This international student tax return Australia guide starts with the short answer: if you earned income here in 2025-26, you will usually need to lodge a tax return, and the deadline to lodge it yourself is 31 October 2026. How much tax you end up paying depends mostly on one thing – whether you are an Australian resident for tax purposes.
Your visa does not decide that. The ATO says an overseas student enrolled in a course that lasts 6 months or more may be an Australian resident for tax purposes. Residents get the tax-free threshold and lower rates. Foreign residents pay 30% from the first dollar.
Below we cover residency, getting a TFN, the Medicare levy exemption, what you can and can’t claim, how to lodge, and what happens to your super when you leave. There is also a worked example showing the difference residency makes.
Key takeaways
- Students enrolled in a course of 6 months or more may be Australian residents for tax purposes, even on a temporary visa.
- Residents pay no tax on the first $18,200 (less if you arrived part-way through the year). Foreign residents pay 30% from the first dollar up to $135,000.
- As a temporary resident, most of your foreign income is not taxed in Australia.
- If you are not entitled to Medicare, a Medicare Entitlement Statement lets you claim an exemption from the 2% Medicare levy.
- Lodge by 31 October 2026, or be on a registered tax agent’s client list by then to get a later due date.
International student tax return Australia: what are the 2025-26 rules at a glance?
| Item | 2025-26 position |
|---|---|
| Income year | 1 July 2025 to 30 June 2026 |
| Self-lodgement due date | 31 October 2026 |
| Lodging through a registered tax agent | Later due dates may apply if you are on the agent’s client list by 31 October 2026 |
| Tax-free threshold (full-year resident) | $18,200 |
| Resident tax rate above the threshold | 16% on income from $18,201 to $45,000 |
| Foreign resident tax rate | 30% on income up to $135,000, no tax-free threshold |
| Medicare levy | 2% for residents, exemption possible with a Medicare Entitlement Statement |
| TFN application | Free, apply online through the ATO |
Are international students residents for tax purposes?
Often, yes. The ATO’s studying in Australia guidance says that if you are an overseas student enrolled in a course that lasts 6 months or more, you may be an Australian resident for tax purposes. If you are, you pay tax at the same rates as other residents and get the benefits that come with it, such as the tax-free threshold and tax offsets.
Course length is a strong pointer, not the whole test. Where you live, how long you have been here and whether your life is based in Australia all count. Our guide to foreign tax residency rules in Australia walks through the residency tests in more detail.
Temporary residents and foreign income
Most student visas are temporary visas, so you may be a temporary resident as well as an Australian resident for tax. In that case the ATO says most of your foreign income is not taxed in Australia and you don’t declare it. You declare income you earn in Australia, plus some income from employment or services performed overseas while you are a temporary resident.
Arrived part-way through the year?
If you became a resident during the income year, you don’t get the full $18,200. Under the ATO’s tax-free threshold for newcomers rules, your threshold is a flat $13,464 plus $4,736 apportioned for the months you were resident, counting the month you arrived through to June.
Watch out
Ticking “foreign resident” just because your visa is temporary can cost you thousands. Foreign residents get no tax-free threshold and pay 30% from the first dollar. Work out your residency properly before you lodge.
How do I get a TFN as an international student?
A tax file number (TFN) is your tax ID. You need one before you start work, and applying is free. The ATO’s TFN application for temporary visitors page says you can apply online if you hold a visa with work rights and are in Australia. You can check your visa conditions using VEVO.
- Check your visa allows you to work.
- Apply online through the ATO with your passport details and an Australian postal address.
- Wait for your TFN. The ATO says you should receive it within 28 days of it receiving your completed application, and asks you not to apply again during that time.
- Give it to your employer on a TFN declaration.
You have 28 days to give your employer the TFN declaration. If you don’t, they must withhold tax at the highest rate. If you are a resident, you can claim the tax-free threshold on the declaration, but generally only from one employer at a time. For step-by-step help, see our guide on how to apply for a TFN in Australia.
Do international students pay the Medicare levy?
Australian residents for tax normally pay a 2% Medicare levy. Many international students aren’t entitled to Medicare benefits, though, and the ATO’s not entitled to Medicare benefits page explains how to claim a full exemption.
You can claim the exemption for any period you have a Medicare Entitlement Statement (MES) from Services Australia showing you weren’t entitled to Medicare because you were a temporary resident for Medicare purposes, and you either had no dependants or all your dependants were also exempt. You claim it in your tax return under exemption category 3.
Foreign residents for tax don’t pay the Medicare levy at all. Our Medicare levy exemption guide covers the other exemption categories.
Tip
Overseas student health cover is not a Medicare Entitlement Statement. Apply for the MES through Services Australia before you lodge, so the exemption is ready to claim.
Which deductions can an international student claim?
You can claim expenses that relate to earning your income, that you paid yourself and weren’t reimbursed for, and that you have records for. Studying in Australia doesn’t on its own make your course costs deductible.
| Expense | Can you claim it? | Condition |
|---|---|---|
| Course fees and textbooks | Only sometimes | Must have a sufficient connection to your current job |
| Laptop and phone | Work-use share only | Apportion work and private use, keep a usage record |
| Travel between home and work | Generally no | Normal trips between home and work are private |
| Expenses your employer reimbursed | No | You can only claim what you paid yourself |
The ATO’s self-education expenses rules say study is deductible only if, at the time you pay, it has a sufficient connection to your current employment – it maintains or improves skills you need for your current job, or is likely to increase your income from it. A degree aimed at a future career usually won’t qualify.
