Can an Australian business employ backpackers?
The answer is yes! Assuming the backpacker is travelling on a valid working holiday visa then, yes, any Aussie business can employ a backpacker, full-time or part-time. So the next question is which businesses can employ backpackers; then how, and why.
Backpackers are a hugely important source of labour for Australia. Hundreds of thousands of Working Holiday Visa (WHV) holders are on Australian shores at any one time, and their willingness to do seasonal, casual and lower paid work is a huge benefit to a range of industries – a fact brought into focus when WHV numbers dipped during the pandemic.
Many Australian business owners would be wise to capitalise on this young group of willing workers. But how? In this guide we’ll share all an Australian employer needs to know about getting backpackers working for their business.
Understanding which international visitors you can employ
Not all backpackers in Australia are eligible to work in the country – many are here just to travel or visit someone – so it’s vital that an employer ensures all of their overseas workers hold the correct visa.
First things first: You cannot employ a backpacker on a tourist visa. Depending on their nationality, employable backpackers must hold either a Working Holiday Visa (Subclass 417) or a Work and Holiday Visa (Subclass 462).
These visa holders are collectively known as Working Holiday Makers (WHMs), and as far as an employer is concerned, both 417 and 462 visa holders can be treated the same way.
Which Australian industries benefit most from employing backpackers?
While WHMs have a significant impact on the Australian economy as a whole, these workers naturally gravitate to certain industries.
Given Australian working holiday visas expire after one, two or three years, backpackers don’t have to look too far into the future or concern themselves with silly things like building a career, supporting a family or buying a home.
They only need enough money to get them to the next stop on their adventure, and are often happy to take on the casual, seasonal and minimum wage jobs that Australians are less willing to do.
Aussie industries that rely on backpackers include:
- Agriculture: This work is ripe for the picking for backpackers. Often a seasonal job, a working holiday maker can be picker or farmhand for a few weeks or months then move on.
- Hospitality and Tourism: Casual work in bars, cafes, restaurants, hotels, hostels and tour companies is popular amongst backpackers, who often make the switch from customer to employee.
- Construction: General labourers are always in demand in Australia, particularly in cities, and the often short-term nature of these gigs makes them ideal for backpackers.
- Retail and customer service: When working holiday makers settle in a place for an extended period, they often turn to sales, customer service or fundraising work as a slightly more consistent source of income.
Many more industries employ WHMs in Australia, so if you don’t see yours here, that’s not to say you won’t benefit from backpacker help. If you offer seasonal, casual or otherwise short-term work, backpackers can be perfect workers.
Your responsibilities as a backpacker employer
If you’ve decided you could benefit from employing backpackers, there are a few rules, regulations and responsibilities you need to be aware of.
1. Registering as a Working Holiday Maker employer
If you employ or plan to employ WHMs, you need to officially register as a WHM employer (and before doing that, you need to be registered for PAYG withholding).
Registration is a simple matter of filling out this form. Once registered, you’ll be required to withhold tax at the prescribed Working Holiday Maker tax rates (but more on that in a moment).
2. Minimum wage and Fair Work laws
As of 1 July 2023, the Australian minimum wage was set at $23.23 per hour. This forms the base rate that all backpackers will be entitled to earn, but as any employer will know, the real minimum rate will generally be higher, after applicable awards and casual rates are applied. The minimum wage for a 21-year-old casual construction labourer, for example, is $31.60 per hour in FY23/24.
Like all employees in the country, Working Holiday Makers are covered by the Fair Work Act. The Act describes the minimum pay, rights and working conditions to which all workers in Australia are entitled. It is designed to ensure people aren’t overworked, underpaid or put in any danger at work.
It’s important to understand your responsibilities as an employer. You can read more about how the Fair Work Act applies to WHM workers here.
3. Tax and superannuation
Backpackers are taxed differently to other employees. Having registered as a WHM employer, you are required to withhold 15c for each $1 they earn up to $45,000.
If the WMH earns more than $45,000, or if you haven’t yet registered as a WHM employer (which you need to do at your earliest convenience), you should withhold 32.5c for each $1 earned up to $120,000. WHM tax rates rise to 37% at $120K+ and 45% at $180K+. You are required to give a payment summary to all WHMs you employ.
Perhaps surprisingly, WHMs are entitled to the same superannuation benefits as any other employee. They can choose to get this super paid out – at a rather high tax rate – as they leave the country.
How to attract backpackers to your business
You’ve got a need that you believe a Working Holiday Maker can fill. So how do you attract backpackers? Here are a few effective ways to bring a bit of international flavour to your business.
1. Look in the right places
While you might find a few Working Holiday Makers if you post your job on a job site like LinkedIn, Seek or Indeed, there are far more targeted and effective ways to gain the attention of backpackers. Backpacker Job Board will deliver your job opportunity direct to backpackers who are looking for work at that exact moment, and is a great place to start your search. You could also post your job in backpacker Facebook groups, or go analogue by putting flyers up in local hostels.
2. Offer good pay and conditions
While Australia’s national minimum wage is the highest in the world, by offering even better pay you’ll attract more and better workers. There are other ways to lure backpackers in, like letting them choose their own hours, or offering free meals, accommodation or local adventures.
3. Create a fun culture
Backpackers are on a (working) holiday, so they’ll be looking to enjoy themselves, and if it doesn’t affect their productivity, what’s the harm? A bit of fun, healthy competition could even increase productivity, like a prize for the best fruit picker. Friday knock-offs and group dinners are other ways to build a good team culture and atmosphere.
4. Be inclusive and culturally sensitive
Some Australian industries, such as agriculture and construction, have a rough and ready reputation. Your international workers will come from a wide array of cultural backgrounds, and you need to ensure all feel welcome and safe at work. Something as simple as accidentally serving the wrong food – e.g. pork to a muslim or beef to a hindu – can do real damage your reputation as an employer.
Are you ready to put backpackers to work?
Working Holiday Makers are a goldmine of labour for many Australian businesses, as they can plug those gaps that often prove so hard to fill. If you’ve got any further questions – be sure to check out our FAQs.
Ready to get the help you need to grow your business? Post your job on Backpacker Job Board today!
