Backpacker tax – working holiday makers


As of 1 January 2017 there is a tax rate of 15% on all earnings up to $37,000 for backpackers.  

This tax rate applies to every dollar earned by the backpacker who must be on a subclass 417 Visa (working holiday) or a subclass 462 Visa (work and holiday).

Further information is available on the ATO website and read our Overseas Workers Taxation fact sheet (inc. case studies).

The ABC has written comprehensive summary of the changes: what does it all mean for working holiday makers and the farmers who employ them?