Studying in Australia? A Complete Guide to Student & International Student Tax Returns

Pursuing your education in Australia is an exciting experience. However, the management of responsibilities outside academics can feel like a hassle at times. One of the essential areas students often tend to overlook is taxation. Whether you study in Australia for a short course or for a longer program, a clear picture of these obligations helps you to stay prepared. Here is a guide for you to understand the topic of student and international student tax returns:

Understanding the Australian Tax System for Students

Clear knowledge of how the tax system works is an essential part while you manage lodge tax return in Australia while studying. An overview of the student tax return requirements helps students to stay compliant and well-informed about different regulations. The system is designed to track income earned during the financial year and assess whether tax is payable or refundable. Here are the basics that make the process simpler and less stressful when lodgement time is approaching:

1. Overseas Students Studying in Australia

• Many international students may be treated as Australian residents for tax purposes depending on their circumstances, such as length of stay, intention, and living arrangements — not just course duration.
• This also means that, like Australian residents, you must declare all income earned in Australia and overseas on your tax return Perth, following the Australian Taxation Office (ATO) rules.
• Income is taxed at the same rates that apply to other Australian residents.
• You may be eligible for benefits within the tax system, including the tax-free threshold, depending on how long you stay during the financial year.
• Additional advantages are access to tax offsets and generally lower tax rates as compared to foreign residents.

2. Temporary residents

• Most overseas students have a temporary visa, which means they might be classified as temporary residents for tax purposes.
• If you are both a temporary resident and an Australian resident, most foreign income is not taxed in Australia.
• In this case, you usually declare only the income earned on the tax return for international students in Australia.
• Certain overseas employment income linked to services performed while living in Australia might need to be declared while you are a temporary resident.

Who Needs to Lodge a Tax Return

The first step towards this entire process is understanding whether you must lodge a tax return. Many students who study Australia earn income along with their education, which can result in tax obligations. Let us have a look at the cases when you are required to lodge a tax return:

• Students who earn through part-time, casual or full-time work usually need to lodge a tax return Australia.
• Students who want to claim work-related deductions also need to submit a tax return, even when the income is low.
• International students earning income from Australian sources usually have an obligation as well.
• Students with more than one employer during the current financial year also need to declare all income earned.

Tax-Free Threshold Explained

The tax-free threshold is also an important concept to consider while managing tax returns for students in Australia. This threshold directly affects what portion of your income you pay as tax to the ATO. The tax-free threshold is currently fixed at $18,200. This basically means that you do not have to pay any income tax when you earn up to $18,200 or less in a financial year, .ie, 1 July to 30 June. Eligibility for this is also dependent upon your residency status and how long you have worked during the financial year.

When You May Not Need to Lodge a Tax Return

Not every student has to submit a return each year in Australia. There are cases of exceptions, which might save both your time and effort. While managing a tax return for students Australia, there are some situations where you can avoid lodging altogether. Let us have a quick look at these situations:

• You did not earn any income in Australia during the financial year.
• Your total income has remained below the tax-free threshold and no tax was withheld by your employer.
• All income you receive is classified as exempt, such as certain scholarships or grants.
• You were not required to claim any deductions or offsets for the year.

In case you are still confused, a personal tax return help can also clarify whether your circumstances meet the conditions set by the ATO.

Submitting a Non-Lodgment Advice

A non-lodgement advice is a crucial step for students who are not required to lodge a return for a financial year. This process allows the ATO to know that no tax return will be submitted and helps with any follow-up requests. For those who are managing an international student tax return Australia, this step makes sure that your records are accurate and updated. Here are some instance scenarios for ease of understanding:

1. Part-time Worker

When you have worked part-time and earned $15,000 during the year, with $500 tax withheld by your employer, you will still have to lodge a return. Even though your income falls below the tax-free threshold, lodging it allows you to claim back the amount withheld.

2. No Income

In case you are a full-time student with no income at all, you do not need to lodge a return. However, submitting a Non-Lodgment Advice is still necessary in this situation as well. 

This applies equally when handling an individual tax return in Australia, as it confirms your status and prevents unnecessary notifications from the tax authority.

Key Lodgement Dates and Deadlines

Students also need to know about tax deadlines to stay organised and well prepared beforehand. For anyone who is dealing with student tax returns in Australia, having sufficient awareness of the lodgement dates and payment deadlines helps them to stay free from stress. Here is a table that will give you clarity on the dates and what you must mandatorily do:

Key Date	Requirement	Details
31 October	Lodge your return	Deadline when you are lodging your tax return yourself.
By 31 October	Book a tax agent	Last date to book with a registered tax agent Perth.
21 November	Pay the tax that you owe	This is the payment deadline when you have a tax liability.
After deadlines	Penalties are applied by the ATO	Late lodgement or payment may attract penalties or interest charges.

Preparing to Lodge Your Tax Return

Before you lodge individual tax return, begin by properly organising first. Let us have a look at the steps you have to undergo for lodging the tax return:

Step 1: Choose how you will lodge ITR Perth

You can lodge it using any one of the following methods, as approved by the ATO:

• Online through myTax using a myGov account linked to the ATO.
• Through a registered tax agent, which is helpful in case you have multiple income sources or scholarships.
• By paper form through mail, but processing times are usually longer.

Step 2: Prepare your documents

Ensure that you have the following documents:

• PAYG income statements from all employers.
• Receipts and invoices for work-related expenses.
• Records of scholarships, bursaries or overseas income.
• A valid Tax File Number correctly linked to your visa.

Step 3: Review eligible deductions

You will be able to claim deductions for the following:

• Work-related expenses such as internet, phone, or electricity used when working from home.
• Self-education expenses if your studies are related to your job.
• Uniforms or tools that you require for your work.

All claims must be mandatorily supported by receipts and directly associated with earning your income.

Step 4: Plan to avoid delays

In case there is a late tax return, the ATO might charge you a penalty of $330, which keeps on increasing every 28 days, up to $1650.

In a situation where you have missed your payment deadline, interest applies to the unpaid amount as well. It is about 10.61% approximately per year. If your situation feels complicated, working with an income tax return consultant or directly contacting the ATO can help ensure a timely payment plan.

Step 5: Plan Previously

• Create a budget for any payment due by 21 November to prevent an overdue tax return.

• You must link your myGov account with the ATO.
• Have sufficient digital copies of income and expense records.
• Book a tax accountant for students before 31 October if needed.

Knowing these steps will help you to make the process smoother and reduce the likelihood of errors, especially when you are dealing with an individual income tax return. 

Also read: What is the Income Tax Threshold in Australia in 2026?

Conclusion

Handling tax responsibilities is also a necessary part of student life in Australia, especially while you are juggling between studies, work and future plans. Aspects like your residency status, income obligations and deadlines help you to stay compliant with the ATO.

Acting quickly can help you to file student and international student tax returns with expertise. If you feel unsure at any stage or want expert guidance for your situation, book a Free Consultation with us for professional assistance. We help you in managing your accounts and ensuring your tax matters are handled correctly and on time.