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How are Working Holiday Makers (WHM’s) taxed!

Working holiday makers (WHM’s) may be taxed on the same basis as a resident Australian national if they are both:

-from a non-discrimination article (NDA) country

-an Australian resident for tax purposes.

Criteria for same tax rate

You may be taxed on the same basis as a resident Australian national if you satisfy all the following – you are:

-the holder of a Working Holiday (subclass 417) visa or Work and Holiday (subclass 462) visa

-a resident of Australia for tax purposes for the whole or part of the income year

-from one of the following NDA countries;    

  • Chile
  • Finland
  • Germany (for 2017–18 and future income years)
  • Israel (for 2020–21 and future income years)
  • Japan
  • Norway
  • Turkey
  • United Kingdom.

A resident Australian national is a person who is both, (i)a resident of Australia for tax purposes & (ii)a permanent resident of Australia or an Australian citizen.

Tax withheld by your employer

If you’re a WHM, and your employer is registered with us as a WHM employer, they will withhold tax at a rate of 15% for the first:

  • $37,000 you earn during 2019–20 and earlier income years
  • $45,000 you earn during 2020–21 and later income years.

Higher rates of withholding will apply above these thresholds. For more information, see tax table for working holiday makers.

You can get more information and specific to your situation by contacting us or calling on 0420 432 410.

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