Will I get all my tax back in my first year in Australia?

The short answer is NO. For the less short answer keep reading…

There are rumours going around within the international student community that you will get all your tax back in your first year. We hear rumours and myths like these every day. It is like a bad game of Chinese whispers and to be honest, unfair for students that get excited by this info. This is one is the most common of them all.

Fact:

In Australia, if you are a resident for tax purposes and earn less than $18200 then you may be able to claim all your tax back.

How was this myth born?

Most students don’t earn over this amount during their first year and so, they may get all their tax back in their first tax return. For the small few of visa holders earning over this amount in their first year, they may only be able to claim some of their tax back.

For example, Juan is on an international student visa and has a part time job. He has only been in Australia for 5 months but will stay for 1 year. At tax time his income is only $5000 and has paid $500 tax. He is entitled to claimall his tax back as he has earned under $18200.

On the other hand, Jane is on an international student visa doing a masters in Australia for 2 years. She has a cleaning job that she works on the side. When she did her tax return she noticed she earned $25000 and paid $4000 during the whole year. As she earned over $18200, then she is only entitled to claim part of the $4000 tax paid even though it is her first time doing her tax in Australia.

Want an estimate of your tax refund before you get started?

Simply email your payment summary to [email protected], we will get back to you with your estimate for free.