Working holiday makers (WHM) are important to Australia’s economy. They are an essential source of labour especially in industries that rely on seasonal employment. Australia employs approximately 100,000 working holiday makers each year.
What is a working holiday maker?
Working holiday makers are temporary visitors to Australia. The Working Holiday Maker Visa Program allows adults to have a 12-month holiday while undertaking short-term work or study. WHM visa holders are able to access up to three Working Holiday Maker Visas, provided they meet age requirements and undertake some specified regional work.
Working holiday makers can work in any occupation or industry in Australia, generally for up to six months with one employer.
How to employ a working holiday maker
Employing working holiday makers is beneficial to employers and relatively easy to do. Working Holiday Maker Visa holders don’t need to be sponsored, occupation lists don’t apply, and they can work full time anywhere in Australia. As an employer, all you need to do is ensure you meet all obligations set by Australian workplace laws.
Meeting you Employer Obligations
Employers of WHM visas must meet all obligations under Australian workplace laws including paying at least minimum wage and providing workers with a safe and healthy working environment.
When employing working holiday makers, employers must:
- Ensure the Working Holiday Maker visa holder has a valid visa with the right to work in Australia
- Register as an employer of working holiday makers. To register as an employer of working holiday makers, employers must first be registered for PAYG withholding.
- Keep track of the employee commencement date to ensure they don’t exceed the six-month work limit with the employer (exceptions apply where the employee works for the same employer but at an alternate location)
- Comply with tax obligations such as deducting tax from the employee’s wages (employees must have a tax file number) and paying it on their behalf to the Australian Taxation Office (ATO)
- Pay the employee superannuation the same as any other Australian employee. Working holiday makers can apply to have this superannuation paid back to them as a ‘departing Australia superannuation payment’ when they leave Australia.
How to register to employ a working holiday maker
Before making your first payment to an employee who is on a Working Holiday visa (subclass 417) or a Work and Holiday visa (subclass 462), you must register as an employer of a working holiday maker, failing to do so may result in penalties.
Before you register as an employer of a working holiday visa maker there are some important pre-requisites.
- Your business must have an active Australian Business Number (ABN).
- You must be registered for Pay As You Go (PAYG) withholding. This essentially means you’re set up to deduct tax from your employees’ wages.
- It’s essential to use the Visa Entitlement Verification Online (VEVO) service to confirm an employee’s eligibility on a subclass 417 or 462 visa.
The Registration Process
If you have an ABN and PAYG withholding:
- Online Form: The quickest way is the online Working Holiday Maker Employer Registration Form (found on the Australian Taxation Office website).
- Tax or BAS Agent: Your agent can complete the online form on your behalf or help with other registration options.
- Phone: Contact the ATO business line to register if you’re an authorised contact of your company.
If you don’t have an ABN, but have PAYG withholding:
- Online Form: You can still use the online Working Holiday Maker Employer Registration Form.
- Phone: Call the ATO business line as an authorised contact.
- Paper Form: Download and complete the “Application to register a PAYG withholding account” form.
Additional Notes for Branches:
If your business is a branch of a parent company and you want to specifically register the branch:
- Download Form: Get the “Application to register a GST or PAYG withholding branch” form.
Withholding tax from a working holiday maker.
Once you register as an employer of working holiday makers, you must withhold tax for them. Rates vary depending on the amount earned. Foreign resident tax rates also apply to income earned over $45,000.
Supperanuation for Working Holiday Makers
Working holiday makers are entitled to superannuation contributions (like a retirement fund) if they meet eligibility requirements. Employers must contribute at the standard rate for eligible WHM employees. We recommend informing them that Working holiday makers can apply to have their superannuation paid back if / when they depart Australia after their working holiday is over.
Who is eligible for the Australian Working Holiday Maker Visa Program?
The Working Holiday Maker Visa Program includes over 40 countries. In order for an individual to be eligible for a Working Holiday Maker Visa they must meet the following basic eligibility requirements:
- Be 18 to 30 years of age (or 35 years old for some countries)
- Have a passport from an eligible country or jurisdiction
- Must not be accompanied by dependent children
- Meet the health and character requirements
More Information About the Working Holiday Maker Visa Program
For more information about employing working holiday makers or the Working Holiday Visa Program, contact the experienced team of registered migration agents at Visa Solutions Australia. Book a consultation.
