The Australian tax system affects you differently, depending on whether you are in Australia as:
It is important to know what you need to do to work in Australia and how super works.
Working holidaymakers
You are a working holidaymaker if you are a tourist who intends to work and travel in Australia temporarily. You are not an Australian resident for tax purposes if one of the following applies:
- you are visiting Australia for more than six months and for most of that time you are travelling and working in various locations around Australia
- you are holidaying in Australia
- you are visiting for less than six months.
You can use the Are you a resident? tool to help you to work out your residency status.
As a working holidaymaker who is a foreign resident for tax purposes, you:
- pay tax on every dollar of income you earn in Australia - this tax is taken out by your employer before you receive your wages - see Individual income tax rates
- generally don't pay tax on income you earn overseas (for example, in your home country)
- don't pay the Medicare levy.
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Our Tax in Australia - what you need to know audio visual presentation provides basic information about tax and superannuation in 16 languages including English, Korean, Mandarin and Japanese. It includes segments about starting employment and completing a tax return.
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International students
If you are a student enrolled in a course of six months duration or more, we consider you an Australian resident for tax purposes and you pay tax at the residents' rate - see Individual income tax rates.
Your tax-free threshold will be pro-rated if you are not in Australia for the full year - see:
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Our Tax in Australia - what you need to know audio visual presentation provides basic information about tax and superannuation in 16 languages including English, Mandarin, Korean, Japanese, Thai and Arabic. It also includes segments about starting employment and completing a tax return.
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What do you need to work in Australia?
Both working holidaymakers and international students need the following to work in Australia:
- a work visa
- a tax file number (TFN).
Work visa
You apply to the Department of Immigration and Citizenship (DIAC) - www.immi.gov.au - for a work visa.
Tax file number
A TFN is a unique number that we issue you. It remains yours for life.
You can apply for a TFN once the Department of Immigration and Citizenship authorises you to work in Australia.
A TFN is not compulsory but there are several advantages to having one.
As a foreign resident, any interest you earn from Australian financial institutions will have 10% withholding tax taken out. You don't have to declare this interest on your tax return (because it has already been taxed).
If you don't provide your overseas address or your TFN, the rate is 45%.
There are several ways to apply for a TFN.
While you are working
To start work, you will need to complete a TFN declaration.
At the question 'Are you an Australian resident for tax purposes?' your answer depends on your situation:
- Answer no so your employer takes out tax at the foreign resident rates if one of the following applies
- you are a working holidaymaker travelling and working in various locations in Australia
- you are holidaying in Australia
- you are visiting for less than six months
- Answer yes so your employer takes out tax at the resident rates if you are an international student studying in Australia for six months or more.
When you start work, you have 28 days to provide your TFN to your employer. If you don't supply a TFN, your employer will take tax out of your wages at the highest rate instead of the normal rate that applies to your income bracket.
When you stop working, ask your employer for a payment summary.
Lodging a tax return
You will generally need to lodge a tax return at the end of the financial year (1 July-30 June the following year).
If you don't use a tax agent, you must send your tax return to us between 1 July and 31 October.
Super
While you are employed in Australia, your employer should contribute to a super fund on your behalf.
As you are a temporary visitor on an eligible temporary resident visa, you can get this money after leaving Australia.
More information
For more information, refer to:
Last Modified: Thursday, 14 June 2012