Super and Tax Obligations When Employing Working Holiday Makers in Australia
If you employ working holiday makers (WHMs) in Australia, it’s essential to understand your superannuation and tax obligations. While super rules are the same as for resident employees, tax rules differ significantly.
This guide explains what employers need to know to stay compliant and avoid penalties.
Superannuation Obligations for Working Holiday Makers
There are no special super rules for working holiday makers. As an employer, you must:
- Contribute 12% superannuation (Super Guarantee) on eligible earnings
- Pay contributions into a fund in the employee’s name
- Offer employees a choice of super fund
- Ensure payments are made on time
Key Super Deadlines
- Quarterly deadline: Super must be received by the employee’s fund by 28 July 2026 for the final quarter of the financial year
- From 1 July 2026: Super must be paid within 7 days of each payday (payday super)
Failing to meet these obligations may result in the Superannuation Guarantee Charge (SGC).
What Is a Working Holiday Maker?
A working holiday maker is a temporary resident who holds either:
- Working Holiday visa (subclass 417)
- Work and Holiday visa (subclass 462)
This classification is important because special tax rates apply.
Employer Obligations for Working Holiday Makers
- Check Work Rights
You must confirm the employee is legally allowed to work in Australia before employment begins.
- Verify Visa Conditions
Ensure the work complies with visa restrictions. This can be checked via the Visa Entitlement Verification Online (VEVO) system.
- Register as a WHM Employer
You must register with the Australian Taxation Office (ATO) as a WHM employer.
Failure to register may result in penalties.
- Withhold Tax at WHM Rates
Registered employers must:
- Withhold 15% tax on earnings up to $45,000
- Apply different rates for income above $45,000
What Happens If You Don’t Register?
If you employ a worker on a subclass 417 or 462 visa and fail to register as a WHM employer, penalties may apply and incorrect tax rates could be used.
Departing Australia Superannuation Payment (DASP)
Working holiday makers can claim their super when they leave Australia through a Departing Australia Superannuation Payment (DASP).
Key points:
- Can be claimed once the worker has left Australia and their visa has expired
- Tax rate is 65% on the taxable component (including employer contributions)
- If unclaimed after 6 months, super is transferred to the ATO (but can still be claimed later)
Practical Tips for Employers
Meeting your obligations doesn’t have to be complicated. Focus on the fundamentals:
- Confirm whether the worker qualifies as an employee for super purposes
- Use the correct super rate (12%)
- Pay super on time and via compliant systems
- Maintain accurate payroll records
From 1 July 2026, remember that payday super rules apply to WHMs, just like other employees.
When to Seek Professional Advice
If you’re unsure about your obligations:
- Speak with a registered tax agent for compliance guidance
- Encourage employees to consult a licensed financial adviser for personal super decisions
Professional advice can help ensure you meet your legal obligations and support your workforce effectively.