How much tax do working holiday makers pay in Australia?

Working holiday makers on a 417 or 462 visa pay 15% on the first $45,000 of working holiday income for 2025-26. Income above $45,000 is taxed at the same rates as residents — 30%, then 37%, then 45% on the higher slices. There is no tax-free threshold on working holiday income.

Do backpackers get the tax-free threshold?

No. Unlike residents, working holiday makers do not get the $18,200 tax-free threshold on their working holiday income. The 15% rate applies from the very first dollar up to $45,000. This is the main reason backpackers pay tax on income a resident would not.

Will my employer withhold the right amount of tax?

Only if they are registered. An employer registered with the ATO as an employer of working holiday makers withholds at 15% up to $45,000. An unregistered employer must withhold at 30% from the first dollar. Always give your employer your tax file number and confirm they are registered, or too much tax may be taken.

Do working holiday makers have to lodge a tax return?

Generally yes, if you earned income and had tax withheld. Lodging is how you reconcile the tax withheld against what you actually owe — and how you claim any refund. You can lodge from 1 July after the income year, or lodge early if you are leaving Australia permanently.

Do backpackers get a tax refund?

Sometimes, but not always. A refund happens only if more tax was withheld than you owe — for example if an unregistered employer withheld at 30% when 15% applied. Because there is no tax-free threshold, working holiday makers get smaller refunds than residents on the same income, and some owe nothing either way.

Can I claim deductions as a working holiday maker?

Yes. Work-related expenses you incur to earn your income — uniforms or protective gear, tools, work-related travel between jobs, and similar — can be deductible, just as for residents. Keep receipts. Deductions reduce your taxable income and can increase a refund or reduce tax owed.

What happens to my superannuation when I leave Australia?

While you work, your employer pays super for you. When you leave Australia permanently and your visa has ceased, you can claim it back as a Departing Australia Superannuation Payment (DASP). Be aware that DASP for working holiday makers is taxed at a high rate (currently 65%) before it is paid out.

Am I a resident or non-resident for tax as a backpacker?

Most working holiday makers are taxed under the working holiday maker rates regardless of residency. However, some people from certain countries with a non-discrimination clause in their tax treaty, who are also Australian residents for tax purposes, may be taxed on resident terms. It is a complex area — if it might apply to you, get advice.

Working Holiday Maker (Backpacker) Tax in Australia 2025-26

On a 417 or 462 visa and earning money in Australia? Backpacker tax works differently from the resident system. Here is exactly what you pay for 2025-26, why your refund may be smaller than friends', and how to get your super back when you leave.

Quick answer

Working holiday makers (417/462 visas) pay 15% on the first $45,000 of working-holiday income, then resident rates above that. There is no tax-free threshold. Make sure your employer is registered (so they withhold 15%, not 30%), and you can reclaim your super when you leave Australia.

How working holiday maker tax works

If you hold a subclass 417 (Working Holiday) or 462 (Work and Holiday) visa, your Australian income is taxed under the special working holiday maker scale, not the ordinary resident rates. For 2025-26 it works like this:

Working holiday income	Tax rate
$0 – $45,000	15%
$45,001 – $135,000	30%
$135,001 – $190,000	37%
$190,001+	45%

The big difference from residents: there is no $18,200 tax-free threshold. The 15% applies from your very first dollar. On $45,000 of income, that is $6,750 of tax.

Registered vs unregistered employers

Whether the right tax comes out of your pay depends on your employer:

Registered employer: withholds at 15% up to $45,000. This is correct, and you should land close to even at tax time.
Unregistered employer: must withhold at 30% from the first dollar. Too much is taken, and you would claim the difference back by lodging a return.

Always provide your tax file number (TFN). Without it, tax is withheld at the very top rate.

Do you get a refund?

A refund only happens when more tax was withheld than you owe. Because there is no tax-free threshold, working holiday makers generally get smaller refunds than residents on the same income. The most common reason a backpacker gets a decent refund is an unregistered employer withholding 30% when only 15% applied. Claiming deductions for work expenses can also increase a refund.

Claiming deductions

You can claim the same kinds of work-related deductions as residents — uniforms and protective clothing, tools, and work travel between jobs, for example. Keep your receipts and only claim the work-related portion. Deductions lower your taxable income and can put money back in your pocket.

Getting your super back when you leave

While you work, your employer pays superannuation on top of your wages. When you leave Australia permanently and your visa has ceased, you can claim that super as a Departing Australia Superannuation Payment (DASP).

Important: for working holiday makers, the DASP is taxed at a high rate — currently 65% — before it is paid out. It is still worth claiming what remains, but do not count on receiving the full balance.

Lodging your return

If you earned income and had tax withheld, you generally need to lodge a tax return. You can lodge from 1 July after the income year, or lodge an early return if you are leaving Australia permanently before then. Keep your income statements and any receipts, and check your details against what your employers reported.

Frequently asked questions

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Related guides

This guide is general information only and not personal tax advice. Always confirm with the ATO at ato.gov.au or a registered tax agent before lodging.

All tax guides