What is a working holiday maker for PAYG purposes?
Understand how working holiday maker withholding differs from regular PAYG withholding.
Summary
A working holiday maker (WHM) for PAYG purposes is generally a worker holding a subclass 417 Working Holiday visa or subclass 462 Work and Holiday visa. Employers must register with the ATO before the first payment if they want to use the special WHM withholding rates.
What this means
A registered WHM employer withholds 15% from the first $45,000 of working holiday maker income and then applies the relevant foreign-resident rates to income above $45,000.
If the employer is not registered as a WHM employer, it generally must withhold 30% on income up to $135,000 and apply foreign-resident rates above that amount. Penalties may apply for failing to register. The worker should also provide a TFN; otherwise different withholding rules can apply.
Typical actions
- Confirm whether the worker holds a subclass 417 or 462 visa.
- Make sure the business is registered for PAYG withholding.
- Register as a WHM employer before the worker’s first payment.
- Apply the current WHM withholding rates and tax table.
- Report payments through STP and keep the required payroll records.
Official ATO sources
Last checked: 25 August 2026
Employers of working holiday makers (WHMs)
Explains the WHM employer registration and withholding rules.
Working holiday makers
Explains how WHMs are taxed.
Schedule 15 – Tax table for working holiday makers
The tax table employers use for WHM payments.
Related questions
- What is PAYG withholding?
- How do I register as an employer with the ATO?
- What is the superannuation guarantee?
- What records must employers keep for tax purposes?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
Need help understanding this in plain English?
Try the Tax Clarity App for a plain-English answer.