Working Holiday Maker tax and super: 417 and 462 visa rules
How working holiday makers on 417 and 462 visas are taxed in Australia, plus super entitlements and the Departing Australia Superannuation Payment.
Who is a Working Holiday Maker
Working Holiday Makers (WHMs) are individuals who hold either a subclass 417 (Working Holiday) or a subclass 462 (Work and Holiday) visa. These visas allow eligible individuals to undertake temporary work in Australia.
For tax purposes, WHMs are subject to specific PAYG withholding tax tables. This applies regardless of whether they are considered Australian residents for tax purposes.
Employers engaging WHMs must register with the Australian Taxation Office (ATO) as a working holiday maker employer before they can apply the WHM tax rates. If an employer is not registered, they are required to withhold tax at foreign resident rates.
WHM tax rates (current bands)
Working Holiday Makers (WHMs) are subject to Australian income tax, but do not receive the same tax-free threshold as Australian residents. This means tax is payable on income from the very first dollar earned.
The tax rates applicable to WHMs are tiered, based on income levels. Income between $0 and $45,000 is taxed at 15%.
Income exceeding these thresholds is taxed at progressively higher rates. Income from $45,001 to $135,000 is taxed at 30%, income from $135,001 to $190,000 is taxed at 37%, and income above $190,000 is taxed at 45%.
Superannuation for WHMs
Working Holiday Makers (WHMs) holding a 417 or 462 visa are entitled to the superannuation guarantee (SG) on their ordinary time earnings. This means employers must make superannuation contributions on behalf of eligible WHMs, just as they would for any other eligible employee. The superannuation guarantee rate is the prevailing rate at the time.
Employers are required to pay these super contributions to the WHM’s nominated superannuation fund, adhering to the standard superannuation guarantee payment schedule. From 1 July 2026, this schedule will move to Payday Super timing. The WHM’s visa status does not affect these obligations; employers are not exempt from paying superannuation.
If a WHM does not nominate a superannuation fund, the employer must follow the stapled super fund rules to ensure contributions are made to an existing superannuation fund.
Departing Australia Superannuation Payment (DASP)
Working Holiday Makers (WHMs) may be eligible for a Departing Australia Superannuation Payment (DASP) when they leave Australia. To be eligible, their visa must expire or be cancelled.
The DASP scheme allows WHMs to claim their accumulated superannuation. Amounts attributable to WHM employment are taxed at 65% when released.
Applications for DASP are made through the Australian Taxation Office (ATO) online DASP application system. Superannuation funds will release the balance once the ATO confirms the applicant’s eligibility.
Frequently asked
Do I need to register as a WHM employer with the ATO?
Yes. To withhold tax at the lower 15% WHM rate, you must register as an employer of working holiday makers with the ATO. If you do not register, you must withhold at the foreign resident rate (32.5% from the first dollar).
Do WHMs get the Medicare levy?
Generally no. WHMs are usually not eligible for Medicare and so are not subject to the 2% Medicare levy, but they should obtain a Medicare entitlement statement from Services Australia to claim the exemption in their tax return.