Backpacker Tax

What is the tax rate for backpackers?

The income tax rate for working holiday visa holders is as follows:

  • 15% on earnings up to $37,000
  • 32.5% on earnings from $37,001 to $90,000
  • 37% on earnings from $90,001 to $180,000
  • 45% on earnings over $180,000 (if you somehow manage to get there. Congratulations if you have, but I’ve got just a couple of questions…)

Can I claim my super back when on a working holiday visa?

You are able to be paid out on your superannuation when your working holiday visa expires and you’ve left the country. Be aware that this payout will be taxed at a rate of 65%.

What is the tax year for Australia?

The Australian financial year runs from the 1st of July to the 30th of June (of the next calendar year.)

How much tax do you pay on a WHV?

Once you have been approved for your working holiday visa you’ll be subject to Australia’s income tax laws, and will pay tax on earnings at the rates listed above. The only other tax you’re likely to pay is the goods and services tax (GST), which is built into the price of products (so you won’t even notice it!)

Do you get your tax back when you leave Australia?

While Australian residents will only be able to complete their tax returns at the end of the financial year (July-Oct), 417 and 462 visa holders may be eligible to submit their return earlier if they are leaving the country outside of the normal tax return period.

Are backpackers Australian residents for tax purposes?

Unless you meet certain criteria, including working with the same employer for six months or longer (which can only be done in special circumstances if you’re 417 or 462 visa holder), you will not be treated as an Australian resident for tax purposes.

How do I calculate my tax refund?

There are a number of tax calculator tools available online. We suggest trying the backpacker tax refund calculator at Backpacker Job Board.

Can a working holidaymaker claim the tax free threshold?

Because most working holidaymakers are not considered Australian residents for tax purposes, they are unable to claim the tax free threshold, and must pay tax on every dollar earned, starting at a rate of 15%.

What is the deadline for completing my backpacker tax return?

The Australian financial year ends on the 30th of June, and if you’ve worked in the 12 months prior to that date your tax return must be completed and lodged by October 31st.

While you’re not actually obliged to complete a tax return if you earned under $37,000 as a working holidaymaker, failing to do so could see you waving goodbye to thousands of dollars in overpaid tax.