International students working while studying in Australia may be required to pay income tax and lodge an annual tax return, according to the Australian Taxation Office, or ATO.
International students enrolled in a course lasting six months or more may be considered Australian residents for tax purposes. However, simply enrolling in a six-month course does not automatically make every student a tax resident.
Tax residency is determined by individual circumstances, including a person’s living arrangements, length of stay in Australia and the nature of their residence.
Students who are considered Australian tax residents must generally declare their Australian income, including wages from employment, in their tax return. In some cases, they may also need to declare income earned overseas.
Even international students who are not Australian tax residents may still need to declare Australian income earned through employment or other sources.
Having a student visa does not automatically provide an exemption from income tax. International students who start working should obtain a Tax File Number, or TFN, and provide it to their employer.
Employers generally withhold the required amount of tax from employees’ wages and send it to the ATO.
For people who are Australian residents for tax purposes for the full financial year, the tax-free threshold may apply to the first 18,200 dollars of taxable income.
Tax returns can generally be lodged from July 1 each year, with October 31 usually being the deadline for most people who lodge their own return.
Students may receive a tax refund if their employer has withheld more tax than required. However, if not enough tax has been withheld, they may have to pay additional tax.
International students working in Australia are therefore advised to keep their payslips, income statements and records of work-related expenses, and check their tax return obligations at the end of each financial year.
