Who This Guide Is For
This guide is for international students on a student visa (subclass 500) studying at an Australian university, TAFE, or registered training organisation. If you have earned any income in Australia during FY2025–26 — whether from part-time work, internships, or scholarships — you need to understand your tax obligations before June 30.
The end of financial year (EOFY) is your last chance to get your records in order. With only weeks until June 30, now is the time to understand what you can claim and what you must report.
Key EOFY Dates for International Students
| Date | What Happens |
|---|---|
| June 30, 2026 | End of financial year — last day to incur deductible expenses |
| Early July 2026 | Employers issue PAYG payment summaries (via myGov / ATO online) |
| July–October 2026 | Lodge your 2025–26 tax return |
| October 31, 2026 | Self-lodgement deadline (or later if using a registered tax agent) |
Missed a previous year? You can still lodge overdue returns. The ATO may apply penalties for late lodgement, but it is never too late to become compliant.
Are You an Australian Resident for Tax Purposes?
This is the single most important question for international students. Tax residency is not the same as visa status — you may be a resident for tax purposes even on a student visa.
| Factor | Resident for Tax Purposes | Non-Resident for Tax Purposes |
|---|---|---|
| Length of stay | 6+ months with consistent residence | Short-term under 6 months |
| Course duration | Enrolled in a degree of 6+ months | Short course or exchange |
| Living arrangement | Rented apartment, ongoing lease | Temporary accommodation |
| Tax-free threshold | ✅ $18,200 tax-free threshold applies | ❌ Taxed from first dollar |
| Tax rates | Resident marginal rates | 30% flat on first $135,000 |
| CGT discount | ✅ 50% discount eligible | ❌ No CGT discount |
If you have been living and studying in Australia for more than 6 months with a consistent address, you are likely a resident for tax purposes. This means you get the $18,200 tax-free threshold and lower marginal rates — but you must declare worldwide income.
Tax File Number (TFN)
You need a TFN to work legally in Australia and to lodge a tax return. If you do not have one:
- Apply online at ato.gov.au (free — never pay for a TFN application)
- You will need your passport and visa details
- Processing takes up to 28 days
Without a TFN, your employer will withhold tax at the top marginal rate (47%) from your pay — costing you thousands.
Medicare Levy Exemption for International Students
According to the ATO, international students who are not eligible for Medicare can apply for a Medicare Levy Exemption. You must obtain a Medicare Entitlement Statement (MES) from Services Australia before lodging your return.
How much this saves you: The Medicare Levy is 2% of taxable income. If you earned $30,000 working part-time, the exemption saves you $600 — money that stays in your pocket.
What International Students Can Claim
1. Work-Related Expenses
If you work part-time, you can claim expenses directly related to earning your income:
- Uniforms: If your job requires a specific uniform with a logo, or protective clothing (e.g., hospitality non-slip shoes)
- Laundry: Up to $1 per wash for one load, or $0.50 per wash if mixed with other clothes
- Travel between jobs: If you have two part-time jobs, travel between them is deductible (home-to-work travel is not)
Example calculation: Working 2 shifts per week in hospitality × 50 weeks = 100 uniform washes. At $1 per dedicated wash: $100 deduction.
2. Self-Education Expenses
If your course directly relates to your current employment, you may claim:
- Course fees (not HECS-HELP or FEE-HELP amounts)
- Textbooks and stationery
- Student services and amenities fees
- Depreciation on your laptop (work-related percentage only)
Important: Your degree must be connected to your current job — a nursing student working as a barista cannot claim nursing textbooks.
3. Tools and Equipment
If you buy tools or equipment for work (e.g., kitchen knives for a chef, laptop for freelance work):
- Items under $300: Full deduction in the year of purchase
- Items over $300: Depreciate over the item's effective life
4. Union and Professional Fees
Membership fees for unions (e.g., United Workers Union, SDA) or professional bodies related to your job are fully deductible.
5. Charitable Donations
Donations of $2 or more to registered Australian Deductible Gift Recipient (DGR) charities are deductible. Keep your receipts.
According to the ATO, you must keep written evidence for all deductions claimed. This includes receipts, invoices, and bank statements showing the amount, date, and nature of each expense (ATO guidelines).
Common Mistakes International Students Make
| Mistake | Why It's Wrong | What to Do Instead |
|---|---|---|
| Assuming you do not need to lodge | Even earning below the tax-free threshold, you should lodge to claim back withheld tax and get a refund | Lodge even if you earned under $18,200 |
| Not applying for Medicare exemption | You pay an extra 2% you do not owe | Get your MES from Services Australia |
| Claiming home-to-work travel | The ATO strictly disallows this | Only claim travel between two jobs |
| Using your home country tax rules | Australian tax years run July 1 – June 30, not calendar year | Always use the Australian financial year |
| Not keeping receipts | The ATO can disallow claims without evidence | Use the ATO myDeductions app |
Records to Keep
- PAYG payment summaries from all employers
- Payslips (keep all of them)
- Receipts for work-related purchases
- Bank statements showing work income
- Medicare Entitlement Statement (MES) if claiming exemption
- Rental ledger or lease agreement (proof of residency)
- Scholarship or grant letters
Quick Checklist
- Applied for a TFN (if you haven't already)
- Requested Medicare Entitlement Statement from Services Australia
- Downloaded all payslips and payment summaries
- Photographed all work-related receipts
- Downloaded the ATO myDeductions app
- Checked your tax residency status
- Gathered records of any scholarship income
- Reviewed bank statements for work-related expenses
a registered tax agent (see the directory) Still unsure whether you need an agent? See our full decision guide.
*Disclaimer: This is general information only. Tax rules depend on your individual circumstances, including your visa conditions and residency status. Consult a registered tax agent for advice specific to your situation.*