How to read a payslip in Australia as a working holiday maker

Why do payslips matter for working holiday makers?

Working holiday makers have specific tax and super rules:

• 15% tax rate (different from residents)
• Super at 12% (same as residents from 1 July 2025)
• Working Holiday Maker designation on your tax return
• Medicare Levy exemption when claiming

Your payslip is the evidence that your employer is applying these rules correctly. If they are not, the consequences include underpaid super, incorrect tax withholding, and tax return complications.

Save every payslip. Email them to yourself or save to cloud storage. You will need them for:

• Your annual tax return
• Your DASP super withdrawal claim
• Recovering any unpaid super
• Resolving disputes with employers

What does gross pay show?

Gross pay is your total earnings before any deductions:

• Hours worked × hourly rate
• Plus penalty rates (weekend, public holiday, overtime)
• Plus allowances (uniform, tool, travel)
• Plus any bonuses or commissions

Example: 38 hours × $30/hour = $1,140 gross pay

Check this figure first. If hours or rate are wrong, everything else will be wrong too.

What does PAYG tax withholding show?

PAYG = Pay As You Go. The tax your employer withholds and sends to the ATO:

• For working holiday makers with TFN on file: 15% of gross pay
• Should be approximately 15% of your gross figure
• Higher (30% or 45%) → form was completed incorrectly

Common reasons for incorrect withholding:

• Tax File Number Declaration form not yet processed (45%)
• Employer not registered as working holiday maker employer (30%)
• Wrong residency status selected on the form
• Tax-free threshold incorrectly claimed (too little withheld → future debt)

If your rate looks wrong, get in touch with our team and we will check.

What does superannuation show?

Super should appear as a separate line item on your payslip:

• 12% of gross earnings (from 1 July 2025)
• Paid on top of your wages, not deducted
• Paid into your nominated super fund
• Does not reduce your net pay

If super does not appear or the amount is below 12%, raise it with your employer. Common issues:

• No super at all (illegal for all employees)
• Calculated below 12% (employer using old rate)
• Paid quarterly rather than monthly (legal but means it appears in your fund 3 months later)
• Wrong fund nominated (super going somewhere you cannot access)

What does net pay show?

Net pay = gross pay − tax withheld:

• This is what arrives in your bank account
• Super does NOT reduce net pay (it is paid separately)
• Should match what was deposited

Example: $1,140 gross − $171 tax (15%) = $969 net pay

What about Year to Date (YTD) figures?

Most payslips include cumulative YTD figures:

• YTD gross pay (total earnings this financial year)
• YTD tax withheld
• YTD super (if shown)

Useful for:

• Tracking your annual income
• Estimating your tax return outcome
• Checking against your final income statement

What should you check every pay cycle?

A quick payslip checklist:

• ✓ Hours worked match what you actually worked
• ✓ Hourly rate matches what was agreed
• ✓ Gross pay = hours × rate (plus any extras)
• ✓ Tax withheld is approximately 15%
• ✓ Super appears at 12% of gross
• ✓ Your name spelled correctly
• ✓ Your TFN appears on the payslip
• ✓ Net pay matches what was deposited

If anything looks wrong, address it immediately rather than waiting until tax time. Errors compound over time and become harder to fix later.

What if you do not receive payslips?

Australian law requires payslips to be issued within 24 hours of each pay:

• No payslip = your employer is breaching the law
• Other entitlements may also be at risk
• Keep your own records as evidence
• Get in touch with our team for help

This is one of the strongest signs of an unreliable employer. Take the records you do have and get advice on next steps.