Your First Tax Return in Australia as an International Student: Step by Step ?

Here's a scene that plays out every year around the end of October. A student opens their email, sees a message about tax deadlines and thinks: "Do I actually have to do this? I only worked a few shifts at a cafe."

The short answer is probably yes, and the good news is it often means a refund. But the rules around residency, thresholds and Medicare can be confusing if it's your first time, and it's easy to make mistakes that cost you money.

Here's how Australian tax works for international students, in the order you'll actually do things.

This is general information, not tax advice. Check the Australian Taxation Office (ATO) or speak to a registered tax agent for your situation.

A quick note on timing

Australia's tax year runs from 1 July to 30 June. You can usually lodge your return from 1 July once the year ends, and the deadline if you lodge yourself is 31 October. For the 2025–26 year, that date has passed (it was 31 October 2026). If you haven't lodged yet, don't panic, but do it as soon as possible, because late lodgement can lead to penalties, and a registered tax agent may be able to give you a later due date if you were signed up with them in time. Check the ATO for the current rules.

For the 2026–27 year, which started on 1 July 2026, you can lodge from 1 July 2027.

Do you need to lodge a return?

If you earned income in Australia or had tax withheld during the year, you generally need to lodge a tax return. That includes part-time and casual work, even if you only worked a little.

Many students earn less than the tax-free threshold, so they pay little or no tax. But if your employer withheld tax from your pay, the only way to get that money back is to lodge. Our guide to the minimum wage in Australia explains what you should be paid in the first place.

Step 1: Get a Tax File Number (TFN)

Your TFN is your unique tax ID. If you work in Australia, you'll need one, and you give it to your employer. You can apply for a TFN through the ATO's website. It's free, and you don't need an agent.

Be wary of anyone who offers to sell you a TFN or charges a fee. Keep it private, and don't share it with people you don't trust.

Step 2: Understand your tax residency

This is the most important step, because it determines how much tax you pay.

Tax residency is not the same as your visa status. For tax purposes, the ATO looks at things like how long you've lived in Australia and your connections here.

• If your course lasts six months or more, you're generally treated as a resident for tax purposes, even on a temporary student visa.

• If your course is shorter than six months and you plan to leave afterward, you're probably a foreign (non-) resident for tax.

Why it matters:

In the financial year you first arrive, you usually get a part-year tax-free threshold based on how many months you were here, instead of the full $18,200. The ATO has a residency tool that helps you work out your status.

Step 3: Tell your employer correctly

When you start a job, you complete a tax file number declaration form. One question asks whether you want to claim the tax-free threshold. Only say yes if you're a resident for tax purposes, and only claim it from one employer at a time. Claiming it incorrectly can mean you underpay tax during the year and owe money later.

Step 4: The rates you'll pay

Resident tax rates for 2025–26 were:

From 1 July 2026, the 16% rate drops to 15% for the 2026–27 year, according to guides based on the government's changes. Check the ATO for the current rates, because they're adjusted from time to time.

A useful rule of thumb: if you're a resident and you earned $25,000 in a year, the tax on that is quite low, because the first $18,200 is tax-free.

Step 5: Set up myGov and link the ATO

To lodge online, create a myGov account and link it to the ATO. You'll need to verify your identity, and it can take a little time, so don't leave it to the last minute. If you've changed your name, address or bank details, update them too.

Step 6: Wait for your income statement

After the end of the financial year, your employer reports your income and tax withheld to the ATO. This appears in your ATO account as an income statement, which replaced the old group certificates. Check that it shows "tax ready" or finalized, and that the figures match your payslips. If your employer hasn't finalized it, wait a little, or ask them.

Step 7: Check your other income and deductions

Gather any other details that affect your return:

• Other income, including from a second job, interest or income earned in your home country (residents generally declare worldwide income).

• Work-related deductions, such as a uniform that has to be laundered or tools you bought for the job, with receipts.

• Super. Make sure your employer paid it (see our guide to claiming your super when you leave Australia).

Only claim what you're entitled to, and keep records for the time the ATO requires, generally five years.

Step 8: The Medicare levy and OSHC

Most Australian residents pay a Medicare levy of 2% of taxable income. But international students typically don't have access to Medicare. They have Overseas Student Health Cover (OSHC) instead. If you're not entitled to Medicare, you may be able to claim an exemption from the Medicare levy, which can mean a bigger refund. Some guides estimate it's worth a few hundred dollars for many students, but your figure depends on your income.

The process involves applying for a Medicare entitlement statement (a certificate of exemption), which you then use when lodging your return. The ATO explains the steps, and if you're unsure, a registered tax agent can help. Don't claim the exemption if you're actually entitled to Medicare, such as under a reciprocal health care agreement, because that can cause problems.

Step 9: Lodge your return

You can lodge in a few ways:

• myTax, the ATO's free online system through myGov. It's the simplest option for most students, and it pre-fills a lot of the information.

• A registered tax agent. Useful if your situation is complicated, though they charge a fee. Check that they're registered with the Tax Practitioners Board.

• Paper return, which is slower.

In myTax, you'll check your pre-filled income, confirm your residency, add deductions, answer the Medicare questions and enter your bank details for any refund. Make sure your bank account details are right, and that the account can receive Australian payments.

Step 10: After you lodge

• Check your notice of assessment. It shows your result and any refund or amount owing.

• Pay on time if you owe. The ATO can arrange payment plans if needed.

• Keep your records. Save your return, income statements and receipts.

• Watch for scams. The ATO won't ask for payment via gift cards or threaten you on the phone. If something seems off, contact the ATO using details from its official website.

Common mistakes

• Assuming you don't need to lodge. If tax was withheld, lodging is how you get it back.

• Claiming the tax-free threshold from two employers. It's only for one at a time.

• Getting your residency wrong. The $18,200 threshold doesn't apply to non-residents.

• Missing the Medicare levy exemption. It's easy to overlook if you don't have Medicare.

• Not checking your income statement. Mistakes happen.

• Using someone who charges a huge cut. Check fees first.

• Lodging late. Penalties can apply.

• Throwing away receipts. You may need them later.

• Forgetting your super. See our guide to claiming it when you leave.

Quick answers

Do international students have to lodge a tax return?

If you earned income or had tax withheld, generally yes.

Am I a tax resident?

If your course lasts six months or more, usually yes, even on a student visa. Your actual tax residency depends on your circumstances, so check with the ATO.

What's the tax-free threshold?

$18,200 for residents for a full year, and a part-year amount in the year you arrive.

Do I pay the Medicare levy?

You may be exempt if you're not entitled to Medicare, but you need to claim it with a Medicare entitlement statement.

When's the deadline?

31 October if you lodge yourself, with later dates possible through a registered tax agent. For 2025–26, that date has passed.

Can I lodge if I earned less than $18,200?

Yes, and you should if tax was withheld.

Is it free?

Lodging through myTax is free. Agents charge fees.