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ATO FY 2025/26 STAGE 3 ACTIVE
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Work & Holiday (Subclass 462) – Stage 3 Rates FY 2025/26

Work and Holiday Visa (Subclass 462) Tax Calculator

Subclass 462 Work and Holiday visa holders pay a flat 15% tax on their first $45,000 of income with standard marginal rates on earnings above $45,000.

Stage 3 Marginal Rates100% Medicare Exemption Check12% Superannuation Guarantee
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Gross Annual Salary (AUD)

Base salary before tax & superannuation

FY 2025/26 Stage 3
AUD $
$20k$100k$180k$300k
Quick Presets:

Visa Subclass & Nationality

Determines tax residency brackets and Medicare eligibility

Non-RHCA (MES Eligible)

100% Medicare Levy Exemption (MES): As a non-citizen from a non-RHCA country, you can obtain a Medicare Entitlement Statement (MES) from Services Australia and pay 0% Medicare Levy.

Additional Residency & Insurance Toggles

Applied for Permanent Residency (PR)?Subclass 186/189/190/820

Applying for PR with work rights gives you interim Medicare access, removing the MES exemption.

Adequate Private Hospital Cover?Avoids MLS Surcharge

Avoids 1.0% – 1.5% Medicare Levy Surcharge for taxable incomes above $101,000.

Estimated Net Pay

Take-Home Income

Net Take-Home (annual)17% Effective Rate
$43,150/ annual
Medicare Exempt (MES Eligible)0% Levy

You save $1,040/yr ($87/mo) under Category 1 MES.

Gross Salary$52,000
Income Tax (Stage 3)-$8,850
Medicare Levy0% Exempt$0
Total Tax Withheld$8,850
Employer Superannuation12.0%

Paid in addition to gross salary

$6,240

Total pkg: $58,240

Citizen vs. Visa Holder Comparison

AU Citizen / PR

$44,572

Includes 2% Medicare
Visa Holder (You)

$43,150

0% Medicare (MES)

Take-home pay matches standard Australian citizen tax rates (Medicare Levy applies).

OVHC (Condition 8501)Department of Home Affairs Compliant

Compare Approved OVHC Health Cover

Maintain mandatory health insurance for Work Visa (482/485) while claiming 100% Medicare Levy Exemption.

Verified Australian Funds
Bupa AustraliaFast Visa Letter (Condition 8501)
$114/mostarting price
🎉 Save 10% First 12 Months
  • Instant Department of Home Affairs letter
  • No waiting period on emergency dental
  • 24/7 multilingual health advice line
Allianz Care AustraliaGovernment Approved
$108/mostarting price
🎉 Exclusive Student & Expat Rates
  • 100% compliant with visa condition 8501
  • Direct billing at 1,000+ medical clinics
  • Telehealth included at $0 co-pay
nib Health FundsBest Value
$98/mostarting price
🎉 Get $100 Digital Mastercard
  • Simple digital claims via nib app
  • Unlimited emergency ambulance
  • Customizable extras & dental

⚡ Instant digital visa certificate sent to your email in under 3 minutes.

Get Quote with Bupa Australia

How to Claim 100% Medicare Levy Exemption (MES)

Official step-by-step Services Australia checklist

Form MS015
1Prepare Documents

Obtain a certified copy of your passport photo page, current Australian visa grant notice (or VEVO check), and proof of arrival.

2Lodge via myGov

Apply online using your Services Australia / Medicare online account through myGov, or complete Medicare Entitlement Statement (MS015).

3Claim on Tax Return

Once approved (usually 4-6 weeks), enter your MES certificate number under ATO tax return question M2 (Medicare Levy Exemption: 365 days).

💡 Apply for your MES early in June/July to ensure quick ATO processing.Services Australia Official MES Portal
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Official ATO & Services Australia Rules for Subclass 462 (Work & Holiday Visa)

How your visa subclass is treated under Australian tax legislation

Tax Residency Treatment

Flat 15% on $0 - $45,000 ($6,750 max), 30% on $45,001 - $135,000, 37% on $135,001 - $190,000, and 45% above $190,000.

Medicare Levy Exemption (MES) Guidance

Work and Holiday makers from non-RHCA countries (such as the USA, Brazil, China, Indonesia, Vietnam, Thailand) can claim a 100% Medicare Levy Exemption.

Subclass 462 Work & Holiday Visa Tax Rules

The Subclass 462 Work and Holiday visa is available to citizens of partner countries including the United States, China, Brazil, Indonesia, Vietnam, Singapore, Thailand, and Spain.

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1. WHM Tax Brackets

  • First $45,000: Flat 15% tax rate.
  • $45,001 – $135,000: 30% marginal rate.
  • $135,001 – $190,000: 37% marginal rate.
  • Over $190,000: 45% marginal rate.

    #

    2. Medicare Entitlement Statement (MES)

  • Because citizens of the USA, China, Vietnam, Brazil, and Indonesia are not covered by Reciprocal Health Care Agreements (RHCA), Subclass 462 holders from these nations are 100% exempt from the 2% Medicare Levy. Claiming an MES on your tax return saves up to $900 AUD on $45,000 of income.
    Frequently Asked Questions

    Tax & Medicare Questions for Subclass 462 (Work & Holiday Visa)

    Q:How is Subclass 462 taxed compared to Subclass 417?

    Subclasses 417 and 462 share the exact same tax rates under ATO legislation: 15% flat on the first $45,000 and standard progressive rates above $45,000.