International Students – Tax Rules and Regulations

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International Students – Tax Rules and Regulations

As an international student studying in Australia, you may be subject to certain tax rules and regulations. Here are some key points to keep in mind:

  1. Tax residency: Your tax residency status determines how much tax you need to pay and what you need to include on your tax return. Generally, if you are in Australia for more than six months and you have established a home in Australia, you are considered a resident for tax purposes. If you are a non-resident, you will only be taxed on income earned in Australia.
  2. Tax file number (TFN): You will need to apply for a TFN in order to work in Australia. This is a unique number that identifies you for tax purposes.
  3. Income tax: If you work in Australia, you will be required to pay income tax on your earnings. The amount of tax you pay will depend on how much you earn, your tax residency status, and any deductions you are eligible for.
  4. Tax return: You will need to lodge a tax return with the Australian Taxation Office (ATO) if you earn income in Australia. This is usually done at the end of the financial year (June 30).
  5. Superannuation: Your employer may be required to make contributions to a superannuation fund on your behalf. These contributions are held until you retire and are taxed at a concessional rate.
  6. Deductions: You may be eligible to claim certain deductions on your tax return, such as work-related expenses or study-related expenses.

It is important to note that tax rules and regulations can be complex and may vary depending on your individual circumstances. It is recommended that you seek professional advice from a tax accountant or registered tax agent to ensure that you comply with all relevant tax laws and regulations.

Susan Sangroula is a member of Chartered Accountants Australia and New Zealand and a Registered Tax Agent

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