Do I have to pay tax in Australia as an international student?

Yes, if you work in Australia on a student visa, you are required to pay tax on your Australian income. Here is what you need to know:

Tax residency status:
Most international students studying in Australia for more than 6 months are considered Australian tax residents for tax purposes (despite not being permanent residents). This is beneficial because tax residents get the tax-free threshold of AUD 18,200 and lower tax rates.

Tax-free threshold: If you are a tax resident, the first AUD 18,200 you earn per year is tax-free. Above that:
- AUD 18,201–45,000: 16% (from 2025)
- AUD 45,001–135,000: 30%

Medicare Levy: Tax residents are usually subject to a 2% Medicare Levy on income. However, international students on a student visa are generally exempt from this levy.

Apply for a Tax File Number (TFN): Essential before starting work. Without one, your employer must withhold tax at the top rate (47%). Apply at ato.gov.au.

Lodge a tax return: The Australian tax year runs from 1 July to 30 June. Lodge your tax return by 31 October each year. If you have only had tax withheld from wages (PAYG), you may receive a refund. Use myTax (free, via myGov) or a tax agent.

Superannuation: Employers must pay super (11.5% of your wages from 2025) into a super fund for you. When you permanently leave Australia, you can claim this back through the Departing Australia Superannuation Payment (DASP). Note: a 65% tax is withheld on DASP claims.

Gig economy: If you drive for Uber or do other gig work, you may need to register for GST and lodge a Business Activity Statement (BAS).