Document ID: chunk:federal_register_of_legislation:F2024L00664:schedule:15:p3
Version: federal_register_of_legislation:F2024L00664
Segment Type: schedule
Provision Reference: sch 15 (pt 3/5)
Character Range: 307716–310476

in Table A.

Table A: Working holiday makers income tax rates

Table A: Working holiday makers income tax rates for 2024-25
Taxable income       Tax rate                                  Value
                                                                 (a)
$0 – $45,000         15% on each $1 up to $45,000              0.15
$45,001 – $135,000   30% on each $1 over $45,000 to $135,000   0.30
$135,001 – $190,000  37% on each $1 over $135,000 to $190,000  0.37
$190,001 & over      45% on each $1 over $190,000              0.45

If no TFN is provided you must withhold at 45% on total payments made. If using formulas, the value of 'a' is 0.45.
Example 1: using the formula

A foreign resident employee is working in Australia under a work and holiday makers visa (subclass 462) and has earnings for the month of $2,825.75.

They have provided their TFN on a Tax file number declaration, and total payments you have made to them for the income year do not exceed $45,000.

x = 2,825 (ignoring cents)

Withholding amount (y)

= (a × x)

= 0.15 × 2,825

= 423.75 or $424 (rounded to nearest dollar).

Example 2: when payments exceed $45,000

A foreign resident employee is working in Australia under a working holiday makers visa (subclass 417). They have earnings for the month of May 2025 of $8,173.20.

They have provided their TFN on a Tax file number declaration and the total payments you have made to them from January 2025 to April 2025, in the 2024–25 income year, is $47,000. Last month's payment resulted in total payments exceeding $45,000. Therefore, from the next pay you must withhold at the foreign resident tax rates specified in Table A.

Withholding is calculated at 30 cents for every dollar of earnings over $45,000 (to $135,000).

Current pay = $8,173.20

The value of 'a' in the formula is 0.30.

Withholding = 0.30 × 8,173

= 2,451.90 or $2,452 (rounded to the nearest dollar).

Note: Working holiday makers cannot claim Medicare levy adjustments or tax offsets to reduce withholding. If your working holiday maker has claimed a Medicare levy adjustment on a Medicare levy variation declaration or a tax offset on a Withholding declaration, don't make any adjustments to the amount you withhold.

Any working holiday maker who is an Australian resident for tax purposes will be able to claim Medicare levy adjustments and tax offsets that they are entitled to when they lodge their income tax return.

Rounding of withholding amounts

The withholding amounts calculated as a result of applying the above rates and formula are rounded to the nearest dollar. Values ending in 50 cents and higher are rounded to the next higher dollar. Do this rounding directly – that is, do not make a preliminary rounding to the nearest cent.