If you are studying in Australia and earning income from part-time work, internships, or casual employment, lodging a tax return is an important legal and financial responsibility. Many international students assume they do not need to file taxes because they work limited hours, but in most cases, if you earn income in Australia, you must lodge a tax return with the Australian Taxation Office (ATO). Understanding how to apply for an Australian tax return as an international student ensures you remain compliant with immigration conditions, avoid penalties, and potentially receive a tax refund.
Australia has a structured and transparent tax system. International students are generally treated as residents for tax purposes if they reside in Australia for more than six months and have established a routine life here. However, your residency status for tax purposes may differ from your visa status. The ATO provides a residency tool to help determine your classification at https://www.ato.gov.au/Individuals/Residency-for-tax-purposes/.
This comprehensive guide explains eligibility, required documents, step-by-step application procedures, key deadlines, common mistakes, and tips to maximize your refund.
Do International Students Need to Lodge a Tax Return in Australia?
Most international students who earn income in Australia must lodge a tax return. You are required to file if:
- You earned income above the tax-free threshold.
- Tax was withheld from your wages.
- You worked part-time, casual, or full-time during academic breaks.
- You received government payments or scholarships that are taxable.
Even if your income is below the tax-free threshold (currently $18,200 per financial year), you may still need to lodge a “non-lodgment advice” to inform the ATO that you do not need to submit a full return.
The Australian tax year runs from 1 July to 30 June. Tax returns are generally due by 31 October following the end of the financial year.
Understanding Tax Residency for International Students
Tax residency determines how your income is taxed. The ATO considers several factors, including:
- Length of stay in Australia
- Living arrangements
- Employment situation
- Intention to remain temporarily or permanently
Most international students on a student visa (subclass 500) are treated as residents for tax purposes. If classified as a resident, you benefit from:
- The tax-free threshold of $18,200
- Lower marginal tax rates
- Access to certain tax offsets
For official information on student visa conditions, visit the Department of Home Affairs at https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/student-500.
Step 1: Obtain a Tax File Number (TFN)
Before lodging a tax return, you must have a Tax File Number (TFN). Without a TFN, employers may withhold tax at the highest rate.
You can apply for a TFN through the ATO website at https://www.ato.gov.au/Individuals/Tax-file-number/Apply-for-a-TFN/.
The application process requires:
- Passport details
- Australian address
- Visa information
Your TFN is issued once and remains valid for life, even if you leave Australia and return later.
Step 2: Create a myGov Account and Link to the ATO
The easiest way to lodge your Australian tax return is online using myTax via your myGov account.
Steps:
- Create a myGov account at https://my.gov.au.
- Link your account to the Australian Taxation Office (ATO).
- Verify your identity using your TFN and personal details.
Once linked, you can access pre-filled income information provided by your employer and banks.
Step 3: Gather Required Documents
Before starting your tax return, collect the following:
- Income statement (formerly payment summary)
- Bank interest statements
- Receipts for work-related expenses
- Private health insurance statement (if applicable)
- Details of any government payments
Employers report your income directly to the ATO through Single Touch Payroll (STP), meaning your income information may already appear pre-filled in myTax.
Step 4: Understand Income Types
As an international student, you may have multiple income sources:
- Salary or wages
- Casual or part-time employment income
- Internship stipends
- Bank interest
- Scholarship income (if taxable)
Not all scholarships are taxable. The ATO provides detailed guidance at https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/.
Step 5: Claim Eligible Deductions
One of the most important parts of applying for an Australian tax return is claiming eligible deductions to reduce your taxable income.
Common work-related deductions include:
- Uniforms with employer logos
- Work-related travel expenses
- Union fees
- Home office expenses (if applicable)
- Self-education expenses directly related to your current job
You cannot claim:
- Tuition fees for your primary course of study
- Rent or personal living expenses
- Travel between home and university
Ensure you keep receipts and documentation for all claims.
Step 6: Lodge Your Tax Return Online
Once your information is complete:
- Log in to myGov.
- Access the ATO service.
- Select “Lodge Tax Return.”
- Confirm personal details.
- Review pre-filled income information.
- Add deductions.
- Submit your return.
After submission, you will receive a notice of assessment, typically within two weeks if lodged online.
Step 7: Understand the Medicare Levy
International students are generally exempt from the Medicare levy if they maintain Overseas Student Health Cover (OSHC). If eligible, you must claim the exemption when lodging your return.
For more information on Medicare levy exemptions, refer to the ATO website at https://www.ato.gov.au/Individuals/Medicare-and-private-health-insurance/Medicare-levy/.
What Happens After You Lodge?
After assessment, you will receive:
- A tax refund deposited into your bank account, or
- A notice indicating tax payable
Refund processing times typically range from 7 to 14 days.
Common Mistakes to Avoid
- Forgetting to include bank interest income
- Claiming ineligible deductions
- Missing the 31 October deadline
- Not updating your address or bank details
- Ignoring ATO correspondence
Late lodgment can result in penalties.
Using a Registered Tax Agent
If your situation is complex, you may consider hiring a registered tax agent. Registered agents can be verified through the Tax Practitioners Board at https://www.tpb.gov.au.
Using a tax agent may extend your lodgment deadline beyond 31 October, provided you register before the due date.
Special Considerations for Students Leaving Australia
If you permanently leave Australia, you may still need to lodge a final tax return. Additionally, if you contributed to a superannuation fund, you may be eligible to claim a Departing Australia Superannuation Payment (DASP).
Information about DASP is available at https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/Departing-Australia-super-payment-DASP/.
Frequently Asked Questions
Can I lodge my tax return myself?
Yes, most international students can lodge online using myTax without professional assistance.
Do I need to lodge a return if I earned very little?
If you earned income, you may need to lodge a return or submit a non-lodgment advice.
What if I miss the deadline?
You should lodge as soon as possible to minimize penalties.
Conclusion
Applying for an Australian tax return as an international student may seem complicated at first, but the process is straightforward when broken into clear steps. By obtaining a TFN, understanding your tax residency status, gathering accurate income records, claiming eligible deductions, and lodging through myGov before the deadline, you can ensure compliance and potentially receive a refund. Staying informed through official ATO resources and keeping organized financial records throughout the year will make each tax season easier. Understanding your obligations not only protects your visa status but also helps you build strong financial habits during your time in Australia.
Anjola Adebanjo