Tax requirements in Australia

If you're an international student or worker in Australia, it’s important to understand your tax obligations.

If you’re earning income from part-time work, a scholarship, or a paid internship, you might need to lodge a tax return at the end of the financial year.

This guide covers everything you need to know about tax in Australia, from obtaining a Tax File Number (TFN) to lodging your tax return.

understanding your tax requirements in Australia

Understanding the Australian tax system

The Australian financial year runs from the 1st of July to the 30th of June. During this time, any income you earn is subject to taxation, and you may need to lodge a tax return with the Australian Tax Office (ATO). The amount of tax you pay depends on whether you are considered a resident for tax purposes.

Residents for tax purposes usually pay lower tax rates and can claim the tax-free threshold of $18,200 per year. Non-residents are taxed at a flat rate from the first dollar earned, with no tax-free threshold.

Even if you hold a temporary visa, you might still be considered an Australian tax resident. This depends on factors like how long you have lived in Australia and whether Australia is your main place of residence. You can use the ATO's residency tool to check your status.

Getting a Tax File Number (TFN)

A Tax File Number is a unique identification number used by the ATO to track your tax and superannuation records. It is not compulsory to have a TFN, but without one, you can’t lodge your tax return online, and you may be taxed at the highest rate.

International students and temporary visa holders can apply for a TFN online through the ATO website. The application is free, and processing can take up to 28 days.

Do I need to lodge a tax return?

The ATO's helpful tool can help determine if you need to lodge a tax return. You must lodge a tax return if you were an Australian resident for tax purposes during the last financial year, and had tax withheld from payments made to you.

You don’t need to lodge a tax return if you earned below the tax-free threshold and didn’t have tax deducted from your wages. Instead, you may need to submit a Non-Lodgment Advice form to the ATO.

How do I lodge a tax return?

Tax returns can be lodged from 1 July to 31 October each year. There are three main ways to file:

Online via MyGov

The easiest and fastest way to lodge a tax return is through MyGov, which links to the ATO. Certain details in the tax return, such as income and tax withheld, will have already been filled in by your employer. Refunds are usually processed within two weeks.

Through a registered tax agent

If you need assistance, a registered tax agent can help lodge your return correctly. Agents charge a fee, but their services are tax deductible in the next financial year. Using an agent extends your deadline beyond 31 October.

Paper lodgement

You can request a paper tax return form from the ATO and mail it in, but processing takes much longer - potentially up to 50 days.

Never lodged a tax return before? The ATO website has plenty of helpful information to give you a hand with your first lodgement.

Tax deductions for international workers

Claiming tax deductions can help to reduce your taxable income, meaning you may end up paying less tax or receiving a higher refund. You might be eligible to claim certain work expenses as deductions. Some examples of deductions you may be able to claim include uniforms, professional development courses, internet, phone, and home office costs (if you work remotely).

For a full list of deductible expenses and information on how to claim, visit the ATO's deductions guide.

Avoiding tax scams

Be careful of tax scams - someone impersonating the ATO via email, phone, or text. The ATO will never ask for payment via gift cards or threaten you with immediate arrest. If in doubt, contact the ATO directly.