Backpacker / Working Holiday Tax Return

ALITAX · Bilal Jivraj — Registered Tax Agent 25287564. Original guidance from 10+ years of DASP and tax casework.

If you held a 417 (Working Holiday) or 462 (Work and Holiday) visa, your tax return works differently. Here is when you need to lodge, and what you are entitled to.

Income under $45,000 and tax withheld at 15%

If your total income was under $45,000 and your employer withheld tax at the flat 15% WHM rate, you generally do not need to lodge a tax return unless you have specific deductions to claim that would bring your tax below what was withheld.

Income over $45,000

If your income exceeded $45,000, you must lodge. Above $45,000, the rate jumps to 30% on the excess — the same marginal rate as Australian residents. Your employer should have withheld at the higher rate above $45,000, but if they did not, you may owe the difference.

Deductions for backpackers

Working holiday makers are entitled to the same work-related deductions as Australian residents — uniforms you paid for, tools, work-related travel between jobs, and more. The rules are the same: you must have actually spent the money, it must be work-related, and you need receipts.

NDA-country backpackers — resident rates

If you are from a non-discrimination-article (NDA) country and you are a resident for tax purposes, you may be entitled to the resident rate table instead of the WHM table — including the $18,200 tax-free threshold. On $35,000 income, that changes your tax from $5,250 (WHM) to roughly $2,688 (resident). See the NDA Country Working Holiday and Tax Residency Tests chapters.