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English-speaking WHMs
Concerns for English-Speaking Backpackers
ALITAX · Bilal Jivraj — Registered Tax Agent 25287564. Original guidance from 10+ years of DASP and tax casework.
⚠️ Did you change visa after your Working Holiday?
If you moved from a 417/462 Working Holiday visa to a student, 482 or partner visa and kept using the same super fund, your entire super payment can be taxed at 65% — not just the Working Holiday part. At ALITAX we see this cost people thousands. Read the 65% super trap chapter →
Working holiday makers from Canada, the US, the UK, Ireland and other English-speaking countries face their own set of issues — often different from PALM or sponsored workers.
Common issues
- Don’t know much about Australian taxes or the DASP system
- Don’t understand residency — and how it affects their tax rate and threshold
- Health cover confusion: which countries have reciprocal health agreements (RHCA) giving Medicare access, and which do not — this determines the Medicare levy exemption
- Change of visa from working holiday to sponsor or student, which changes both the tax rate and the DASP rate (from 65% down to 35%)
- Signing agreements without clarity on how much the agent is charging, what the refund will be, or what residency status is being applied — just going with whoever promises an “express refund”
- Relying on friends’ refunds as a guide for their own, which is misleading
How we help backpackers
We explain the WHM tax rules clearly, check your residency, apply the correct rate, and show you exactly what you get before anything is lodged. NDA-country nationals may qualify for resident rates — see the NDA Country Working Holiday chapter. Check your deductions at deductions.alitax.com.au.