Lower taxes for working holiday makers

From 1 January 2017, lower the income tax rate for all working holiday makers to 19 per cent from the first dollar earned up to $37,000, with ordinary marginal tax rates to be applied from $37,001 onwards.

New tax rates for WHMs Taxable income

$37,001 – $80,000 ($87,000) $180,001 and over

Tax on this income

$7,030 plus 32.5c for each $1 over $37,000 $58,005 plus 45c for each $1 over $180,000


0 – $37,00019c for each dollar over $0
$80,001 ($87,001) – $180,000$21,005 plus 37c for each $1 over $80,000 ($87,000)

Foreign residents are not required to pay the Medicare levy.
The above rates do not include the Temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.
The $80,000 threshold is increasing to $87,000 for the 2016-17 financial year; tax paid calculation is based on the $80,000 threshold.

Tourism and flexibility initiatives


– The register will be made public, so that working holiday makers and other employers can identify if an employer is registered.

Measures to offset the Budget impact of the proposals

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