• by Rajesh Sharma
• Leave a Comment on Tax Returns for International Students in Australia (2025)

If you’re an international student working or earning money in Australia, it’s important to understand the tax system. After studying for six months or more, you are usually seen as an Australian resident for tax purposes. This means you pay taxes at the resident rates and can take advantage of benefits like the tax-free threshold. This guide is about the 2024-25 financial year, which ends on June 30, 2025. Always check with the Australian Taxation Office (ATO) for details that apply to your situation.

Determining Your Tax Residency Status

Your tax residency depends on how long you study and your situation:

• If you are enrolled in a course that lasts six months or more, you are usually considered an Australian resident for tax purposes. This is true even if you have a temporary student visa, which means you are a temporary resident and don’t need to report most foreign income.
• If your course is shorter than six months and you plan to leave right after, you may be classified as a foreign resident. This means you would pay higher tax rates and not get the full tax-free threshold.
• As a resident, you need to report your Australian-sourced income as well as any overseas work done while in Australia. However, you don’t have to report most other foreign earnings.

If you’re not sure about your status, check the ATO’s residency tests or talk to a tax professional.

Do You Need to Lodge a Tax Return?

Most international students need to file a tax return for the 2024-25 year if:

• Your income was over the tax-free limit of $18,200 (or a lower amount if you weren’t a full-year resident).
• Tax was taken from your pay, even if you earned less than $18,200, because you can claim a refund.
• You had more than one job or started a side business.

If your income was below $18,200, no tax was withheld, and you qualify for non-lodgement, send a non-lodgement advice to the ATO instead to avoid penalties. Non-residents must still file a return if they earned any income in Australia.

If you don’t file on time, you could face penalties, even if you don’t owe any tax.

Tax-Free Threshold and Resident Tax Rates for 2024-25

As a tax resident, you benefit from the tax-free threshold of $18,200 for the full year (prorated if a partial year: $13,859–$18,200). Income above this is taxed at progressive rates:

• $0–$18,200: 0%
• $18,201–$45,000: 19%
• $45,001–$120,000: 32.5%
• $120,001–$180,000: 37%
• $180,001 and over: 45%

These rates exclude the 2% Medicare levy, which applies if your income exceeds $27,222 (but you may be exempt if ineligible for Medicare; see below). Non-residents pay 32.5% on the first dollar up to $120,000, with no tax-free threshold.

Key Dates for Your 2024-25 Tax Return

• Lodgement opens: July 1, 2025.
• Recommended start: Late July 2025, to allow employers time to submit your income data to the ATO.
• Deadline for self-lodgers: October 31, 2025.
• If using a registered tax agent (appointed before October 31), you may get an extension, potentially until May 2026.

Employers must provide payment summaries by July 14, 2025. Lodge early to avoid delays in refunds.

How to Lodge Your Tax Return

You have options for lodging:

• Online via myGov/ATO: Free and straightforward. Link your myGov account to ATO services, pre-filled with employer data.
• Paper form: Download the “Tax return for individuals 2025” from the ATO.
• Tax agent or accountant: Recommended for complex cases; fees are deductible next year. Costs can be claimed as a deduction.

You’ll need:

• Your Tax File Number (TFN).
• Payslips and payment summaries.
• Records of expenses for deductions.
• Bank details for refunds.

If under 18 on June 30, 2025, provide your date of birth on the return.

What to Declare on Your Return

• Australian income: Wages, salaries, business earnings, or short-term overseas work while a temporary resident.
• Foreign income: Generally exempt for temporary residents, but declare if it’s from work performed abroad during your Australian stay.
• Goods and Services Tax (GST): This 10% tax is already included in prices; you don’t declare it separately but pay it on purchases.
• Superannuation: If leaving Australia permanently, you may claim your super after departure, but it’s not part of your tax return.

Deductions, Exemptions, and Medicare Levy

Maximise refunds by claiming eligible deductions (keep receipts):

• Work-related items: Uniforms, tools, travel, or internet/mobile use if job-essential.
• Study expenses: Course materials if directly related to your current employment.
• Tax agent fees: Deductible in the following year.

For the Medicare levy (2% on income over $27,222), apply for an exemption via a Medicare Entitlement Statement if you’re not eligible for Medicare (e.g., with Overseas Student Health Cover). Request a new statement annually.

Potential Refunds or Payments

Many students receive refunds, averaging $2,600, if too much tax was taken from their pay, especially for part-time earnings under $18,200. You can use an online calculator to estimate your refund. If you underpaid tax, such as by claiming the tax-free threshold from more than one employer, you might owe money. The ATO usually processes electronic returns in about 12 days and sends you a Notice of Assessment. If you are leaving Australia for good, make sure to lodge your return before you go or inform the ATO.

Help and Resources

• Free assistance: ATO’s Tax Help programme if income is ≤ $70,000 and affairs are simple.
• University support: Check your institution for tax guidance (e.g., UC or Study Melbourne).
• ATO website: For forms, calculators, and examples.
• If issues arise (e.g., missing deadlines), contact the ATO early to avoid penalties.

Remember, taxes contribute to Australia’s economy, and lodging correctly ensures compliance for future visas. If your situation is complex, seek personalised advice from a registered agent.

FAQs