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Home/Tax Guides/Are you entitled to sick leave and annual leave on a working holiday visa?
23 September 2024·4 min read

Are you entitled to sick leave and annual leave on a working holiday visa?

Working holiday makers are entitled to leave in Australia, but how much depends on how you are employed. Here is what the rules say.

Working holiday makers in Australia are entitled to the same leave provisions as any other employee, but the entitlements depend heavily on whether you are employed as a casual, part-time, or full-time worker.

Full-time and part-time employees

If you are employed as a full-time or part-time employee, you accrue annual leave at the rate of 4 weeks per year of full-time service (pro-rated for part-time). You also accrue personal and carer's leave (commonly called sick leave) at 10 days per year of full-time service. These entitlements are set by the National Employment Standards and apply to all employees regardless of visa type.

If you leave a job before using your accrued annual leave, you are entitled to have it paid out to you. This is sometimes called a leave loading payout and should appear in your final pay.

Casual employees

Casual workers are not entitled to annual leave or sick leave in the same way. Instead, casual employees receive a 25% casual loading on their hourly rate, which is intended to compensate for the lack of leave entitlements. If you are hired as a casual, your rate should be at least 25% higher than the equivalent full-time rate under the applicable award.

How to work out which category you are in

Check your letter of engagement or employment contract if you were given one, or ask your employer. If you are on the payroll with regular shifts and a set schedule, you may be permanent part-time rather than casual, even if the terminology used is loose. The classification matters for your leave rights.

Leave accrual and tax

Annual leave when taken or paid out is taxed in the same way as ordinary wages. Any annual leave payout you receive when leaving a job should be declared in your tax return for the year it was received.

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