Tax Returns Guide for International/Overseas Student

If you are an international student in Australia and working part-time you could be eligible to claim a tax refund. Because there is high chance that you’re earning under the tax-free threshold which is $18,200.

Overseas students who has enrolled in a course that is more than six months long at an Australian institutions are considered an Australian resident for tax purposes. So, they will be taxed at the Australian resident tax rates, and may claim a credit against your Australian tax for the tax you pay on your foreign income.

It’s essential you lodge a return if you legally need to. If you’re unsure, contact the Australian Taxation Office (ATO) or a registered tax agent.

What are the tax deductions for overseas students?

One of the major claims that an overseas student can do on his tax return is to apply for a Medicare levy exemption. To be able to do that the tax payer must obtain a Medicare levy exemption certificate and then he/she can claim an exemption. For example if the tax payers taxable income is $40,000 then he/she can expect to get an extra tax refund of $1,000 on top of the normal refund. Most people on student visa, 457, other temporary visas can apply for the exemption. Please contact us to check your eligibility and to check other ATO conditions.

Some other deductions that can be claimed based on your occupation are:

  1. Work related travel
  2. Uniform and laundry
  3. Tools
  4. Phone and internet usage for work
  5. Subscriptions and memberships, Union fees
  6. Work related courses
  7. Donations. Tax agents fees.
  8. Income protection Insurance

All the above are subject to ATO conditions.

International Student Tax Return FAQ

Is it compulsory to lodge tax return for international student?

It’s essential you lodge a return if you legally need to. If you’re unsure, contact the Australian Taxation Office (ATO) or a registered tax agent.

When do we need to lodge tax return?

The deadline for tax return is October 31 if you’re lodging your tax return yourself is October 31. For instance, your tax return for the financial year from 1 July 2018 to 30 June 2019 must be lodged by 31 October 2019. However, if you lodge your tax return through a registered tax agent, you may have up until 15 May next year to lodge your return.

How do I lodge tax return?

You can lodge you tax return online from ATO website or seek assistance from professional tax agent.

How long does it take to get refund from ATO?

Normally it takes 2-3 weeks to process the tax return and get refund if there are no issues, but sometimes it can take up to a month depending on ATO processing times. Yo will get the refund back to your nominated bank account via direct deposit.

Need help understanding your student tax obligations?

Are you an ovearseas student? We can help you understand your tax obligations and make sure you get your maximum tax refund.

Read Also: Tax Returns Guide for First Time Lodger – Tax Returns 2019