On records, the ATO’s records you need to keep page says that if your total work-related expenses are $300 or less, you can claim without receipts as long as you can show you spent the money and how you worked out the claim. Above that, keep written evidence. Our tax deductions guide lists the common claims.
How and when do I lodge my return?
Your international student tax return Australia lodgement follows the same process as any other individual return. The Australian income year runs from 1 July to 30 June. The ATO’s tax in Australia overview says your return must be lodged, or you must engage a tax agent, by 31 October. For 2025-26 that means 31 October 2026.
- Log in to myGov and link the ATO.
- Open myTax and check the pre-filled income and tax withheld against your payslips and bank statements. The ATO says pre-filling is ready for most people by the end of July.
- Add anything missing, such as cash wages or bank interest.
- Answer the residency questions using your arrival date, course length and living arrangements.
- Claim the Medicare levy exemption if you have an MES.
- Add only deductions you can support, then lodge and keep a copy.
If you use a registered tax agent and are on their client list by 31 October 2026, a later due date can apply. Under the ATO’s agent lodgment program, 2025-26 returns not required earlier are due by 15 May 2027. Our tax due dates guide lists the key dates.
How much tax will I pay? A worked example
Residency is the biggest swing factor in any international student tax return Australia calculation. This example compares the two positions students most often choose between: lodging as a resident or as a foreign resident. Figures use the ATO’s 2025-26 resident tax rates and foreign resident tax rates.
The facts
- Priya is on a student visa, enrolled in a two-year master’s degree, and lived in Australia for all of 2025-26.
- She works part-time and her taxable income for the year is $30,000. She has no foreign income to declare.
- She has a Medicare Entitlement Statement covering the whole year and no dependants.
Option 1: lodging as a resident
- Tax on $30,000: ($30,000 – $18,200) x 16% = $11,800 x 16% = $1,888
- Less the low income tax offset: income is $37,500 or less, so the full $700 applies
- Medicare levy: $0, because she claims the exemption with her MES
- Total tax: $1,888 – $700 = $1,188
Option 2: lodging as a foreign resident
- Tax on $30,000: $30,000 x 30% = $9,000
- No tax-free threshold and no low income tax offset (it is only for residents)
- Medicare levy: $0 (foreign residents don’t pay it)
- Total tax: $9,000
Getting residency right saves Priya $7,812 ($9,000 – $1,188). Whether she gets a refund depends on how much her employer withheld during the year. If $2,500 was withheld, she would get back $1,312 as a resident ($2,500 – $1,188), but would owe $6,500 as a foreign resident ($9,000 – $2,500).
If Priya had arrived in March 2026
Her residency would start in March, so she would be resident for 4 months (March to June). Her tax-free threshold would be $13,464 + ($4,736 x 4 / 12) = $13,464 + $1,578.67 = $15,042.67, not $18,200. Our tax refund calculator can help you estimate your own position.
What happens to my tax and super when I leave Australia?
Leaving doesn’t end your obligations for the year. You still lodge a return for the income you earned while here, and your residency position for the rest of that year depends on when and how you left.
Super your employer paid is separate. Under the ATO’s departing Australia superannuation payment (DASP) rules, you can generally claim it once your temporary visa has ceased, you have left Australia and you don’t hold another active visa. Tax is withheld from the payment:
| DASP component | Non-working holiday maker rate | Working holiday maker rate |
|---|---|---|
| Tax-free component | Nil | Nil |
| Taxable component – taxed element | 35% | 65% |
| Taxable component – untaxed element | 45% | 65% |
Read more in our DASP guide.
Frequently asked questions
Do international students have to lodge a tax return in Australia?
Usually, yes. If you earned income in Australia during the income year, and especially if tax was withheld from your pay, you should lodge a return. For 2025-26 the self-lodgement deadline is 31 October 2026.
Am I a resident for tax if I study in Australia?
You may be. The ATO says overseas students enrolled in a course that lasts 6 months or more may be Australian residents for tax purposes. Your living arrangements and how long you have been here also count, so check your own facts.
Do international students pay the Medicare levy?
Residents normally pay a 2% Medicare levy. If you are not entitled to Medicare and have a Medicare Entitlement Statement from Services Australia, you can claim a full exemption for that period. Foreign residents do not pay the levy.
Do I need to declare income from my home country?
If you are a temporary resident, most of your foreign income is not taxed in Australia and you do not declare it. Some income from employment or services performed overseas while you are a temporary resident may still need to be declared.
Can I claim my university fees as a tax deduction?
Only if the course has a sufficient connection to your current job, for example it maintains or improves skills you need for that job. Study for a future career generally cannot be claimed.
Talk to specialist before it costs you
15-minute discovery call. No obligation, no jargon.
Talk to a registered tax agent
Want help with your international student tax return Australia lodgement? Not sure whether you are a resident for tax, or want someone to check your return before it goes in? Speak with a registered tax agent at Nanak Accountants & Associates on 1300 626 258, or book a consultation with our team. We prepare individual tax returns for students and workers across Australia.
This article is general information only and is not personal financial or tax advice. Information checked against ATO sources on 10 November 2026.
