Working holiday Makers (WHM’s)

Lewis Thomas

With 2024 being right around the corner, and harvest quickly approaching, now is a great time for arefresher on working holiday makersAs the world is becoming increasingly engaging in the global workforce, businesses are increasingly tapping into the global workforce. However, it is crucial for employees to understand their obligations when hiring WHM’s. 

1. Understanding Visa Regulations:

• There are 2 types of visas subclasses, that is 417 – Working Holiday & 462 Work & Holiday (backpackers). It is important to check the validity of each visa and ensure WHM are eligible for employment during their stay.​

2. For tax purposes:

• Individuals will either be an Australian resident or a foreign resident. For most WHM’s this will not affect their tax rates. The only exception if you are both a) an Australian resident for tax purposes and b) from a non-discrimination article (NDA) country (Refer to ATO for details). All employees will need a valid Tax File Number (TFN). This can be done online once a valid work visa has been obtained. 

• Working holiday makers will have slightly different tax rates. Refer to the below table for WHM’ tax rates for the 2022-2023 financial year.

Fig 1.1

Source: Australian Tax Office 

3. Tax withheld by your employer

• If you’re a WHM and you’re employer is registered with us as a WHM employer, they will withhold tax at a rate of 15% for the first $45,000 earned during the 2020-2021 and later financial years. (Refer to ATO for WHM tax tables)

4. Fair and Equal treatment

• WHM’s like all employees deserve fair and equal treatment in the workforce. Employers must provide the same rights, benefits, and working conditions as local employees. This includes minimum wage laws, working hours, occupational health, and safety standards etc. 

• Cultural diversity is one of the key aspects of hiring WHM’s. Employers should promote an inclusive work environment, fostering respect among employees from different cultural backgrounds.

Lewis Thomas