Working in Australia – Opportunities, tips and job search advice

Introduction

Working Holiday Visa (WHV) holders in Australia aren’t obligated to work, but most choose to do so at one point or another to support their lifestyle. This multi-chapter guide will explain everything you need to know about working in Australia as a working holiday maker, from the job search to workers rights to taxes to CV tips, and more.

Familiarizing yourself with key topics

As a working holiday maker—i.e. holder of a valid Working Holiday Visa (subclass 417 or 462)—you are legally allowed to do short-term work in Australia to help fund your stay.

However, before starting to work, you have to understand and take care of a few things.

1. Apply for a Tax File Number (TFN)

Unless you’re only volunteering, you need a TFN. This is a unique identifier issued by the Australian Taxation Office to each taxpaying entity.

It is advisable to apply for your TFN as soon as possible, as the official processing time is 28 days.

If you start working without a TFN, you will have to pay more tax! Your employer must withhold a flat 45% on any payment made to you. If you started work and are still waiting for your TFN application to be processed, no worries – you have up to 28 days to provide the number to your employer. The appropriate tax rate will then apply.

Getting a TFN is free and easy. Read Everything you need to know about the Australian TFN.

2. Open a bank account

If you’re planning to work in Australia, then you should open an AUD bank account. Employers generally don’t like sending money to foreign institutions.

Opening a bank account in Australia is straightforward. It’s best to complete this step within six weeks of your arrival, otherwise you will have to provide more identification documents.

For more information read How to open a bank account in Australia.

3. Understand taxes in Australia

All workers in Australia must pay income tax to the Australian Taxation Office. If you’re an employee (i.e., your employer pays you an hourly wage or a salary), income tax is withheld from your salary or wages and is recorded on your pay slips.

Your tax rate depends on several variables:

If your employer is registered as an employer of working holiday makers, your tax rate is 15% for the first $45,000 earned, then 32.5% for any income above that.
If your employer isn’t registered as an employer of working holiday makers, your tax rate is 32.5% for earned income up to $120,000.
If you’re self-employed with an Australian Business Number (ABN), income tax is not withheld. Instead, you will have to pay a lump sum to the ATO at the end of the fiscal year or when you leave Australia. Your tax rate is 15%.

The Australian government strongly recommends that you disclose your working holiday maker status and that your employer register as an employer of WHMs. If not, your tax rate is much higher and penalties apply for the employer.

If your employer isn’t familiar with how to register, you can direct them to the Employers of working holiday makers page for more information on how to register with the ATO in order to withhold tax at the working holiday maker tax rate.

Prior to 2017, it was common for WHMs apply for and receive a large tax return because they overpaid in taxes. Since then, large tax returns have become rarer, as WHMs now have access to a reduced tax rate of 15% (unless of course the wrong tax rate was applied and you overpaid taxes, or you’re claiming deductions for some of your expenses).

4. Understand superannuation

The superannuation fund (or just “super”) is a retirement fund. If you earn more than $450 per month before taxes (working for the same employer), your employer must pay 9.5% of the value of your regular earnings into a super fund on your behalf.

There are many types of super funds. Typically, your first employer will offer for you to join the company’s super. Many WHMs also opt for their bank’s super when they open an account. The key is to stick to one super fund because it’s easier to keep track and you will pay less in service fees, as each super charges its own.

Since most WHMs don’t plan on retiring in Australia, you can claim back some of your super when you leave Australia by submitting the Application for a departing Australia superannuation payment. WHMs can get 35% back from their contributions to the super fund. For example,

If you earned $10,000 in Australia, you can claim $332 from your super account.
If you earned $20,000 in Australia, you can claim $665 from your super account.

For more information, read Taxes and superannuation for working holiday makers in Australia.

5. Respect the 6 month limit

Condition 8547 of your visa states that “You must not be employed by any one employer for more than 6 months, without the prior permission in writing of the Secretary.” In most cases, after six months of work for one employer, you will have to quit.

You do NOT have to request permission if the work is:

In different locations and work in any one location does not exceed 6 months. For instance, you work for Down Under Inc. in Sydney for six months, then you’re transferred to the Down Under Inc. field office in Melbourne.
In plant and animal cultivation anywhere in Australia. This includes fruit picking, packing, pruning, and trimming.
In certain industries in northern Australia only. Some sectors have a labour shortage, such as aged care and disability services, fishing and pearling, tree farming and felling, construction, mining, tourism and hospitality.

You DO have to request permission if:

You’re working as an au pair and you would like to stay with the same family for longer than six months.
You’re facing exceptional circumstances. For example, you’re performing critical work and the project takes longer than expected.

For more information, read How to work more than 6 months for the same employer.

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