Short answer
If you're an international student on a 500 visa who earned any Australian income in FY2025-26 (1 July 2025 - 30 June 2026), you must lodge a tax return — even if you only worked casual hospitality 1-2 days a week.
Lodgement is free via myTax through your MyGov account, and most international student returns are simple enough to DIY in 30-60 minutes. The challenges that catch first-timers are:
Step-by-step: first tax return on myTax
1. Set up MyGov + link ATO (one-time)
- Create MyGov account at https://my.gov.au
- Link "Australian Taxation Office" service — needs your TFN (Tax File Number) + 2-of-3 verification (notice of assessment, bank account, payment summary, etc. — first-timers often need ATO phone help here)
- Allow 24-48h for first MyGov ATO link
2. Wait for ATO pre-fill (mid-July to early August)
Don't lodge before late July. ATO needs 2-4 weeks after 30 June to receive:
- Your employer payment summaries (PAYG)
- Bank interest reports
- Centrelink data (if applicable)
- Health insurance statements
Lodging too early = manual entry of everything = much higher error risk.
3. Determine your tax residency
Most international students on 500 visa who plan to stay in Australia for the duration of their course (typically 1+ years) are Australian tax residents.
If yes (most cases):
- ✅ $18,200 tax-free threshold applies
- ✅ Standard resident rates
- ✅ Most deductions available
- ⚠️ You must declare worldwide income (overseas bank interest, dividends, etc.)
If no (short course, < 6 months in Australia, maintain home base overseas):
- Foreign resident — flat 30% tax from $1 to $135,000
- No tax-free threshold
- Limited deductions
The ATO's residency tool walks through this in 5 minutes.
4. Apply for Medicare Levy exemption (if applicable)
International students on 500 visa with OSHC (not Medicare) can claim a Medicare Levy exemption, saving 2% of taxable income.
- Apply for Medicare Levy Exemption Certificate from Services Australia
- Allow 4-8 weeks to receive
- Cite the certificate reference in your tax return
This is the single most-missed item by first-time international student lodgers.
5. Enter all jobs
If you worked for 2+ employers, each is a separate PAYG line. Don't tick the tax-free threshold on more than one — this causes year-end debt.
6. Claim deductions (if any)
International students typically have limited deductions but commonly:
- Uniforms (work-only, with receipts)
- Tools required for work (e.g. hospitality knives if you bought them)
- Union fees (if you joined)
- Donations to DGR-registered charities (over $2)
Self-education for your student visa course is NOT deductible — your visa course is what brought you to Australia, not an upskill for current employment.
7. Review + lodge
myTax shows you estimated refund/payable before you submit. Standard returns refund within 2-4 weeks via direct deposit.
When you should use a Tax Agent
DIY is fine for the standard scenario above. Consider an Agent if:
- You arrived/left Australia mid-financial-year (part-year residency)
- You have a scholarship — assessable portion varies by source
- You did Uber Eats / tutoring / freelance via ABN
- You have overseas income (bank interest, dividends, rental in home country)
- You're claiming Medicare Levy exemption for the first time
- You're approaching PR or had a visa change mid-year
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 international student decision guide for the full framework.
Need Help With Your Tax Return?
Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.
*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.*
This is general information only — international student tax has tighter edge cases than most. When in doubt, ask a TPB Registered Tax Agent.