Register with the ATO as an employer of working holiday makers, then withhold 15% tax from the first dollar up to $45,000 a year, with higher rates above that. If you don’t register you must withhold 30% up to $135,000 and penalties can apply. If the worker gives you no TFN, withhold at the top rate. Pay 12% super, and since 1 July 2026 it must reach their fund within 7 business days of payday.
Last checked: 13 November 2026
Register as an employer of working holiday makers
Any business that employs someone on a 417 or 462 visa needs to register with the ATO to use the working holiday maker tax rates. You do it once, online, through ATO Online services for business or through your registered tax or BAS agent. You need an ABN and to be registered for PAYG withholding first.
You can check whether a business is registered on the ABN Lookup website, which is also how workers check their employer.
The withholding rates
Registered employers withhold 15% from the first dollar earned, up to $45,000 in the income year. Amounts above that are taxed at higher rates set out in the ATO’s working holiday maker tax table (Schedule 15). The rate applies to wages, commissions, bonuses, back pay, unused leave and termination payments.
Unregistered employers must withhold 30% from the first dollar up to $135,000, and foreign resident rates above that. Penalties may apply for employing a working holiday maker without registering.
No TFN? If the worker doesn’t give you their tax file number, withhold at the top rate. Most travellers apply for a TFN online as soon as they arrive. Our TFN guide shows them how.
The TFN declaration
Every new employee completes a tax file number declaration. Working holiday makers answer yes to the question asking if they are on a working holiday visa. That answer, plus your registration, is what tells your payroll to use the 15% rate.
Single Touch Payroll
Report working holiday maker pay through Single Touch Payroll like any other employee, using the working holiday maker income type. If you are not yet on STP, you must give them a payment summary with an H in the gross payment type box. Accurate reporting matters: travellers use it to lodge their tax return and to prove their specified work for a second year visa.
Superannuation and Payday Super
- Working holiday makers get super like any other employee: 12% of qualifying earnings.
- Offer them a choice of super fund.
- From 1 July 2026, Payday Super applies: super must reach their fund within 7 business days of each payday, not each quarter.
- The Small Business Superannuation Clearing House is no longer available, so use your payroll software or fund’s own service.
- Late payments attract the super guarantee charge, with penalties of 25% or 50%.
When travellers leave Australia they can claim their super back as a Departing Australia Superannuation Payment.
ABN contractors
Some travellers are asked to work on an ABN. If they work like an employee (you set the hours, supply the tools, direct the work) they are an employee, ABN or not. You must use the working holiday maker rates and pay super, and penalties apply if you get it wrong.
Hire working holiday makers for free
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Frequently asked questions
What is the backpacker tax rate for employers?
15% on the first $45,000 if you are registered with the ATO as an employer of working holiday makers. Higher rates apply above $45,000.
What happens if I am not registered?
You must withhold 30% from the first dollar, and the ATO can apply penalties for employing working holiday makers without registering.
Do working holiday makers get super?
Yes, 12% of qualifying earnings, paid within 7 business days of payday since 1 July 2026. They can claim it back when they leave Australia.
Do I need to register again every year?
No. You register once. If you stop employing working holiday makers you can cancel it, and you can check your registration on ABN Lookup any time.
Can I pay a working holiday maker cash?
You can pay by any method, but you must still withhold tax, pay super, give payslips and report through STP. Cash in hand with no tax or records is illegal.
Sources: ATO: employers of working holiday makers, ATO: Schedule 15 tax table, ATO: Payday Super. General information only, not tax advice. Talk to your accountant about your business.
