How Tax Estimate is calculated for part-year resident Working Holiday Maker?

Lodgeit’s calculation also counts tax for Working Holiday Maker (WHM).

If the resident taxpayer is a working holiday maker at any time during the year of income:

(a) Count the taxpayer’s working holiday taxable income for the year of income as the first parts (starting from $0) of the taxpayer’s ordinary taxable income for the purposes of the table in clause 1; Income Tax Rates Amendment (Working Holiday Maker Reform) Act 2016, Clause 4.

A working holiday maker earned $20,000 in July and August 2019. In September 2019 she became a resident. Then she earned $70,000 in the rest of the financial year.

The tax payable calculated as below:


Taxable IncomeTax RateTaxComment
$1- $20, 00015%$3, - Working holiday makers
$20.001 - $37,00019%$3,23019% applied since the first part of the income exceed the tax free threshold $18200
$37,001 - $90,00032.50%$17,225Marginal rate
Total Tax Payable

Note: If the you find LodgeiT calculation is different, after about two weeks ATO will send the Notice of assessment with correct calculation which will also be visible in LodgeiT.