Working Holiday Makers (backpackers) are taxed differently from Australian residents. Employers must register as WHM employers and apply WHM tax rates.
WHM tax rate: The first $45,000 of income is taxed at 15%. Earnings above that follow higher brackets set by the ATO.
No tax-free threshold: WHM earners cannot claim the $18,200 tax-free band unless they become Australian residents for tax purposes.
Superannuation still applies: WHM workers receive super contributions but pay a higher tax rate if they withdraw super upon leaving Australia.
Why take-home pay differs from residents: The 15% flat rate on lower income typically results in lower take-home pay compared to residents who receive the tax-free threshold.
This calculator does not currently model WHM tax rates but focuses on resident PAYG and Medicare.
Call to action: If you are a WHM earner, compare your payslip with ATO WHM tax tables or use the resident calculator here as an approximation.