Working holiday maker tax: what employees and employers should check

Published by SESAY · 2026-10-07 · General Australian payroll guidance

What to understand first

Working holiday makers have specific withholding arrangements, including employer registration requirements. The ATO also explains circumstances where residency and relevant tax treaties affect treatment. Do not assume that every temporary visa holder, or every employee from the same country, belongs in the same payroll category.

Practical checks

• Confirm whether the working holiday maker rules apply.
• Employer: check registration and the current ATO schedule.
• Retain relevant declarations and evidence with restricted access.
• Escalate treaty or residency questions before overriding tax settings.

Fictional example

A fictional employer hires two overseas workers with different visa arrangements. The onboarding checklist initially puts both into one tax category. A payroll review catches the assumption and asks for the information needed to apply the appropriate ATO rules. The employer also checks its own registration status.

Your next step

Employees should ask which withholding schedule is being used if deductions look unexpected. Payroll should explain the basis and investigate the facts rather than promising a refund. If incorrect treatment has already occurred, follow the applicable correction process and obtain advice on how the employee’s annual assessment may be affected.

How SESAY can help

SESAY can support working holiday maker onboarding controls, configuration checks and employee communications within the agreed service scope.

Official sources

• ATO — Employers of working holiday makers
• ATO — Schedule 15: working holiday makers

Sources researched 2026-10-07. Examples are fictional and use stated assumptions. Confirm current rules and your circumstances before acting. This is general information, not individual tax or legal advice. SESAY is independent of the regulators linked here.