Working holiday makers (WHMs) get their own tax schedule, and it is neither fully advantageous nor fully punishing compared to residents. The flat 15% on the first $45,000 means you pay less tax than a resident on low incomes but miss out on the $18,200 tax-free threshold entirely.
The 2025-26 WHM tax rates
- $0 to $45,000: 15% flat
- $45,001 to $135,000: 30%
- $135,001 to $190,000: 37%
- $190,001+: 45%
Registered vs unregistered employer
Critical distinction: if your employer is NOT registered as a WHM employer with the ATO, they withhold at 30% flat (resident non-TFN rate) instead of the 15% WHM rate. Always confirm registration before starting work.
The DASP (Departing Australia Super Payment)
When you leave Australia permanently, you can claim your super back through DASP. But the tax hit is brutal:
- 65% withholding on the taxed element (35% if from a working holiday maker fund)
- This means if you accumulated $5,000 in super: you receive only $1,750 after DASP tax
Take-home comparison on $35/hour, 38hr week
- WHM (registered employer): $983/week net ($52/week to super)
- Australian resident: $1,024/week net (gets tax-free threshold benefit)
- WHM (unregistered employer): $931/week net (30% flat — overpays, needs to lodge return)
The registered WHM rate is surprisingly close to resident take-home for earnings under $45K. Above that, residents clearly win.
