What Do I Need to Know About Tax as an International Student in Australia?

Your guide to tax time as an international student studying in Australia

If you’ve just moved to Australia or it’s your first time doing taxes here as an international student, it can be a little overwhelming or confusing. Don’t worry, we can help. 

The Australian financial year runs from 1 July to 30 June the following year. We have all you need to know about international student tax returns, visa tax rates and meeting the submission deadline

Do international students have to pay tax?

If you’re an overseas student and enrolled to study in Australia in a course that lasts six months or more, you’re considered an Australian resident for tax purposes.

According to the Australian Tax Office (ATO), by residing in Australia for over six months then your routines and behaviour are consistent with a person living in the country for tax purposes.

If you’re not sure if you’re a tax resident or not, you can get in touch with a registered tax agent or check out the ATO’s website for more info.

What happens if you’re a tax resident in Australia?

If your taxable income is $18,200 or below, you fall under the tax-free threshold and you won’t have to pay any income tax for the year ending on June 30.

If you earned less than $18,200 in the year and your employer had withheld tax from your payslip, you will be able to claim a tax refund for the year ending June 30th.

If your employer didn’t take out enough tax from your pay check or you have other taxable income and owe tax, you must file a return and pay what you owe.

To lodge a tax return, head to the ATO website. 

The best way is to use the Immigration and citizenship Website's Visa Entitlement Verification Online (VEVO) service. This service allows you to check the status of your visa and any working conditions associated with it, providing clear information about your work entitlements. 

What do I need to lodge an international student tax return?

To lodge a tax return, you’ll need a TFN (Tax File Number). Without a TFN, any income received, including bank account interest, may be taxed at the highest rate. It’s best to get your TFN before you start working because it can take a while for it to get approved.

What do international students need to declare?

As an Australian resident for tax purposes, you must declare income you earn anywhere in the world in your Australian tax return.

You can learn more about how much of your foreign and worldwide income will be taxed in Australia through the ATO website.

To file an Australian tax return there is typically only one paper form you’ll need or one online form on the ATO website to fill out – the Tax Return for Individuals. Make sure you have these items on hand:

•  Your TFN (Tax File Number)
• Your passport
• Your payslips: make sure you keep your final payslip from each job, as this is the most important. If you are still working, you will receive a PAYG payment summary from your employer after June 30th. This details the amount you earned and the amount of tax you paid.
• Expense receipts: receipts for anything work related like your uniform, tools, equipment or courses

Make sure you file your tax return by the deadline of October 31st. Make sure you file before this date after the end of the Australian tax year on June 30th.

International students in Australia can set up a MyGov account and apply through myTax when in Australia. You can also use tools like myDeduction to keep your records in one place. For extra help you can view ATO forms and instructions or contact a tax professional for personal assistance.

What types of income are included in my return?

You need to show all the taxable income you got in the financial year. You can generate income from several sources like:

• Wages and salaries as a part-time, full-time or casual employee
• Income from bank interest
• Bonuses and allowances
• Gratuities and tips earned while working
• Dividend income
• Income as an independent contractor
• Capital gains through the sale of assets
• Government allowances including Austudy payments, Youth Allowance, Newstart Allowance, etc
• Business income
• Distributions received as a partner in a partnership

What self-education costs can I claim?

If you’re working and taking a course in Australia to boost your skills, you can get some money back for you study costs if it’s related to your job.

You can also claim the costs of your textbooks, travel costs, stationery, course fees and items like tables, laptops and printers.

For more information on lodging your tax return as an international student, head to the ATO website.

This article does not constitute personal financial advice. Before acting on any information in this article, you should consider your money goals and financial situation to ensure it’s appropriate to you.