Tax and Super in Australia: What Every Backpacker Needs to Know

March 4th, 2026·5 min read

Working in Australia is exciting, but the tax and super system can feel overwhelming if you've never dealt with it before. The good news is that once you understand the basics, it's straightforward — and there's real money waiting for you when you leave.

Your Tax Obligations as a Working Holiday Maker

As a Working Holiday Maker (WHM), you're classified as a non-resident for tax purposes in most cases. This means a different tax rate applies to you compared to Australian citizens and permanent residents.

From 1 January 2017, the backpacker tax was introduced. Here's what it means for you:

You're taxed at 15% on every dollar you earn up to $45,000
Earnings above $45,000 are taxed at higher marginal rates
You do not benefit from the tax-free threshold (the first $18,200 Australians earn is tax-free — you don't get this)

This applies to Subclass 417 and 462 visa holders working for registered employers.

Getting a Tax File Number

Before you start any job, you need a Tax File Number (TFN). This is a unique identifier the Australian Taxation Office (ATO) uses to track your tax contributions.

Apply online at the ATO website — it's free and takes about 28 days to arrive by post. If you start work without a TFN, your employer is required to withhold tax at the highest rate (47%), so get this sorted early.

Lodging a Tax Return

If you worked in Australia during the financial year (1 July to 30 June), you'll need to lodge a tax return after 30 June. You can do this:

Online via myTax (through your myGov account)
Through a registered tax agent
Before you leave Australia if you're departing mid-year

Many backpackers end up with a tax refund, especially if they didn't earn close to $45,000. It's worth lodging even if you're unsure — the ATO will calculate what you're owed.

Superannuation: Free Money You're Probably Ignoring

Superannuation (super) is Australia's compulsory retirement savings system. Your employer must pay 11.5% of your gross wages into a super fund on your behalf. Most backpackers don't realise this money is accumulating — or that they can claim it back.

How Super Works

Every time you get paid, your employer makes a separate contribution to a super fund. You choose the fund (or your employer assigns one), and the money sits there growing until you access it.

As a temporary visa holder, you can't access this money while you're in Australia. But once you permanently leave Australia, you can claim it all back through the Departing Australia Superannuation Payment (DASP).

Claiming DASP

Here's the step-by-step process:

Find your super fund(s) — check your payslips, or use myGov's linked super tool
Apply online at the ATO's DASP portal after your visa expires or is cancelled
Wait for processing — usually 28 days
Receive the payment to your overseas bank account

The DASP is taxed at 65% for Working Holiday Makers. So if you've accumulated $5,000, you'll receive $1,750. It feels like a lot to lose, but it's still free money you've earned — and it's yours.

Tips to Maximise Your Super

Track every employer — super is paid separately from wages, and some employers (especially cash-in-hand farm work) may try to skip it. This is illegal.
Consolidate multiple funds — if you worked for several employers, you might have multiple super accounts. Consolidate them to avoid multiple sets of fees eating into your balance.
Don't lose track — it's easy to forget about super when you change jobs every few months. Keep a list of every employer and their ABN.

Common Tax Mistakes to Avoid

Even with good intentions, backpackers make costly errors. Here are the most common:

Not declaring all income. Cash jobs might feel off the grid, but the ATO has sophisticated data-matching tools. If an employer reports your wages (and most do), it will show up.

Missing the DASP deadline. You have five years from when your visa expires to claim DASP. After that, the ATO keeps your super permanently. Don't leave money on the table.

Forgetting work-related deductions. You can claim deductions for expenses directly related to earning income — tools, uniforms (not generic clothing), and some travel between job sites. Keep receipts.

Using the wrong tax agent. Some "backpacker tax agents" charge excessive fees. Compare before committing, and check they're registered with the Tax Practitioners Board.

Understanding Your Payslip

Every payslip should show:

Gross wages — what you earned before tax
Tax withheld — amount deducted for income tax
Net wages — what you actually receive
Super contributions — shown separately (often on a quarterly statement from your super fund)

If your payslip doesn't show super, ask your employer directly. If they claim they're not paying it, you can report them to the ATO — it's a legal obligation.

Before You Leave Australia

Run through this checklist before your departure:

[ ] Lodge your final tax return (or arrange to do it from overseas)
[ ] Note all your super fund names and member numbers
[ ] Apply for DASP once your visa expires
[ ] Update your overseas bank account details with the ATO

Getting your finances sorted before you leave is much easier than trying to navigate it from a different time zone.

Keeping track of your income across multiple jobs and locations is already a lot to manage. My Visa Tracker helps you log your specified work days alongside employer details — so when it comes time to reconcile your tax records, you've already got the dates and companies in one place.

Photo by Kelly Sikkema on Unsplash