You may come to Australia to live permanently, study, or holiday. If you earn income while in Australia, you’ll generally need to pay tax and may be required to lodge an Australian tax return.

To work in Australia, you must have a valid work visa and should apply for a Tax File Number (TFN).

If you also earn income from overseas, you may need to declare your foreign income in your Australian tax return, depending on your residency status for tax purposes.

If you’re working in Australia and are an eligible employee, your employer is required to pay superannuation (retirement savings contributions) on your behalf.

1) Working holiday makers

If you work in Australia as a working holiday maker (WHM), your employer will withhold tax from your pay and you may need to lodge a tax return each year. You are a WHM if you have a visa subclass of either:

• 417 Working Holiday
• 462 Work and Holiday (backpackers).

Your residency for tax purposes For tax purposes in Australia, individuals will be either:

• an Australian resident
• a foreign resident.

For most WHMs, whether you are an Australian or a foreign resident for tax purposes does not affect the rate of tax you pay. The only exception to this is if you are both:

• an Australian resident for tax purposes
• from a non-discrimination article (NDA) country.

For more information, see Taxation of Australian resident WHMs from NDA countries. Most people who come to Australia for a working holiday or to visit are foreign residents for tax purposes. To work out your residency as a WHM, see Are you an Australian resident for tax purposes if you come for a working holiday or visit? Australian resident WHM from NDA country Some WHMs may be eligible to be taxed on the same basis as a resident Australian national. To be eligible, you must be:

• considered an Australian resident for tax purposes and
• from an NDA country.

A national of 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 someone who meets both of the following:

• the person is a resident of Australia for tax purposes
• the person is a permanent resident of Australia or an Australian citizen.

Australia’s tax treaties with NDA countries contain non-discrimination articles that affect how much tax is payable. For more information, see Taxation of Australian resident WHMs from NDA countries. Tax withheld by your employer If you are 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. Tax table for working holiday makers The following tax rates for 2023–24 apply for working holiday makers holding a subclass 417 or 462 visa from 1 July 2020.

Working holiday makers Tax Rates

Tax Rates 2025–26

Tax Rates 2024–25

If you do not provide a Tax File Number (TFN) to your employer, they are required to withhold tax at the highest rate of 45% on all payments made to you.

Lodging a Tax Return

• The Australian income year runs from 1 July to 30 June.

• Most individuals who earn income and have tax withheld are required to lodge an income tax return.

• You can lodge your return for free at www.ato.gov.au, but the process can be confusing.

If you need help, we recommend using a registered Tax Agent who specialises in returns for working holiday makers.

If you are leaving Australia permanently before 30 June, you may be able to lodge your tax return early.

2) Studying in Australia

If you’re enrolled in a course in Australia that lasts six months or longer, you may be considered an Australian resident for tax purposes. This means:

• You pay tax at the same rates as other Australian residents.

• You may be eligible for benefits under the Australian tax system, including:

  • The tax-free threshold (or a portion of it, if you’re in Australia for only part of the financial year),

  • Tax offsets, and

  • Lower tax rates compared to foreign residents.

Declaring Income

As an Australian resident for tax purposes, you’re generally required to declare all income, whether earned in Australia or overseas, on your Australian tax return.

However, many international students hold a temporary visa, which may make you a temporary resident for tax purposes. If so:

• Most of your foreign income is not taxable in Australia.

• You only need to declare:

  • Income earned in Australia, and

  • Income earned from employment or services performed overseas while you’re a temporary resident in Australia.

Lodging a Tax Return

• The Australian income year runs from 1 July to 30 June.

• Most people who earn income and have tax withheld are required to lodge a tax return.

• You can lodge your tax return online for free at www.ato.gov.au, but the process can be confusing.

If you need assistance, we recommend using a registered Tax Agent who specialises in returns for international students.

If you leave Australia permanently before 30 June, you may be eligible to lodge your tax return early.

3) Seasonal Worker Program and Pacific Labour Scheme

If you hold a Temporary Work (International Relations) subclass 403 visa and work in Australia under the Pacific Australia Labour Mobility (PALM) scheme, your employer will withhold tax from your wages. You may also need to lodge an income tax return each year, depending on your circumstances.

Tax Residency Status

For tax purposes in Australia, individuals are classified as either:

• Australian residents, or

• Foreign residents

Most seasonal PALM workers are considered foreign residents, while long-term PALM workers may be treated as Australian residents, depending on individual circumstances.

Tax and Withholding

Before you receive your pay, your employer will deduct tax based on your residency status and income level.

Foreign Resident Workers

If you are a foreign resident for tax purposes, and:

• You work under the PALM scheme, and

• Your employer is an approved employer under the Seasonal Worker Program (SWP) deed of agreement,

then your employer will withhold tax at a flat rate of 15% on your income.

• This tax is forwarded directly to the Australian Taxation Office (ATO).

• You do not need to lodge a tax return if:

  • You have no other sources of Australian income, and

  • Your income is from an approved employer.

Your program income is considered non-assessable, non-exempt, and you cannot claim deductions against it.

If your employer is not approved, they will withhold tax at standard foreign resident rates, and you must lodge a tax return.

Note: Proposed changes to PALM scheme taxation are under consideration but not yet law. Updates will be provided if the rules change.

Australian Resident Workers

If you are considered an Australian resident for tax purposes, your income is taxed according to individual income tax rates.

• Your employer will still withhold tax from your wages.

• You are required to lodge a tax return.

Lodging a Tax Return

• The Australian income year runs from 1 July to 30 June.

• Most people who earn income and have tax withheld must lodge a return.

• You can lodge your return free online at ato.gov.au, though the process can be confusing.

We recommend using a registered tax agent who specialises in seasonal worker tax returns if you need assistance.

If you leave Australia permanently before 30 June, you may lodge your tax return early.

Departing Australia superannuation payment (DASP)

When you leave Australia and return to your home country, you can apply to have your super paid to you as a departing Australia superannuation payment (DASP). You can apply after you leave Australia if you meet all DASP requirements.