News from the Australian Federal Budget for Working Holiday Makers


The Australian Federal Budget was handed down on 12 May 2015 by the then Australian Federal Treasurer, Joe Hockey. If you are coming to work in Australia as a working holiday maker from 1 July 2016, the amount of tax you will be required to pay on your Australian earnings will change.

Effective from 1 July 2016, working holiday makers will pay a rate of tax of 32.5%, regardless of whether they meet other Australian residency tests.

In addition, working holiday makers will no longer have access to the tax free threshold, meaning if you are currently a WHM, you can earn up to a certain level of income and not pay tax, which is the same as Australian residents. WHM will also not be eligible for the low income offset and the lower tax rate of 19% for Australian income, above the tax free threshold.

However, please note that employees in Australia on a company sponsored temporary work visa (such as a Temporary Work (Skilled) visa (subclass 457)) will not be affected by these tax changes.

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