Work Rights and Taxation for International Students in Australia

Are you an international student planning on coming to Australia?

Australia is a very popular destination for international students with over 80,000 international students coming here to spend some time studying abroad. 

You may ask, why Australia? Well there are so many reasons why Australia is the ideal place for international students to spend a semester studying. To name a few, the state of the art universities, friendly locals and the many fun activities and adventures that are waiting for you in Australia. 

As an international student planning on studying in Australia, you may also wonder if you can work and earn income while you study.

Thats why, Taxback have put together this guide which presents a series of the most frequently asked questions about international students working in Australia. 

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Are international students allowed to earn income while studying in Australia?

International students who are studying in Australia are entitled to work up to 20 hours each week during the semester if they have a valid student visa. 

During the school holidays, there is no limit to the number of hours for international students working in Australia. 

Useful resources in Australia

As an international student working in Australia, you may find it difficult to secure a part-time job. 

However, there are many useful resources that you can use to help you find a job. If you’re a student looking for a job in Australia, check out the agencies listed below. 

• Study in Australia - This website offers handy online courses for overseas students in Australia

• Student Job Board - Specialising in job offers for students, this website is part of Backpacker Job Board, who provide job offers for non-residents in Australia

• Study Destination who offer advice to international students and backpackers on visas and education 

• Australian Internships who offer international students Australian internships 

• This is Australia  – best migration agent that will help you secure your Australian Visa and find you a suitable student job

Want to Learn More About Australian Tax?

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Do international students working in Australia have to pay tax on their earnings?

Yes, if you work part time while studying in Australia you must pay tax on these earnings. 

However, there is some good news, at the end of the tax year you may be entitled to a big student tax refund. 

The average tax refund in Australia with Taxback is $2,600, so it is definitely worth checking what you are owed. 

Get your free no-obligation refund estimation with Taxback!

How will international students be taxed in Australia?

The main factor determining how you will be taxed is whether you are a resident or non-resident for tax purposes in Australia. 

If you have been in Australia for over six months, you will be deemed a resident for tax purposes. 

Residents in Australia are entitled to a tax-free threshold of up to $18,200. They must pay tax at a rate of 19% on any income between $18,200 and $45,000.

If you spend less than six months in Australia, you will be deemed a non-resident for tax purposes. 

Non-residents pay tax at a rate of 15% of the first $45,000 of their income.

What is a TFN?           

A TFN is your personal reference number in the tax and superannuation systems. 

Your TFN ensures you are fully compliant with the Australian tax codes and laws. 

When starting a new job in Australia, you should give your employer your TFN within 30 days when you start your job, by doing this you avoid paying emergency tax. 

A TFN allows you to do many important things including:

• Apply for any government benefits

• Claim your student tax refund

• Open a bank account in Australia

• File a return

• Pay the right tax rate

• Change jobs

Taxback can help you to apply for your TFN, apply online today!

Do international students working in Australia have to file a tax return?

Yes!

Any international student who earns income while studying must file an Australian tax return. 

The purpose of filing your Australian tax return is to ensure you are fully compliant with the Australian Tax Office. 

And what's more? By filing your tax return, you will be able to claim your Australian refund!

When is the deadline to file my tax return?

The Australian tax year begins on 1 July and ends on 30 June every year. 

Once the tax year ends, you can file your tax return. 

The deadline for filing your Australian tax return is 31 October however, if you file with a qualified tax agent like Taxback, you may be given extra time to file. 

Will I face penalties if I don’t file my tax return?

If you don’t file your student tax return, you may receive fines or penalties from the ATO.

Even worse than this, you will miss out on claiming your Australian tax refund. Why leave your hard-earned money?

How much tax will I get back?

The amount you get back will depend on a number of important factors, for example:

• The amount of tax you paid

• The length of time that you worked for 

• The income that you have earned

When you apply for your tax refund with Taxback, we will ensure you receive your maximum legal tax back!

Can I claim tax back on my college-related expenses?

Yes, you can claim tax back on the following:

• College course fees

• Stationery and textbooks

• Car expenses

• Student union fees

• Repairs to any educational equipment

Make sure that you keep your receipts for any of these expenses as you will need to provide them when claiming your tax back. 

Do I have to make superannuation contributions as an international student in Australia?

Superannuation is a system in Australia which involves collecting money that will be used to cover your income in retirement. 

If you are over the age of 18 and earn over $450 each month, your employer must pay into a superannuation fund on your behalf. 

Your employer must pay 10% of your earnings into the super fund. 

The good news is that when you leave Australia, you can claim a refund of all of the superannuation you have paid. 

The average Superannuation refund with Taxback is AU$1,908. 

Get your Superannuation refund with Taxback today!

Can working holidaymakers claim a tax refund?

Many backpackers are entitled to claim a tax rebate every year.

In fact, for over 25 years we have been supporting working holidaymakers to claim their Australian tax back.

When you apply with Taxback, our experienced team will conduct a full review of your situation and ensure you claim back every penny you’re due!

Use our tax refund calculator to find out how much tax back you're due.

Want to Learn More About Australian Tax?

DOWNLOAD YOUR FREE TAX GUIDE HERE

I am planning on working for myself, how do I ensure that I am fully tax compliant?

Many international students in Australia choose to work for themselves while studying. 

In order to work as a self-employed business or a sole trader, you must apply for an Australian Business Number (ABN).

If you work for yourself in Australia, at the end of the tax year you must file a tax return. It is important that you keep all of your invoices and receipts safe as you will need them when you file your tax return. 

File your Australian tax return with Taxback!

Who can help me with my Australian tax return?

You can file your Australian tax return directly with the Australian Taxation Office. However, many people find the process of filing a tax return very stressful and overwhelming. 

Thats why Taxback is here to help you to file your tax return and claim your tax refund. 

We have been getting Australian tax back since 1996, so we know what we are doing!

We will make sure you claim every relief you are entitled to and get your maximum student tax refund!

To get started, all you have to do is complete the short form here.

Claim your Australian refund the easy way! Apply online with Taxback!