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A working holiday maker on a second or third year visa is taxed at the same working holiday maker rates as on the first year visa: 15% on the first $45,000 of income. The visa year does not change the rate.
The biggest mistake on second and third year visa returns is assuming the tax situation is exactly the same as the first year. In several specific areas, it is not.
What is the 15% rate still applies on every visa year?
The working holiday maker tax rate of 15% on the first $45,000 (and 30% above that, up to $135,000) applies whether you are on a first, second, or third year subclass 417 or 462 visa. The rate is tied to the visa subclass, not to how long you have been in the country. Returning to Australia for a second or third year does not move you onto resident tax rates unless your overall residency circumstances pass the ATO tax residency tests.
See our article on the backpacker tax rate for the full bracket structure.
When tax residency can change on a second or third year
Tax residency for ATO purposes is not the same as immigration residency. A working holiday maker who has been in Australia continuously for an extended period, has set up a stable home, kept the same job for a long time, and built ongoing ties to Australia may pass the residency tests even on a working holiday visa. If residency status changes, the tax brackets change, the tax-free threshold of $18,200 may apply, and refunds can be substantially larger.
The residency tests are complex and case-specific. They take into account where you live, where you work, what assets you have, family ties, and intentions. See our article on tax residency for working holiday makers for the detailed criteria. Our team reviews residency on every return where the working holiday maker has been in Australia long enough that the question realistically arises.
Do you need a new TFN for a second or third year visa?
No. Your TFN is permanent and lifetime, and the same TFN applies on every visa year. See our article on whether you need a new TFN on a second visa for the full detail.
What about ABN and superannuation across visa years?
Both ABN and super carry across visa years:
- Your ABN remains active unless you cancel it. If you used an ABN during the first year visa, it can continue into the second year visa, but the business activity codes and registered details should be reviewed if your work type has changed.
- Your super contributions from the first year visa stay in the fund. They can either be left until you finally depart Australia for good (at which point a DASP is lodged), or, if you have already departed and returned on a new visa, the timing of DASP changes.
If you took DASP after your first visa and then returned to Australia on a second year visa, you cannot retroactively undo the DASP. The super that was withdrawn is gone, and new super contributions start fresh on the second visa.
What is the 88-day and 179-day work requirements?
To qualify for a second year working holiday visa, you must have completed 88 days of specified work in a regional area during your first visa. For a third year visa, an additional 179 days are required during the second visa. These are immigration requirements, not tax requirements, but they create tax records because:
- Each employer must have your TFN on file
- The work is reported to the ATO under Single Touch Payroll
- Your payslips serve as evidence of the days worked for immigration purposes
Keeping clean records of every regional work employer is essential not just for tax but for the next visa application.
How does our service handle second and third year visa returns?
For working holiday makers on a second or third year visa, our team:
- Reviews tax residency against the full period of time in Australia
- Reconciles income across the combined visa years if you have transitioned mid-financial-year
- Manages DASP timing across visa transitions
- Reviews ABN registrations and business activity codes for continued accuracy
- Identifies any deductions specific to regional work, including travel and accommodation in some cases
A second or third year visa return is rarely just a copy of the first year return. Get in touch with our team for a return that reflects the full picture.