Everything you need to in the first days in Australia: Minimum wage, TFN, ABN, Super, RSA and White Card explained. Must read for newbies!
Hello Guys,
this post is especially relevant if you’re already in Australia with working holiday visa. It’s jam-packed with knowledge bombs. But there’s no need to over-complicate things like in any other blog post I’ve seen, showing you totally irrelevant information.
I will try to keep it as simple and relevant as possible. If you still have questions, comment down below or contact me and I will help you!
Make sure you check the first part of this series to get your working holiday application process started
Overview of your working holiday journey
- Part 1 is all about visa requirements and eligibility for your working holiday in Australia (read before coming to Australia)
- >>Part 1.1 I lead you step-by-step with screenshots through the official working holiday visa application!
- Part 2 is all about relevant working terms to get started in your first days in Australia. I show you Australia’s minimum wage, what TFN, ABN, RSA, SUPER etc. is and where to apply in order to work legally in Australia.
- Part 3 is all about pay rates and work. I show you my payslips, what I earned, and you can too in 2024! I show you all special occasions where you can earn more money!
- Part 4 is all about finding typical backpacker jobs and pay rates. I show you all relevant ways, platforms, and websites where you can find jobs and as well as typical pay rates!
- Part 5 is all about extending your working holiday visa in Australia and the required 88 days of specified work! (Farm work)
Minimum Wage in Australia (updated June 2024)
Update Australia’s minimum wage and pay rate!
>>Breaking: From 1st July 2024 the new minimum wage (and therefore the hourly pay rate) will be $24.10 for everybody working in Australia. Adjust the pay rate for casual jobs accordingly (+25% load = $30.13).<<
Let’s start with the most exciting one in Down Under: Australia’s Minimum wage!
Australia’s minimum wage is pretty sweet—it’s one of the highest in the world. As of May 2024, you’re looking at $23.23 an hour or $882.80 per 38 hour week in New South Wales (Sydney) before taxes. We come to taxes for backpackers in a bit, don’t worry.
Unfortunately, the $23.23 applies only once you are 21 years old. So don’t be surprised to see lower rates for 18-20 year old backpacker. Especially in the service industry (waiters etc.) some employers use the smaller minimum wage.
But hang on, if you’re doing casual work for instance in New South Wales (NSW), you may get a minimum 25% casual job load increase to around $29.03. This is because casual workers don’t commit to the company and work always on demand! Basically, you can expect anything from $29-30 per hour as basic rate!
Just remember, these rates vary depending if you work casual or not and the industry you are working in. Just never accept less than minimum wage, at the very least! I would say as a rule of thumb never accept less than $25 per hour, especially nowadays!
Speaking about the term “casual jobs”…
Casual jobs in Australia: Payday, TFN, ABN, SUPER, RSA, White Card explained
Almost every backpacker on a working holiday visa and student visa in Australia are doing a casual jobs. That basically means that neither you nor the employer have a commitment to the employment. Thus, the employer can fire you anytime and don’t have to pay you something in case of sickness or any other circumstances.
However, like said before, you will get paid 25 % more (typically $30 p. h. ) because of that fact, and you can change your job from one day to another without any hassle.
You still will make a contract with the employer stating that you work on casual basis. Don’t worry about getting fired and all that stuff. It’s just to make it easier for you and your employer without being locked-in in a contract.
You should always prefer to work on a casual basis and stay flexible!
Payday – when do you get paid?
Unlike in Europa, in Australia payday is most common on a weekly basis! Some employers pay every two weeks called “fortnightly”, but it’s communicated before and more the exception to the rule.
For cash in hand jobs, you will be paid directly after the work, unless previously agreed something else. For safety reasons, you should agree two get paid at least every second day to avoid scammers and people taking advantage of you!
Working Cash in Hand
In Australia, it’s common to work “cash in hand” meaning you’re paid in cash immediately after completing a job, typically on the same day.
These casual jobs are usually offered by private individuals or from on-demand sectors like hospitality and construction seeking short-term assistance without bureaucratic hurdles. Common cash-in-hand jobs include dishwashing (kitchen hand), construction labor, landscaping, waiting tables, and general labor.
Cash in hand job’s payment can vary and is negotiable to a certain point. Look out for cash in hand offers especially on gumtree.com.au as it’s the most flexible way of working in Australia.
Many folks on tourist visa do cash in hand jobs to maintain themselves in Australia and safe some money for further travels.
Working on TFN
The first thing you do once you arrive in Australia is obtaining your TFN (Tax File Number). Typically taking up to 28 days to process, though often received within 1–2 weeks. Apply for it here:
https://www.ato.gov.au/Individuals/Tax-file-number/Apply-for-a-TFN/
Simply select “foreign passport holders” and complete the process with your details. For your address, use the hostel’s address or your current residence. You can pick it up there, even if you don’t stay there anymore. And don’t worry! You can still work before receiving your TFN, just ensure you never pay more than 15% taxes, as sometimes they mistakenly overcharge. Always check your payslips! See my payslips here!
Working on ABN
ABN stands for Australian Business Number, allowing you to offer services and issue invoices as a recognized business entity (self employed).
Some skilled working holiday makers and students opt for working on ABN due to its fast and straightforward process.
Some job agencies may even require an ABN to hire you. Essentially, you register as a “sole trader” for a specific sector, such as construction or hospitality. I highly recommend registering, just in case! Register here:
https://www.business.gov.au/registrations/register-for-an-australian-business-number-abn
You should receive your ABN number within a day, even minutes of completing the process.
Keep in mind, you still need to apply for a TFN beforehand. Additionally, while working on ABN exempts you from paying taxes. You’re required to set aside 15% of your income for tax purposes and lodge it when you file your tax return. Moreover, you won’t receive superannuation payments when working on ABN.
