What are the tax rates for working holiday makers in Australia for 2024-25?
Working holiday makers (holders of subclass 417 or 462 visas) are subject to a special tax rate in Australia, separate from both resident and non-resident rates. Employers who hire working holiday makers must be registered with the ATO as a working holiday maker employer to withhold at the correct rate.
2024-25 tax rates for working holiday makers:
| Taxable Income | Tax Rate |
|---|---|
| A$0 - A$45,000 | 15% |
| A$45,001 - A$135,000 | A$6,750 plus 32.5 cents per dollar over A$45,000 |
| A$135,001 - A$190,000 | A$36,000 plus 37 cents per dollar over A$135,000 |
| A$190,001 and over | A$56,350 plus 45 cents per dollar over A$190,000 |
The 15% flat rate on the first A$45,000 is notably higher than the 0% rate Australian residents enjoy on the first A$18,200. Working holiday makers do not receive the tax-free threshold.
Medicare levy: Working holiday makers are generally exempt from the Medicare levy because they are not entitled to Medicare benefits under Australian reciprocal health care agreements (with some country exceptions).
Super entitlements: Working holiday makers are entitled to receive Superannuation Guarantee contributions from their employer. When they permanently leave Australia, they can apply to have their super paid out as a Departing Australia Superannuation Payment (DASP), which is taxed at 65% for working holiday makers (due to a specific DASP tax rate for this visa category).
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