The short answer for international students
For most international students on a 500 visa with a single part-time hospitality / retail job + no overseas income — myTax is fine. The complexity threshold is lower than for residents, but the specific cases where Agent help pays off are common: Medicare Levy exemption claim, multiple jobs / scholarship + work mix, change-of-residency mid-FY, or returning home before EOFY.
This guide covers the 5 student-specific factors.
What makes international student returns different
1. Tax residency status — the most important question
International students are usually Australian residents for tax purposes if they intend to stay for 6 months or more and live continuously in one place. This means:
- Worldwide income reported (not just Australian)
- Access to tax-free threshold ($18,200)
- Standard resident tax rates apply
- Medicare Levy may apply
If you're here less than 6 months, or you keep your home base overseas, you may be a non-resident for tax purposes. Different rates (no tax-free threshold; flat 30% from dollar 1 up to $135k).
A Registered Tax Agent runs the residency tests (resides test, domicile test, 183-day test, Commonwealth super test) properly. Getting this wrong is the most expensive mistake.
2. Medicare Levy exemption
International students on 500 visa with OSHC (Overseas Student Health Cover) — not Medicare — can claim Medicare Levy exemption. This saves 2% of taxable income (up to ~$1,700 on $85k income).
To claim:
- Apply for Medicare Levy Exemption Certificate from Services Australia (now via Medicare itself)
- Apply before lodging — wait time can be 4-8 weeks
- Cite certificate reference in your return
A Registered Tax Agent guides you through the certificate application. Many students miss this and pay 2% unnecessarily.
3. Multiple jobs / casual work + tax-free threshold
International students often have:
- Casual hospitality / retail / Uber Eats / DoorDash
- Tutoring or campus jobs
- 48-hours-per-fortnight cap (though increased for some courses)
- Sometimes scholarship + work mix
If you tick "tax-free threshold" on more than one employer's TFN Declaration, you'll owe tax at year end. A Registered Tax Agent reconciles this and explains the correct setup for next year.
4. Scholarship income
Government / university scholarships have specific tax treatment:
- Living allowance portion may be assessable income
- Tuition-fee portion is usually not assessable
- Stipend during research (PhD / Masters by research) — varies by source
- Research contract income is fully assessable
Australia Awards, RTP, and other major scholarships have specific ATO (ATO guidelines) rulings.
5. Returning home — final return + super refund
If you leave Australia permanently:
- Lodge a final return (or two, if leave date crosses 30 June)
- Apply for Departing Australia Superannuation Payment (DASP) to claim super
- Receive Working Holiday-Maker or non-resident tax treatment on bonus / leave payouts at termination
- Cancel TFN if no future return
A Registered Tax Agent handles departure paperwork while you're focused on packing.
Decision matrix — international students
| Situation | DIY in myTax fine? | Agent recommended? |
|---|---|---|
| Single casual job, full FY, no scholarship | ✅ Yes | 🟡 One-off check |
| Multiple casual jobs | 🟡 Doable with care | ✅ Tax-free threshold trap |
| Claiming Medicare Levy exemption | 🟁 Doable if you have certificate | ✅ Agent ensures correctness |
| Scholarship + work mix | ❌ Tricky categorisation | ✅ Strongly recommended |
| First FY in Australia (part-year resident) | ❌ Residency rules | ✅ Strongly recommended |
| Returning home this FY | ❌ Final return + DASP | ✅ Strongly recommended |
| PhD / research stipend | ❌ Variable treatment | ✅ Strongly recommended |
International student-specific deductions an Agent will check
- Self-education NOT deductible (tuition for current student visa is not work-related)
- Work-related expenses (uniforms, tools, equipment) if employment exists
- WFH if working from home for part-time job
- Phone work-use % if employer-required
- Union fees if joined
- Donations (DGR-registered charities only)
(Most students have few deductions — the value is in the residency / Medicare / scholarship categorisation, not the deduction list.)
When myTax DIY is genuinely fine for international students
- Single part-time job, full FY, no scholarship
- You already have your Medicare Levy exemption certificate
- You're confident on residency status (have lived here > 6 months continuously)
- No mid-FY departure or arrival
- No overseas income
If 5 of 5 apply, DIY in myTax takes 30 min.
Need Help With Your Tax Return?
Still unsure whether you need a tax agent? a registered tax agent (see the directory) Check our full decision guide to see if a tax agent is right for your situation.
*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*
6-point self-check before deciding
Need a professional? Browse every TPB-registered tax agent near you in the AusTax directory, or post a request and matching practices will contact you — free.
See decision guide for the framework.
AI analysis on this page is general information, not personal tax advice. International students particularly benefit from review by a TPB Registered Tax Agent who understands residency rules and scholarship treatment.