There are rumors that when working on ABN, you don’t need to pay taxes until you earn $18,200. However, this applies only to permanent residents and students, not working holiday makers (anymore).
Backpackers on a working holiday visa always pay a flat 15% tax rate, regardless of earnings. In this case, as mentioned earlier, you need to reimburse 15% of your total income earned through ABN when filing your tax return.
Super
Superannuation, or “Super” is a retirement savings fund in Australia.
Employers contribute a percentage of your earnings (usually 9.5%) into your super fund for every hour worked on a TFN basis.
They are obligated to make super contributions once you surpass a certain earnings threshold, which is around $400 a day.
I highly recommend opening a super account as soon as possible. By the end of your working holiday, you’ll accumulate a significant amount in your super account that you can withdraw and use for your travels! I had Cbus Super fund. There are many others.
RSA and RSG/RCG
RSA (Responsible Service of Alcohol) and RSG/RCG (Responsible Service of Gambling/Responsible Conduct of Gambling) are required certifications in the hospitality sector.
The purpose is educating you on responsible alcohol service (RSA) and gambling environments (RSG/RCG). The latter certificate name varies by state.
I recommend obtaining both certifications for maximum flexibility. You can complete the certificates through a one-day face-to-face course or online, with online options generally being cheaper but taking longer.
Ensure you choose reputable sources for online courses, and consider consulting for guidance.
White Card
A White Card is mandatory for those who want to work in the construction industry. Similar to RSA, you can complete a one-day course or opt for an online course.
I recommend choosing the online option, it’s just cheaper. As with RSA, ensure you to choose official providers for online courses, as there seem to be many scams.
The cheapest White Card online course during my working holiday was in Queensland, as you can see above!
Taxes working holiday makers and students
In Australia, working holiday backpackers on any subclass pay a flat tax rate of 15% for every dollar earned up to $45000 with TFN (updated Mai 2024). It’s as simple as that.
In your payslips you will find an acronym PAYG (Pay As You Go) that means that the 15% are already included from your employer, and you don’t need to do anything! Back in the day, Australia had a tax-free threshold for backpackers till $18,200, which doesn’t apply anymore! So yes, it used to be different in the past, but not anymore, so don’t believe these myths.
If you earn more than $45000, you automatically fall into the following tax brackets from the first dollar you earn above $45,000:
- $0 – $45000: 15% on every dollar
- $45001 – $120,000: A minimum of $5,550 AUD plus 32.5% on every dollar
- $120,001 – $180,000: A minimum of $22,775 AUD plus 37% on every dollar
- $180,001 and above: A minimum of $56,075 AUD plus 45% on every dollar.
Tax return and lodging
The Australian financial year runs from 1st July to 1st June of the following year. I highly recommend always to lodge your taxes as you will definitely get something back!
Tax returns can be lodged at the ATO website any time from 1st July to 31st October, for the previous financial year.
If you leave Australia permanently before 30 June, you can lodge your tax return early by paper. Processing times can take up to 50 business days.
You can lodge the taxes once you are outside Australia as everything is online through the ATO website! Easy!
Most common casual jobs for backpacker and students
The most common jobs for girls in cities:
- Waitress
- Traffic controller
- Admin/Office
- Event helper
- Door-to-door Sales
- Uber Eats driver (by E-bike)
- Receptionist
- Factory worker
The most common jobs for boys (blokes in Australia) in cities:
- All sort of construction jobs (residential, commerce, scaffolding, demolition etc.)
- All sort of Mechanic (cars, bikes etc.)
- Warehouse labourer
- barman
- Landscaping
- Event labourer
- Uber Eats driver (by E-bike)
The most common jobs in the outback:
- Any kind of farm work
- Roadhouses and hotels
- Solar Farm
- Mining industry
- Fishing industry
Overview of your working holiday journey
- Part 1 is all about visa requirements and eligibility for your working holiday in Australia (read before coming to Australia)
- >>Part 1.1 I lead you step-by-step with screenshots through the official working holiday visa application!
- Part 2 is all about relevant working terms to get started in your first days in Australia. I show you Australia’s minimum wage, what TFN, ABN, RSA, SUPER etc. is and where to apply in order to work legally in Australia.
- Part 3 is all about pay rates and work. I show you my payslips, what I earned, and you can too in 2024! I show you all special occasions where you can earn more money!
- Part 4 is all about finding typical backpacker jobs and pay rates. I show you all relevant ways, platforms, and websites where you can find jobs and as well as typical pay rates!
- Part 5 is all about extending your working holiday visa in Australia and the required 88 days of specified work! (Farm work)
What’s next in your journey?
For working holiday starters:
- Apply for the working holiday maker visa subclass 417 (usual approval time 1 min – 14 days) or 462 (usual approval time at least 14 days due to further requirements)
- Provide further details if necessary to get the application going (health examination etc.) in your immigration account (ImmiAccount)
- Get credit cards, especially a WISE account (Australian bank account) and check passport validity! (min. 2 weeks – 1 month before you plan to flight)
- Book your flights (AFTER received approval letter from immigration)
- Packing list 2024 (Coming soon)
- Get travel insurance before you fly (SavetyWing or Heymondo)
- Get an Onward ticket ALWAYS! (24-48h before your flight, evidence of leaving the country you enter). For working holiday Australia visa holders, it’s NOT necessary.
- Book your accommodation via hostelworld to get to know people quickly. I recommend the first two weeks at the same spot
- Job hunting and other bureaucratic stuff (once in Australia)
- Open up your US LLC to get your Freelancer business started!
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