How to Do Your First Tax Return in Australia as an International Student

Your first Australian tax return might feel daunting, but the steps are straightforward. This is general information only, not personal financial or tax advice. The Afrovo team is not a licensed financial adviser or registered tax agent. Check the ATO website or speak to a licensed tax professional for your specific situation.

If you've worked in Australia during the financial year (1 July to 30 June), you likely need to lodge a tax return. Doing it yourself is free, and the ATO has made the process simpler than ever. Let's walk through it step by step.

When Do You Need to Lodge a Tax Return?

Not every student needs to lodge a return. But if you earned income in Australia, it's usually required.

You must lodge if your employer didn't take enough tax out of your pay, or if you're entitled to a tax offset or benefit. As an international student on a student visa (subclass 500), your employer should have withheld tax from your wages, but you may be owed a refund or owe extra. The safest approach is to lodge if you earned any Australian income in the last financial year.

The annual tax year runs from 1 July to 30 June. Self-lodged returns are generally due by 31 October each year. If you lodge late without a valid excuse, you may face penalties, so mark the date in your phone now.

Step 1: Gather Your Documents

Before you start, collect everything you'll need. You'll want your income statements (formerly known as payment summaries) from every employer you worked for during the financial year. Your employer must give you this by 31 August (or later if you've left).

You'll also need your Tax File Number (TFN). If you don't have one, request it free from the ATO. It takes about two weeks to arrive. Make sure you gave your TFN to your employer within 28 days of starting work; if you didn't, let the ATO know when you lodge.

Gather any other documents showing income or deductions: bank statements showing interest earned, receipts for work-related expenses (uniform costs, tools, textbooks for work-related study), or proof of any government assistance you received.

Step 2: Set Up myGov and Link Your ATO Account

The ATO's online system is called myTax, and you access it through your myGov account.

If you don't have a myGov account yet, go to myGov.au and create one using your email address. You'll need to set a password and verify your identity (usually by receiving a code by SMS). Afrovo has published a full guide to setting up myGov and linking the ATO if you need detailed help.

Once your myGov account is active, link it to the ATO. The ATO will send you an activation code by post within two weeks, but you can link immediately online using your TFN and other personal details.

Step 3: Log In to myTax and Start Your Return

Go to mytax.ato.gov.au and log in with your myGov credentials.

The ATO pre-fills a lot of information for you: your name, address, TFN and income from your employers. Review it carefully. If something is wrong (like your employer's name is misspelled or the amount is incorrect), make a note and correct it when prompted.

Walk through each section. The ATO guides you through income, deductions, offsets and any other details it needs. Answer each question honestly.

Step 4: Report Your Income

The ATO usually pre-fills your employment income from your income statements. Confirm the amounts are correct.

If you worked for multiple employers, all their income will appear. As a student on a student visa, remember the resident tax-free threshold is AUD $18,200. If your total income is below this, you won't owe tax, but you may still need to lodge to get a refund of tax your employer withheld.

If you earned interest from a bank account, that will appear too. Report it accurately even if the amount is small.

Step 5: Claim Work-Related Deductions (If You Have Any)

Deductions reduce your taxable income. You can only claim expenses that are directly related to producing your income and not covered by your employer or anyone else.

Common student deductions include: work uniform costs (if you had to buy or maintain them yourself), stationery and office supplies for work, professional fees or subscriptions required for your job, or text books and course materials required for work-related study.

You cannot claim rent, meals, transport to and from work, or general lifestyle costs. Keep receipts for anything you claim; the ATO may ask for proof.

Step 6: Check for Tax Offsets

Tax offsets are payments or credits that reduce your tax liability or increase your refund.

As an international student, you may be entitled to the Low Income Tax Offset (LITO) if your income is below a certain threshold. The ATO usually applies this automatically, but review the pre-filled details. If you studied to improve your work skills, you might claim a deduction for course fees; check if this applies to you.

Step 7: Review and Submit

Before you hit submit, read through the summary page carefully. Check your name, TFN, income amounts and any deductions. If anything is wrong, go back and correct it.

The ATO will ask you to declare that the information is true and correct. This is a legal declaration, so be honest.

Once you submit, the ATO sends you a notice of assessment (usually within two weeks, sometimes instantly if everything is straightforward). This confirms how much tax you owe or are owed.

What Happens If You're Owed a Refund?

If your employer withheld more tax than you owed, the ATO will refund the difference. When you lodge your return, provide your bank account details so the ATO can deposit the refund directly. It normally arrives within two weeks.

If you don't provide a bank account, the ATO will mail you a cheque, which takes longer.

What If You Owe Money?

If you owe tax, the ATO will explain how to pay. You can pay online via BPAY, credit card, direct debit or at Australia Post. Pay by the deadline on your notice of assessment to avoid interest and penalties.

Scams and Safety

During tax time, scammers impersonate the ATO and try to trick you into sharing your TFN or banking details. The real ATO will never ask for your password, bank details or TFN by email, SMS or phone. If you receive an unsolicited message claiming to be from the ATO, ignore it. Check Scamwatch if you're unsure.

Always go to the official ATO website or myTax directly; don't click links in emails.

Frequently Asked Questions

Q: Do I have to lodge a return if I didn't earn much money?

A: Not necessarily. If your total income is below the tax-free threshold (AUD $18,200) and your employer withheld the right amount of tax, you may not need to lodge. However, if tax was withheld, you should lodge to claim a refund. The safest approach is to lodge if you're unsure.

Q: What if my employer didn't give me an income statement?

A: Contact your employer and ask for it. By law, they must provide it by 31 August (or later if you left). If they refuse, contact the Fair Work Ombudsman or report it to the ATO.

Q: Can I lodge a return for a previous year?

A: Yes. You can lodge returns for previous years. Use myTax to lodge for past years if you haven't already, or contact the ATO for help. There's no time limit, but earlier years are harder to gather documents for, so do it as soon as you can.

Q: What if I made a mistake after I lodged?

A: You can amend your return if you spot an error within two years. Log back into myTax, find the option to amend and correct it. The ATO will recalculate your tax and send you a new notice of assessment.

Q: I'm leaving Australia soon. Do I still need to lodge a return?

A: Yes, if you earned income in Australia during the financial year, you should lodge a return before you leave. Lodging ensures you claim any refund owed and don't leave a debt hanging over you. After you leave, keep your TFN safe in case the ATO needs to contact you.

Summary

Your first tax return doesn't have to be stressful. Gather your documents, set up myGov, log into myTax, review the pre-filled information, claim any genuine deductions and submit. The whole process usually takes an hour or two.

For detailed help at every step, visit the ATO website, which has videos, guides and a phone service. For budgeting and managing your money year-round as a student, check out our student finance hub. Look after your money wisely, and your first tax return will be just one smooth step in your Australian journey.