first $45,000 you earn
  • 32.5% from $45,001 to $120,000
  • 37% from $120,001 to $180,000
  • 45% over $180,000
  • No tax-free threshold. Every dollar is taxed.

• Other Foreign Workers:

  • If you’re a resident for tax purposes, you get the tax-free threshold ($18,200) and normal resident rates.
  • If you’re a non-resident, you pay 32.5% from the first dollar (no tax-free threshold).

Tax Treaties & Approved Countries:

If you’re from a country with a tax treaty (like the UK, Germany, Japan, and a bunch of others), you still pay the WHM rates, but you won’t get double-taxed on the same income back home. The ATO and your home country’s tax office swap info, so you’re covered.

3. Typical Occupations for Working Holiday Makers

You’ll find WHMs in all sorts of jobs, but the most common are:

• Hospitality (bars, cafes, restaurants)
• Farm work (fruit picking, packing, cattle stations)
• Construction and labouring
• Tourism (hotels, tour guides)
• Retail (shops, supermarkets)
• Office temping/admin

4. Typical Deductions for Working Holiday Makers

You can claim deductions for work-related expenses, just like anyone else. But you can’t claim everything—only what’s directly related to earning your income.

Common deductions:

• Work-related travel (if you travel between jobs or sites, not just to and from home)
• Uniforms and protective clothing (if required for your job)
• Tools and equipment (if you buy your own for work)
• Work-related phone and internet use
• Union fees or professional memberships
• Self-education (if it relates directly to your current job)

What you can’t claim:

• Everyday clothes (even if you wear them to work)
• Rent and food (unless you’re travelling overnight for work)
• Travel to and from your regular workplace

5. 10 FAQs for Working Holiday Makers

Q1: Do I need to lodge a tax return?
Yes, if you earned any income in Australia, you need to lodge a tax return—even if you were only here for a few months.

Q2: What if I worked cash-in-hand?
You still need to declare it. The ATO gets info from employers, banks, and even other countries, so don’t risk it.

Q3: Can I claim the tax-free threshold?
No, not as a WHM. Every dollar is taxed.

Q4: What if I worked for more than one employer?
No worries—just add up all your income and include it in your return.

Q5: What if I leave Australia before tax time?
You can lodge your tax return online from overseas. You don’t have to be in Australia.

Q6: How do I get my payment summary?
Most employers use Single Touch Payroll, so your income info is online in your myGov account.

Q7: Can I claim flights to Australia?
Nope, travel to start your working holiday isn’t deductible.

Q8: What about superannuation?
You can claim your super back when you leave Australia for good (see below).

Q9: What if I overpaid tax?
If you paid too much tax, you’ll get a refund after you lodge your return.

Q10: Do I need an Australian bank account?
It makes getting your refund easier, but you can use an overseas account (just check the fees).

6. What to Watch For: Common Mistakes

• Forgetting to include all income: The ATO gets info from employers, banks, and even overseas. If you leave something out, you’ll get a “please explain.”
• Claiming the tax-free threshold: WHMs can’t claim it. If you do, you’ll owe money back.
• Over-claiming deductions: Only claim what’s directly related to your work. The ATO checks.
• Not updating your address: If you move or leave Australia, update your details so you get your refund.
• Not keeping receipts: No receipt, no deduction. Keep them for five years.

7. What Foreign Workers Get Wrong

• Thinking you’re a resident for tax: Most WHMs are non-residents for tax, even if you stay a year. Only a few become residents (and it’s rare).
• Not lodging a return: Even if you only worked a few weeks, you need to lodge.
• Not claiming super: Many forget to claim their super when they leave. That’s your money!
• Not checking your payslips: Make sure your employer is paying the right tax and super. Dodgy bosses are out there.

8. Claiming Back Your Super When You Leave

When you leave Australia for good, you can claim your superannuation (retirement savings) back as a Departing Australia Superannuation Payment (DASP).

How to claim:

• Wait until you’ve left Australia and your visa has expired or been cancelled.
• Apply online through the ATO’s DASP portal.
• You’ll need your super fund details, passport, and visa info.

Heads up: The tax on your super payout is 65% for WHMs. Ouch, but it’s still better than leaving it behind.

9. Doing Your Tax Return When You’re Not in Australia

You don’t have to be in Australia to lodge your tax return. You can do it online from anywhere in the world using myGov and the ATO’s online services, or through a tax agent like GoTax.

What you need:

• Your Tax File Number (TFN)
• Access to myGov (set this up before you leave)
• Your income details (from your myGov account or employer)
• Bank account details for your refund

10. How Easy is GoTax?

GoTax is built for people who want tax done fast, simple, and with no stress. Here’s how it works:

• Answer a few easy questions (no jargon, no confusing forms)
• We’ll find every deduction you’re legally entitled to
• Lodge your return online, from anywhere in the world
• Get your refund paid straight into your bank account

No need to be a tax expert. We do the hard work, you get the refund.

11. Step-by-Step: How to Lodge Your Tax Return as a WHM

1. Get your paperwork sorted:

   • TFN
   • Income statements (from myGov or your employer)
   • Bank details
   • Receipts for deductions

2. Set up your Account with Gotax:

   • We'll link it to the ATO
   • Check your income is pre-filled

3. Complete your tax return:

   • Enter your income
   • Add deductions
   • Double-check your details

4. Lodge online or with GoTax:

   • If you use GoTax, we’ll walk you through it step by step

5. Wait for your refund:

   • Most refunds come in 2 weeks

12. Special Tips for Foreign Workers (Non-WHM)

If you’re not on a 417 or 462 visa, your tax situation might be different:

• You might be a resident for tax if you’re here long-term (over 6 months, settled, etc.)
• Residents get the tax-free threshold and lower rates
• Non-residents pay 32.5% from the first dollar
• Check your visa and how long you’ve been here to work out your status

13. What If You Have Foreign Income?

If you’re an Australian resident for tax, you need to declare any income you earn overseas. If you’re a WHM or non-resident, you only declare your Aussie income.

14. What If You Miss the Deadline?

Tax returns are due by 31 October each year. If you miss it, you can still lodge late, but you might cop a fine. If you use a Gotax agent, you get more time.

15. Final Checklist

• Have you included all your income?
• Only claimed legit deductions?
• Got your TFN and bank details handy?
• Kept your receipts?
• Checked your visa and tax status?

16. Quick Recap: Top 5 Things to Remember

1. WHMs pay 15% on the first $45,000—no tax-free threshold.
2. Lodge a tax return, even if you’ve left Australia.
3. Only claim deductions directly related to your work.
4. Claim your super when you leave (but expect a big tax hit).
5. Use GoTax for a simple, stress-free tax return.

Still got questions? Here’s a few more quick answers:

• Can I claim travel between jobs?
  Yes, if you’re moving between work sites or jobs (not just to and from home).

• What if my employer didn’t pay super?
  Report them to the ATO. You’re entitled to super if you earn over $450 a month.

• Can I get help in my language?
  The ATO has interpreters, or use a tax agent who speaks your language.

• What if I lost my TFN?
  You can recover it through myGov or by calling the ATO.

• Do I need to keep my payslips?
  Yes, for at least five years.

Wrap Up

Doing your tax return as a working holiday maker or foreign worker in Australia doesn’t have to be a headache. Know your visa, check your tax rate, claim only what you’re allowed, and don’t forget your super when you leave. If you want it done right (and easy), GoTax has your back.

Now, go enjoy the rest of your Aussie adventure—your tax is sorted!