The holders of a Work and Holiday Subclass 462 are eligible to use hospitality work as their specified work which allows them to obtain a further 12 months on their second Work and Holiday visa.

To apply for a second Work and Holiday visa, they must have already completed three months of specified subclass 462 work in northern Australia. This work must have been completed while on their first Work and Holiday visa and must have been undertaken after 18 November 2016 in order to be counted towards their three months’ specified subclass 462 work total.

Specified subclass 462 work is work that is undertaken in a ‘specified’ field or industry in a designated area in northern Australia.  Click here to check the postcode list of designated areas of northern Australia.

All specified subclass 462 work must be remunerated in accordance with the relevant Australian legislation and awards. Voluntary work will not be accepted for the purpose of applying for a second Work and Holiday visa. See Evidence of payment for specified work  for more information.

Approved industries for specified work include:

  • plant and animal cultivation
  • fishing and pearling
  • tree farming and felling
  • tourism and hospitality

Specified work is any type of work described in the list below:

  • tourism and hospitality
    • work in a range of positions where the primary purpose is to directly provide a service to tourists, including tourist guides and operators, outdoor adventure or activity instructors, tourist transport services
    • gallery or museum managers, curators or guides
    • hospitality workers, including a range of positions in hotels or other accommodation facilities, restaurants, cafes, bars and casinos
    • conference and event organisers.

It is really important to note that there is a difference between a Working Holiday (Subclass 417), which are mostly the people from the UK, Ireland, etc. and the Work and Holiday Visas (subclass 462).

The 417 visa holders cannot use tourism and hospitality; they can only use:

  • plant and animal cultivation
  • fishing and pearling
  • tree farming and felling
  • mining
  • construction

The Work and Holiday Visa (462) holders are coming from the following countries:

  • Argentina
  • Bangladesh
  • Chile
  • China, People’s Republic of
  • Hungary
  • Indonesia
  • Israel
  • Luxembourg
  • Malaysia
  • Poland
  • Portugal
  • San Marino
  • Slovak Republic
  • Slovenia
  • Spain
  • Thailand
  • Turkey
  • USA
  • Uruguay

New tax rates apply from 1 January 2017

From 1 January 2017 tax rates are changing for working holiday makers who hold 417 and 462 visas. These rates are known as working holiday maker tax rates.

What you need to do
If you employ a working holiday maker who is in Australia on a 417 or 462 visa, you:

  • must register with the ATO to withhold at the working holiday maker tax rate
  • can visit to check a worker has a 417 or 462 visa using the Visa Entitlement Verification Online service
  • must withhold tax at 15% on income up to $37,000 and apply foreign resident tax rates on income over $37,000

For more information

What happens next
The working holiday tax rates only apply to income earned from 1 January 2017.

If you currently employ working holiday makers, you will need to issue two payment summaries this year:

  • one for the period to 31 December 2016
  • a second for any period to 30 June 2017

Contact ATO – 13 28 76
Between 8.00am and 6.00pm, Monday to Friday.

This information was issued on 19 December 2016, and employers had to set up all of their existing working holiday makers as NEW EMPLOYEES before they could be paid after 1 January 2017.  This is something that will impact on anyone who employed working holiday makers on 1 January.

Information provided by:
Nicola Baker, Migration Agent (MARN 0210839)
PO Box 773, Ravenshoe Qld 4888
M: 0417 929 382