On a 417 or 462 visa, your Australian-source income is taxed at 15% up to A$45,000, with no tax-free threshold. The tax year runs from 1 July to 30 June, and the return is due on the following 31 October. For 2025-26 it was 31 October 2026, and for 2026-27 it would be 31 October 2027.
This guide is general information, not tax advice. It covers Australia only: your own country may have its own rules.
What rates apply?
They are those of the Income Tax Rates Act 1986, Schedule 7, Part III, in its compilation of 1 July 2026. They apply for 2024-25 and later years:
| Working holiday maker income | Rate |
|---|---|
| Up to A$45,000 | 15% |
| A$45,001 to A$135,000 | 30% |
| A$135,001 to A$190,000 | 37% |
| Over A$190,000 | 45% |
Each rate affects only its own band. For example, with A$50,000 it would be A$6,750 on the first A$45,000 and A$1,500 on the other A$5,000: A$8,250 in total. PwC and Etax give the same figures in essence.
Tax residents on other visas have a first band at zero up to A$18,200. In this table, they do not.
Who and what income does it apply to?
According to the same law:
- People: holders of a 417 or 462 visa, of certain bridging visas linked to them and of the 408 COVID-19 event visa.
- Income: Australian-source income earned while you hold that visa, minus related deductible expenses. It does not include certain superannuation or employment termination payments.
The law applies this table to both tax residents and non-residents. Residency depends on the facts of each case, not on nationality. According to PwC, broadly, temporary residents are not taxed in Australia on their foreign income.
Does it depend on my country?
It may. An H&R Block article from July 2020 says the special rate does not apply to someone who is a tax resident of Australia and comes from a country whose tax treaty includes a non-discrimination clause. It cites Germany, Chile, Finland, Israel, Japan, Norway, the United Kingdom and Turkey. Australian law does not include that list, and we have not been able to check it with the ATO. If that is your case, the source to consult is the ATO itself.
Do I have to lodge a return?
It depends on your income. According to H&R Block, no return or non-lodgement advice is needed if your employer withheld correctly and both of these conditions apply:
- All your income was wages earned on that visa.
- Your taxable income for the year was under A$45,001.
The article is from 2020 and we have not been able to confirm it with the ATO. Other income, such as interest or work with an ABN, would fall outside that case.
What does my employer have to do?
According to H&R Block, they must register with the ATO as a working holiday maker employer before the first payment, in order to withhold 15%. The same article says the worker tells them they hold a 417 or 462 visa, and that there may be penalties for not registering. We have not been able to confirm what withholding applies if the employer is not registered.
How do you lodge, and what if I am late?
- How: yourself or through a registered tax agent. Tourism Australia links to the ATO information on tax returns.
- With a registered tax agent: Etax says the deadline can usually be extended to 15 May of the following year. It requires you to sign up before 31 October, have no debts and be up to date with earlier years.
- Late penalties: Etax gives A$364 (up to 28 days) to A$1,820 (113 days or more), and there may be interest. These are figures from a company, not the ATO.
- If you leave before 30 June: H&R Block says you can lodge early, using the income statements from each employer.
Is Medicare Levy paid? What about interest?
H&R Block says working holiday makers are usually non-residents for tax purposes, exempt from the 2% Medicare Levy, and that their bank interest is taxed at 10%. PwC confirms that the 2% is for residents. If you do not give the bank your TFN, withholding may be higher.
What about my retirement savings when I leave?
That is separate. The withholding is deducted before payment and is normally not declared, although a final return may be needed if you had other income. It is explained in the superannuation guide.
What we could not confirm
We could not check the ATO's website, so we have not been able to open its rates page. The rates come from the law. These remain unconfirmed in an official source:
- The exception by country and its list.
- When a return is not needed.
- Withholding when the employer is not registered.
- The Medicare Levy and the rate on interest.
- How to lodge on the ATO website. We also could not check the public register of tax agents.
Sources
Seen on 5 November 2026.
- Income Tax Rates Act 1986, compilation of 1 July 2026 (law)
- PwC: personal taxes (third party; reviewed on 12 October 2026)
- PwC: tax administration (third party; same date)
- PwC: residence (third party; same date)
- PwC: other taxes (third party; same date)
- H&R Block: working holiday tax (company; July 2020)
- Etax: backpacker tax (company; undated)
- Etax: tax return deadline (company; undated, covers the 2026 deadline)
- Aware Super: if you leave Australia (pension fund)
- Tourism Australia: how to set up your life (official; modified in May 2025, according to its metadata)