Every year, thousands of international students in Australia either miss out on refunds they’re owed or get their tax residency wrong. Having started as international students ourselves, we’ve helped thousands of students through this — here’s what you need to know for tax time.
Do I need to lodge a tax return?
Almost certainly yes, if any of these apply to you:
- You worked and had tax withheld from your wages (check your payslip)
- Your total taxable income for the year was above the tax-free threshold ($18,200)
- You ran a side business or worked on an ABN (deliveries, ride-share, freelancing)
- You want to claim back excess tax withheld — which is where most student refunds come from
If you earned under the threshold and had no tax withheld, you may only need to lodge a “non-lodgment advice” — we can sort that out in minutes.
The residency surprise: most students are residents for tax
Here’s the part that confuses everyone. Being an international student on a visa doesn’t make you a “non-resident” for tax. If you’re in Australia on a course lasting more than six months and you’ve settled into a routine here, the ATO generally treats you as an Australian resident for tax purposes.
That’s usually good news: residents get the $18,200 tax-free threshold and lower marginal rates. Non-residents pay tax from the first dollar. Getting this wrong in either direction leads to incorrect refunds — or debts that surface later, sometimes during visa processing.
What can students claim?
Deductions must relate to earning your income (not your studies, in most cases). Common claims for working students include:
- Work uniforms with logos, and protective gear (including sun protection for outdoor work)
- Tools and equipment for your job
- Union and professional association fees
- The work-related portion of your phone and internet
- Travel between two jobs on the same day (not home to work)
- Tax agent fees — what you pay us this year is deductible next year
Keep receipts. The ATO’s data-matching is extensive, and guessed claims get picked up.
Medicare levy: don’t pay it if you’re exempt
Most international students aren’t entitled to Medicare, which means you can usually claim a Medicare levy exemption — saving 2% of your taxable income. You’ll need a Medicare Entitlement Statement first, which must be applied for. Many students miss this completely and overpay by hundreds of dollars. We handle the application as part of your return.
Leaving Australia? Two more things
If you’re finishing your studies and heading home, lodge an early return if needed — and don’t leave your superannuation behind. You can claim it as a Departing Australia Superannuation Payment (DASP) after you leave and your visa ends.
Get it done in your language
SAMAF was founded by former international students, and our team speaks 15 languages. Bring your questions in whichever language is easiest — book a free consultation or see our international students page.
This article is general information only and doesn’t take your circumstances into account. Tax outcomes depend on your specific situation — talk to us before acting.