AUSTRALIAN TAXATION MATTERS FOR INTERNATIONAL STUDENTS

If you work or earn interest on your savings or investments, you will have to pay income tax in Australia.

Income tax is usually deducted from your salary/wage by your employer and paid to the Australian Taxation Office (ATO) before you receive it. Your bank or financial institution usually asks for your Tax File Number (TFN) when you open your bank account.

The financial year in Australia is from 1st of July to 30th June of the following year. If you pay tax on income or bank interests, you must lodge an income tax return with the Taxation Office at the end of the financial year (30th June). Your employer will issue you with a group certificate usually after July, which you need to lodge with the tax return. After ATO assesses your return, it will issue a refund to you if too much tax has been deducted. If unsufficient tax was paid, then the amount owing must be paid to ATO.

International students are classified as residents, for the purposes of taxation, if they are studying in Australia for six months or more (please note this when completing your application form for an TFN).

The current rate of income tax is as follows:

Taxable Income	Tax Rate %
$0-$6000 $6001-$21,600 $21,601-$63,000 $63,001-$95,000 $95,001+	0 15 30 42 47

The income tax threshold includes all income derived while residing in Australia (for example, interest, salary and wages).

Do I need a Tax File Number(TFN)

You need to apply for a TFN for the following purposes:

For work - you will be asked to quote your TFN on the Employment Declaration form by your employer. This will determine how much tax will be deducted from your salary;
For interest earned from any financial institutions, eg. banks
If you accrue any income in the forms of interest, dividends or unit trust distributions in Australia, your financial institutions will advise you to give your tax file number to them. If you choose not to give your TFN, the financial institutions may required to withhold tax at the highest rate at 48.25% from that earned income and remit this tax to the Tax Office. If this happens, you will have to wait until you have submitted an income tax return before you receive any refund for excess tax paid/witheld.

How do I apply for a Tax File Number (TFN)

1. Students with Work Rights visa

If you already possess or are approved for a WORK RIGHTS visa (i.e. you have condition 8104/8105 on your visa), you may apply for a TFN using the INTERNET.

Go to: www.ato.gov.au/individuals and select ONLINE INDIVIDUAL TAX FILE NUMBER REGISTRATION under the UPDATES section on the right hand side of the page.

To register online you will need to have:

your PASSPORT and your VISA NUMBER
you are not required to submit any documentfor proof of identity (like your passport). Proof of your identity will be established by checking your details such as name, sex, date of birth and travel document details (passport number & country of issue) with DIMIA

2. Students without Work Rights may lodge a TFN application in person

Even though you are not allowed to work you may still need a TFN to supply your bank or financial institution. To apply in person using a PAPER application form (available from ISS or download from www.ato.gov.au)

You will need your:

Passport and visa and current Student ID card (These documents will need to be sighted by ATO)

You must lodge the completed application form in person with the proof of identity documents at the nearest Australian Taxation Office:

Sydney Tower (AMP Tower)
Podium Level, 100 Market Street, Sydney

The process takes up to 28 days. ATO will mail your TFN to the postal address you include in your application.

Do I need to lodge an income tax return?

As an international student, you have to lodge an income tax return, if any of the following applied to you:

You had tax deducted from income you received or earned in your casual employment;
You had an earned income exceeding the tax-free threshold amount of AUD$6000 ;
You had amounts deducted from interest, share dividends or unit trust earnings because you did not quote your Tax File Number to the banking or investment body.

How do I lodge an income tax return?

Keep records relating to income and deductions as you receive them during the year. Without these records, you will find it difficult to complete your tax return;
Obtain group certificate(s) from your employer(s);
Ask for a copy of the TaxPack from any newsagency or the ATO. The TaxPack is usually available from July to October. The instructions in the TaxPack is easy to follow. You can either complete the form or you can go to a tax agent, the fees of which is tax deductable. Once you have lodged your tax return by mail or through the tax agent, you just have to wait for a reply from the ATO.
It is also possible to lodge an income tax return online through the e-tax facility on ATO website: www.ato.gov.au

For more details and information on taxation, please check the Australian Taxation Office.

International students are classified as residents, for the purposes of taxation, if they are studying in Australia for six months or more (please note this when completing your application form for an TFN).

The current rate of income tax is as follows:

Do I need a Tax File Number(TFN)

How do I apply for a Tax File Number (TFN)

Do I need to lodge an income tax return?

How do I lodge an income tax return?