Backpacker tax: update

Workers now under working holiday visas are classed as non-residents for tax purposes.

Backpackers working in Australia are now subject to a tax of 15 cents for every dollar of income earned up to $37,000, with foreign resident tax rates applying from $37,001.

In addition, working holiday visa holders’ superannuation funds are to be taxed at 65 per cent from July 1, up from 38 per cent.