Backpacker tax rates, refunds, super and deadlines — what every 417 and 462 visa holder needs to know before lodging.
If you’ve worked in Australia on a 417 or 462 visa, getting your working holiday visa tax return right is the difference between claiming the refund you’re owed and either leaving money behind or copping an unexpected bill. Working holiday makers are taxed under their own set of rules, and they catch a lot of backpackers out.
This guide walks through the backpacker tax rate in Australia, whether you’re a resident or foreign resident for tax, what you can claim, what happens to your super when you leave, and how to lodge — all current as at the 2025–26 financial year. Tax rules for visa holders continue to evolve, so it’s worth reading this alongside the FY26 tax changes.
Written by the Tax NextGen Advisory Team
Registered Tax Agent No. 25664246 • 20+ years’ experience in Australian tax • Specialists in tax returns for working holiday makers, visa holders and temporary residents. This article reflects ATO guidance as at the 2025–26 financial year. Not sure where you stand? Contact our team.
1. Who counts as a “working holiday maker”?
You’re a working holiday maker (WHM) in the eyes of the ATO if you hold either a Subclass 417 (Working Holiday) or Subclass 462 (Work and Holiday) visa. This is the group the special “backpacker tax” rules were built for.
If you’re on a different visa — a 485 graduate visa, a student visa or another temporary visa — these backpacker rates don’t apply to you, and your tax works differently. Our guide to the 485 and other temporary visas covers those situations.
2. The backpacker tax rate in Australia for 2025–26
Here’s the single most important thing to understand: as a working holiday maker you don’t get the $18,200 tax-free threshold that residents receive. Tax applies from your very first dollar. The backpacker tax rates for 2025–26 are:
| Taxable income (WHM) | Tax rate |
|---|---|
| $0 – $45,000 | 15% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001 and over | 45% |
Worked example
Say you earned $35,000 fruit-picking and in hospitality on a 417 visa. At the 15% backpacker rate that’s about $5,250 in tax for the year. Claim $1,000 of genuine work deductions and your taxable income drops to $34,000 — saving you around $150. Deductions are worth 15c in the dollar to you, so they still count.
Check your employer is registered. Employers who hire working holiday makers must register with the ATO to withhold at the 15% rate. If yours isn’t registered, they must withhold at foreign-resident rates — 30% from the first dollar. If that happened to you, lodging your return is how you claim the overpaid tax back. And with no Tax File Number, tax is withheld at the top rate of 45%.
3. Are you a resident or foreign resident for tax?
This is separate from your visa or migration status — it’s about your circumstances while you’re here. Most backpackers move around, work several short jobs and don’t settle in one place, so they’re usually treated as foreign residents for tax purposes. If you put down roots in one town and one job, you might be a resident. Our tax residency guide explains the ATO’s tests, and if your visa changed mid-year, see how a change in visa status affects your return.
There’s one important exception that can put money back in your pocket:
Case in point: Addy v Commissioner of Taxation [2021] HCA 34
The High Court found the backpacker tax couldn’t be applied to a British working holiday maker who was an Australian tax resident, because Australia’s tax treaty with the UK contains a non-discrimination clause. In our experience this can matter a great deal: if you are both a tax resident and a national of the UK, Germany, Finland, Chile, Japan, Norway, Turkey or Israel, you may be entitled to ordinary resident rates — including the tax-free threshold — rather than the backpacker rate. It’s worth having this checked.
4. When and how to lodge your working holiday visa tax return
The Australian financial year runs 1 July to 30 June. If you earned income during that period, you generally need to lodge a working holiday visa tax return. Key timing points:
- The standard deadline is 31 October if you lodge yourself; lodging through a registered tax agent usually gives you longer.
- Leaving Australia for good before 30 June? You can often lodge an early tax return for the part-year rather than waiting.
- Keep your income statements, your final payslips and your bank details — your refund is paid to an Australian or, in some cases, an overseas bank account.
New to the Australian tax system?
Download our free Visa Holders’ Guide — a plain-English walkthrough of tax, super and refunds for people working in Australia on a temporary visa.
Get the Free Guide5. Deductions backpackers can claim
Even on the flat 15% rate, deductions reduce what you owe. If you spent your own money on something directly related to earning your income and kept a record, you can generally claim it:
- Protective gear and occupation-specific clothing — steel-cap boots, hi-vis, gloves, sun protection for outdoor and farm work
- Tools and equipment you bought for the job
- Travel between jobs or work sites on the same day (not your normal trip from home to work)
- The work-related portion of your phone if you use it to coordinate shifts
If you also did any contract or gig work under an ABN, that income is reported differently — see reporting salary, ABN and side-hustle income correctly.
6. Your superannuation — and the DASP when you leave
Your employer must pay super on top of your wages (the super guarantee is 12% from 1 July 2025). When you leave Australia permanently and your visa has ceased, you can claim that super back through a Departing Australia Superannuation Payment (DASP).
Expect a big tax hit on your DASP. For working holiday makers, the DASP is taxed at 65% on the taxable component. It’s still worth claiming what’s left — just don’t count on the full balance. You claim it after you’ve departed and your visa is no longer active.
7. The Medicare levy: are you exempt?
The 2% Medicare levy funds Australia’s public health system — and as a foreign resident who isn’t entitled to Medicare, you generally don’t have to pay it. To claim the exemption you may need a Medicare Entitlement Statement showing you weren’t eligible for Medicare during the year. Our guide to the Medicare levy and private health cover for visa holders explains how this works.
8. Common mistakes that cost backpackers money
We regularly help working holiday makers fix these avoidable errors:
✗ Not lodging at all after leaving Australia — and forfeiting a refund they were owed.
✗ Assuming the 15% rate is always correct — residents from treaty countries may be entitled to less.
✗ Missing deductions because they didn’t keep receipts for boots, gear and between-job travel.
Getting your working holiday visa tax return checked by a registered agent is the surest way to claim everything you’re entitled to and lodge with confidence, even from overseas.
Key Takeaways
- Working holiday makers (417 & 462 visas) are taxed from the first dollar — no $18,200 tax-free threshold.
- The 2025–26 backpacker tax rate is 15% up to $45,000, then ordinary rates apply.
- Check your employer is ATO-registered; unregistered means 30% withheld, and no TFN means 45%.
- Tax residents from 8 treaty countries may be entitled to resident rates (the Addy decision).
- You can still claim work deductions, and you’re usually exempt from the 2% Medicare levy.
- Your DASP super refund is taxed at 65% — claim it once you’ve left and your visa has ceased.
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This article provides general information only and does not constitute personal tax, financial or legal advice. It reflects our understanding of ATO guidance as at the 2025–26 financial year; tax rules for visa holders continue to evolve and may be subject to legislation. Your position depends on your individual circumstances, including your residency and nationality. You should seek advice tailored to your situation before acting. Tax NextGen — Registered Tax Agent No. 25664246.
