How to Lodge Your Australian Tax Return: A Guide for International Students

Now that the financial year in Australia has ended, it’s time to start thinking about your tax return. Whether you’re a full-time, part-time, or casual worker, this guide will walk you through the essentials of lodging your tax return and what it means for international students.

Do I Need to Lodge a Tax Return?

If you’ve earned any income while studying in Australia, the answer is most likely yes! It doesn’t matter if you worked part-time, full-time, or casually. Here’s the key information you need to know:

• Tax-Free Threshold: The current tax-free threshold is $18,200. If you earned up to this amount or less in the financial year (from 1 July to 30 June), you won’t pay any income tax.

You need to lodge a tax return if:

• You had any tax withheld from your pay.
• You want to claim any deductions to reduce your taxable income.

When You May Not Need to Lodge a Tax Return

You might be exempt from lodging a tax return if:

• You didn’t earn any income.
• Your total income is below the tax-free threshold, and no tax was withheld by your employer.
• Your income is exempt from tax (such as certain scholarships).

What If You’re Studying in Australia for Less Than 6 Months?

If you’re in Australia for less than six months, you’ll likely be considered a non-resident for tax purposes. Here’s what that means for you:

• You will still need to lodge a tax return if you earned any Australian income.
• As a non-resident, you are not entitled to the tax-free threshold, which means you’ll be taxed at a higher rate.

You can find more about your residency status here.

When and How to Lodge Your Tax Return

The Australian financial year runs from 1 July to 30 June. You must lodge your tax return between 30 June and 31 October. Be sure to submit on time to avoid any penalties from the Australian Taxation Office (ATO).

Steps to Lodge Your Tax Return:

1. Gather your documents: Your PAYG payment summary (usually in your myGov account after 1 July) and receipts for any work-related expenses.
2. Use myTax: Lodge your tax return online using the ATO’s myTax system, accessible through your myGov account.
3. Complete your return: Follow the instructions to input your income, deductions, and other details.
4. Submit your return: Once completed, submit it online. You’ll receive a Notice of Assessment from the ATO, which will tell you if you owe tax or are due for a refund.

Tip: If you’re unsure about lodging the return yourself, consider using an accountant or tax agent. However, note that this will incur a fee.

Submitting a Non-Lodgment Advice

If you don’t need to lodge a tax return (for example, if you had no income), you should still inform the ATO by submitting a Non-Lodgment Advice. This prevents the ATO from following up on why you haven’t lodged a return.

Example Scenarios:

• Part-time worker: You worked part-time and earned $15,000 during the financial year. Your employer withheld $500 in tax. Since your income is below the tax-free threshold, you’ll need to lodge a return to claim back the $500.
• No income: You were a full-time student without any income. You don’t need to lodge a tax return but should submit a Non-Lodgment Advice.

Claiming Tax Deductions

As a student, you may be eligible for various tax deductions. These can reduce the amount of tax you need to pay. For example, if you bought items related to your job—such as uniforms or equipment—you may be able to claim them as deductions.

What to Do When Leaving Australia

If you’re leaving Australia permanently, you can still lodge your tax return online from your home country. Alternatively, if you’re eligible, you can lodge your tax return before you leave.

Support and Resources

If you’re unsure about any part of the tax process, there are resources available to help you:

• Visit the ATO’s website for detailed guidance.
• Check if you’re eligible for the ATO’s free Tax Help Program.
• Hire an accountant or tax agent to complete your return for you.

Filing your tax return doesn’t have to be complicated. With these tips and resources, you can navigate the process confidently and ensure you’re meeting all of your obligations while studying in Australia.