Income Tax on a Working Holiday Visa in Australia


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How much Income Tax is payable while on a Working Holiday Visa in Australia.

Holders of 417 and 462 Working Holiday Visa pay a special rate of tax while working in Australia. It is lower than other temporary visa holders but higher than Australian residents.

The first $37,000 of your net income whilst on a 417 or 462 visa is taxed at a flat rate of 15%. There is no tax free threshold. Anything above $37,000 is taxed at normal “Residents” tax rates.

In Comparison:

Most Australian residents would pay $3,572 on the first $37,000 of net income. This is 9.65% of Taxable Income.
Holders of 417 and 462 Working Holiday Visas would pay $5,550 on the first $37,000 of net income. This is 15% of Taxable Income.
Other non Resident visa holders would pay $12,025 on the first $37,000 of net income. This is 32.5% of Taxable Income.

2018-19 Example Australian Tax Rates.

Working holiday maker (417 and 462 Visa holders).

$ 18,000 = $2,700 (15.00%)
$ 37,000 = $5,550 (15.00%)
$ 90,000 = $22,775 (25.31%)
$180,000 = $56,075 (31.15%)


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Foreign resident.

$ 18,000 = $5,850 (32.50%)
$ 37,000 = $12,025 (32.50%)
$ 90,000 = $29,250 (32.50%
$180,000 = $62,550 (34.75%)
Foreign residents are not required to pay the 2% Medicare levy.

Resident.

$ 18,000 = $0 (0.00%)
$ 37,000 = $3,572 (9.65%)
$ 90,000 = $20,797 (23.11%)
$180,000 = $54,097 (30.05%)
+ Residents pay the extra 2% Medicare Levy

Source:

https://www.ato.gov.au/Rates/Individual-income-tax-rates/

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