Working Holiday Maker Tax Rates (2025-26)

If you are in Australia on a Working Holiday Maker visa, tax works differently from the standard resident tax system. For the 2025–26 financial year, the Working Holiday Maker (WHM) tax rate applies to people on certain visa subclasses who do not hold Australian residency for tax purposes. The WHM rates are designed to tax casual and short-term working holiday income at a flat, concessional rate from the first dollar, provided your employer correctly treats you as a WHM and you are registered with the ATO through your Tax File Number declaration. For most people on visa subclasses 417 and 462, the key point is that your tax rate is not the same as an Australian resident’s, and your pay slips can look quite different depending on whether you are correctly flagged as a WHM.

For 2025–26, WHM income up to $45,000 is taxed at 15%. Income from $45,001 to $135,000 is taxed at 30% on the amount over $45,000, income from $135,001 to $190,000 is taxed at 37%, and income over $190,000 is taxed at 45%. Medicare levy is not generally payable by WHM workers in the same way it is for Australian residents, which is one reason the WHM system is usually simpler. In practice, if you earn under $45,000 for the year, your tax is 15 cents for each dollar earned. Once you move above that threshold, the higher rates apply only to the portion above each bracket, not your full income. Employers should withhold tax using the WHM rates once you tell them you are a WHM and they are satisfied you are eligible.

It helps to compare WHM tax with resident and non-resident rates. Australian residents for tax purposes have a tax-free threshold of $18,200, then progressive rates apply, with the 16% rate applying on income above that threshold for 2025–26. Non-residents do not get the tax-free threshold and are generally taxed from the first dollar at higher rates than residents. WHM rates sit somewhere in between: you pay tax from the first dollar, but the first bracket is a flat 15% rather than the higher resident marginal rates. This means WHM status can be favourable for people earning casual income, but it is not always the cheapest outcome if you later become an Australian tax resident or if your facts mean you should be treated as a resident for tax purposes. Your tax residency status is a separate test from your visa status, and it can materially change your final tax bill.

A simple example shows the effect on take-home pay. If you earn $30,000 as a WHM in 2025–26, tax at 15% is $4,500, leaving about $25,500 before any HELP debts or other deductions. If you earn $50,000, tax is $6,750, made up of 15% on the first $45,000, then 30% on the $5,000 above that threshold. That leaves about $43,250 before any deductions. At $100,000, tax is $20,250 under the WHM rules, because you pay 15% on the first $45,000 and 30% on the next $55,000. These examples are useful for budgeting, but your final result can change if you have deductions, multiple jobs, tips, allowances, salary sacrificed super, or if your employer has withheld at the wrong rate.

When it comes time to lodge your tax return, make sure your income statement or payment summary is correct and that you answer the residency and visa questions accurately in myTax or through a registered tax agent. Your employer should have withheld tax under the WHM rules if you gave them the right information, but if they withheld as though you were a resident or non-resident, your tax outcome may be wrong and a refund or balance due could follow. You can generally claim deductions for work-related expenses if they meet the ATO rules, such as being directly related to earning your income and you have records. Keep receipts, payslips and bank statements, especially if you had casual jobs, travel between work sites, uniforms, or tools.

If you are eligible to claim your superannuation back, this is separate from your income tax return. WHM workers can usually apply to the ATO for a Departing Australia superannuation payment (DASP) after they leave Australia and their visa has ceased. The taxable component of your DASP is generally taxed at special rates, and super funds will not normally release the money until the ATO authorises the payment. This is often one of the biggest refunds available to departing WHM workers, so it is worth checking your eligibility and making sure your fund details are correct before you leave. If you are unsure whether you are a WHM for tax, a resident for tax, or what your employer should have withheld, contact SolAeon Tax for tailored advice.