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Australia International Student Tax Guide

Australian tax rules for international students. The guide covers: the student visa (Subclass 500) and the work rights — the 'international students' who hold the 'Subclass 500 visa' can 'work in Australia' for up to 48 hours per fortnight (the 'work limitation' on the 'student visa') when the 'course is in session'; the 'students' can 'work unlimited hours' during the 'scheduled course breaks' (the 'holiday periods'); the 'work hours' are 'monitored' by the 'Department of Home Affairs' — the 'breach of the work condition' may 'affect the visa'; the TFN for the international students — the 'international students' must 'apply for the TFN' (the 'Tax File Number') to 'work in Australia' (the 'employer requires the TFN for the PAYG withholding'); the 'TFN application' is made through the 'ATO' online (the 'TFN application for the individuals arriving in Australia'); the 'student' can also 'apply for the TFN in person' at the 'Service Australia' (the 'Centrelink office'); the tax return for the students — the 'international students' must lodge the 'annual tax return' if the 'taxable income' exceeds the 'tax-free threshold' (the 'tax-free threshold of $18,200' for the 'Australian residents') or the 'tax was withheld from the salary' (the 'PAYG withheld by the employer'); the 'students' can lodge the 'tax return' through the 'myTax' (the 'ATO online portal'); the 'students' may be eligible for the 'tax refund' if the 'employer withheld the excessive tax'; the 'tax return' must be lodged by the 31 October (the 'self-lodgement deadline') or the 15 May (the 'tax agent lodgement deadline'); the Medicare levy exemption for the international students — the 'international students' from the 'reciprocal health care agreement (the 'RHCA') countries' (the 'UK', 'New Zealand', 'Ireland', 'Finland', 'Sweden', 'Norway', 'Italy', 'Malta', 'the Netherlands', 'Belgium', 'Slovenia') are 'exempt from the Medicare levy' (the '2% Medicare levy'); the 'students from the non-RHCA countries' (the 'China', 'India', 'Brazil', 'Japan', 'South Korea', 'USA', 'Canada') are 'liable for the Medicare levy' and must 'pay the 2% Medicare levy' on the 'taxable income'; the 'students from the non-RHCA countries' should also 'take the private health insurance' (the 'Overseas Student Health Cover — the 'OSHC') — the 'OSHC' is the 'requirement for the student visa'; the superannuation for the international students — the 'international students' who 'work in Australia' must 'receive the super guarantee (the 'SG')' at 11.5% from the 'employer'; the 'students' can claim the 'DASP' (the 'departing Australia superannuation payment') on the 'departure from Australia' — the 'DASP tax rate' is 35% on the 'taxable component (the element taxed)' and 45% on the 'element untaxed'.

Visa & Work Rights

  • 48 hours per fortnight: The 'student visa' holders can work up to 48 hours per fortnight during the 'course periods'. The 'unlimited hours' during the 'scheduled course breaks'.
  • Visa compliance: The 'breach of the work condition' may 'affect the student visa'. The 'Department of Home Affairs' monitors the 'work hours'.
  • OSHC requirement: The 'Overseas Student Health Cover (OSHC)' is the 'mandatory health insurance' for the 'student visa' applicants.

For the TFN application and the tax return lodgement, see our Tax Filing Procedures Guide →.

Tax Return & Medicare

  • Tax return by 31 October: The 'international students' must lodge the 'annual tax return' by the '31 October' (the 'self-lodgement') or the '15 May' (the 'tax agent lodgement').
  • Medicare levy exemption: The 'students from the RHCA countries' (the 'UK', 'NZ', 'Ireland', 'Finland', 'Sweden', 'Norway', 'Italy', 'Malta', 'the Netherlands', 'Belgium', 'Slovenia') are 'exempt from the Medicare levy'.
  • Tax refund: The 'students' may be 'eligible for the tax refund' if the 'PAYG withheld' exceeds the 'actual tax liability'.

For the Medicare levy and the health insurance, see our Personal Tax Guide →.

Superannuation for Students

  • Super guarantee at 11.5%: The 'employer pays the super at 11.5%' on the 'student's wages'.
  • DASP on departure: The 'students' can claim the 'DASP' on the 'departure from Australia' — the 'DASP tax rate' is 35% on the 'taxable component'.

For the DASP and the departure procedures, see our Leaving Australia Guide →.