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Visa and Immigration

Tax rules for 417 and 462 Working Holiday and Bridging visas

By 11 September 2018June 4th, 2026No Comments

Did you know working holiday makers are taxed differently to everyone else?

If you’re in Australia on a 417 (Working Holiday) or 462 (Work and Holiday) visa, the tax rules that apply to you aren’t the same as those for residents — and getting them wrong can cost you. Here’s what you need to know, in plain terms.

How working holiday makers are taxed

If you work in Australia, tax is withheld from your pay and you may need to lodge a tax return each year, depending on how much you earn. The Australian income year runs from 1 July to 30 June.

As a working holiday maker on a 417 or 462 visa:

  • The first $45,000 of income you earn in Australia is taxed at 15%.
  • Anything above $45,000 is taxed at standard foreign resident rates.

This applies regardless of your residency status for tax purposes.

The catch most people miss: your employer has to be registered

For the 15% rate to apply, your employer must be registered with the ATO as a working holiday maker employer.

If they’re not registered, they’re required to withhold tax at foreign resident rates on your entire income — not just the portion over $45,000. That’s a meaningful difference to your take-home pay.

So it’s worth a simple check: tell your employer you’re on a 417 or 462 visa, give them your Tax File Number, and confirm they’re registered as a WHM employer. Getting this right from your first payslip saves you sorting it out at tax time.

What about bridging visas?

A Bridging visa A (BVA) lets you stay in Australia lawfully until a decision is made on your substantive visa application.

A few things to keep in mind:

  • If you still hold a current substantive visa when your BVA is granted, you must keep complying with any conditions on that substantive visa. Once your substantive visa ends, your BVA conditions take over.
  • A BVA does not let you return to Australia if you leave. If you travel overseas, you’ll need a separate visa to come back.
  • If your BVA doesn’t let you work — or restricts your work — you can apply for a BVA that does. You’ll usually need to show you’re in financial hardship to be considered.

How bridging visas and tax interact

Here’s where the two topics meet: if you obtain a bridging visa to stay in Australia while you’re on a 417 or 462 working holiday visa, you’re still bound by the rules of that working holiday visa — and the tax rules that come with it. The bridging visa doesn’t change your tax treatment as a working holiday maker.

Not sure where your visa leaves you at tax time?

Getting your working holiday maker status recorded correctly — and understanding how your bridging visa affects things — can make a real difference to what you keep. If you’ve got questions about your visa or how you’re being taxed, get in touch with our team. We’ll help you make sense of it.

For the official detail, these government resources are the source of truth:

This article is general information only and reflects ATO working holiday maker tax rates current at the time of publishing. It isn’t tax or migration advice — for guidance on your situation, speak to our team or a registered tax agent.