Tax for visa holders: residency, WHM exceptions and departure checks

Start with tax residency, not six months

The ATO uses the resides, domicile, 183-day and Commonwealth superannuation tests. The 183-day test has exceptions, and someone can be a resident for less than six months. A citizen overseas can be a foreign resident; a temporary visa holder can be an Australian resident for tax purposes. Do not infer status solely from a visa or an arrival date.

A “temporary resident” under tax law is a further category with its own conditions, including spouse-related conditions. It can change the treatment of foreign income even when you are an Australian tax resident. Keep a dated travel/residence history and use the ATO guidance or individual advice where the answer is unclear.

Use the income year that you are reporting

These are marginal rates, excluding offsets and Medicare. The $18,200 threshold assumes full-year resident treatment; part-year residency can change it. The 2026–27 reduction to 15% does not apply to a 2025–26 return. The ordinary foreign-resident schedule starts at 30% up to $135,000, then 37% to $190,000 and 45% above that; special income categories can differ.

WHM decision tree: three questions

1. Did you earn working-holiday-maker income on a subclass 417/462 or relevant associated bridging visa? Identify the income and dates, especially if your visa changed.
2. Were you an Australian tax resident? Most people here primarily for a working holiday are not, but individual facts matter.
3. If resident, were you a national of an eligible non-discrimination-article treaty country? The ATO lists Chile, Finland, Germany, Israel, Japan, Norway, Turkey and the United Kingdom, with relevant commencement dates. Eligible resident nationals may be assessed at resident rates. Nationality alone is insufficient.

The usual WHM schedule taxes the first $45,000 of WHM taxable income at 15%, the next band to $135,000 at 30%, then 37% to $190,000 and 45% above. It is not one flat rate on all income. Employer registration affects withholding; it does not override your correct final assessment. Mixed income, changing status and treaty cases need ATO instructions rather than one blanket calculator selection.

Worked example: assume $55,000 is entirely WHM taxable income, you are a foreign resident all year, and have no other income, offsets or study debt. Tax is $45,000 × 15% + $10,000 × 30% = $9,750. The foreign-resident period is exempt from Medicare levy. Net after this income tax is $45,250. A resident treaty-national case can produce a different result.

Keep Medicare entitlement and levy separate

A foreign resident for tax purposes is exempt from Medicare levy for the foreign-resident period; that does not itself decide access to Medicare. For a tax resident claiming exemption because they were not entitled to Medicare benefits, a Medicare Entitlement Statement (MES), the relevant days and dependant conditions matter. An MES does not automatically refund 2%: an eligible dependant can prevent that exemption. Medicare levy surcharge is a different calculation.

TFN and withholding are not work permission

Permission to work comes from your visa conditions. Apply for a TFN through the correct ATO route and complete the employer declaration accurately. If you declare that you have applied or enquired about an existing TFN, the ATO permits a 28-day period to provide it. Without a valid exception, no-TFN withholding is 47% for resident employees (including Medicare levy) or 45% for foreign-resident employees. The return reconciles withholding against actual liability; a full refund is not promised.

Before departure: tax and super are separate tasks

• Check whether tax residency ends and whether foreign income, capital gains or continuing Australian income create obligations. Departure alone is not the whole test.
• Early lodgment is only available in specified circumstances. Use the ATO departure instructions before assuming you can file before 30 June. Otherwise lodge from overseas when due.
• Keep access to myGov, records and contact details current. Check accepted refund arrangements with the ATO.
• DASP is separate from your income-tax return. It depends on departure, ceased visa, citizenship/residency and fund component conditions. Our DASP guide covers the 0%, 35%, 45% and WHM 65% component treatment.

Move from your tax position to filing

Once these questions are settled, use the first-return checklist to reconcile tax-ready statements and deductions. Employer SG is 12% from 1 July 2025; it is retirement saving, not ordinary take-home wages. Our 2026–27 calculator is a limited planning estimate, not a refund calculator.

Common questions

Sources and scope

Checked 30 September 2026. This is general information, not an individual tax, financial, employment or migration assessment. Follow the linked official instructions for your circumstances.

• ATO: tax residency tests
• ATO: resident rates by year
• ATO: Addy decision and WHM treaty-national conditions
• ATO: foreign and temporary resident income
• ATO: Medicare exemption conditions
• ATO: TFN declaration and no-TFN withholding
• ATO: returns and departure options
• ATO: super guarantee