Working Holiday Maker Visa- NEW Reduction and Tax Rates Announced
September 28, 2016

The Government has finally recognised the importance of working holiday makers in Australia. They play a particular influence in the agriculture, horticulture, tourism and hospitality sectors.

The Cabinet have implemented a tax rate applying to working holiday makers at 19 per cent on earnings up to $37,000 rather than 32.5 per cent. The Turnbull Government will also reduce the application charge for these visas by $50 totalling $390. The outcome of this implementation will lower the costs for working holiday makers coming into Australia and leave them with more money to spend whilst here.

The Government has also noticed a decline since 2012-2013 of working holiday makers coming to Australia. They are planning on introducing flexible arrangements, allowing an employer with premises in different regions to employ working holiday makers for 12 months, and being able to work up to six months in each region, benefitting the industry and working holiday makers. In addition, a $10 million global youth targeted advertising campaign shall be initiated to promote Australia to potential working holiday makers tasking Tourism Australia.

The employers of working holiday makers will also be required to now undertake a once-off registration with the Australian Taxation Office, to provide valuable data on the employment of working holiday makers. Employers who do not register will be required to withhold tax at the 32.5 per cent rate. These registered employers will be able to be found through the list on the ABN lookup.

The Government will also increase the tax on working holiday maker’s superannuation payments when they leave Australia to 95 per cent, as to support Australians in their retirement and not to provide additional funds for working holiday makers when they leave Australia. The Treasurer also described a one-off increase to the Passenger Movement Charge of $5.00 from 1 July 2017.

The Government’s package of reforms to working holiday makers will help to ensure they pay fair tax on their earnings, but also increase the attractiveness of Australia as a top destination for backpackers. This new tax rate is looking to take effect from the 1 January 2017.

AIMS consists of a team of professional migration agents and solicitors who provide excellent assistance to people who intend to migrate to Australia or Australian residents or citizens who wish to bring their family Whether you are seeking to study or work or establish a business in Australia, we can advise you on your visa options and assist you in securing the right visa.
For more information or to set up a consultation with one of our agents, just give AIMS a call on 03-9078 6819 or email us at


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