Student Tax Refund 2021

While you enjoy your time studying and working in Australia, tax is probably the last thing on your mind, but there is a good reason to be clued in! TAX REFUND. 

For many of us, filing taxes can be stressful, even daunting—yet, it's avoidable - why not leave this to a professional and ensure you get the maximum you are owed carefree? 

Here are the most important Q&A guide that can help with the basics of what you need to know about the Oz tax and how to claim your refund. 

Do students need to file a tax return in Australia?

Yes.

Anybody that works in Australia needs to file a return at the end of the financial year regardless of income earned. This obligation applies especially to international students who earned income in Australia. Good news is that by completing a tax return you will make sure your tax affairs are in order and you are looking at a better chance of getting new Visa granted and extend your stay . 

What happens if you don't file a tax return?

If you don’t file a tax return you’re leaving yourself wide open to fines and penalties. But don’t panic, filing a tax return is easy enough to do, especially when you engage a professional to do for you.

Plus you will be missing out on getting some money back. Average student tax refund is estimated at AUD $2600, surely you can use the funds to support your studies or activities.

When do I apply for tax refund? 

The Australian financial year runs from 1 July until 30 June every year. Individuals have from 1 July until 31 October to file their tax returns. Appointed tax agents have extended deadline of submission and that can help get those fines out of the way if you’ve missed the deadline! 

Australian resident or non-resident for tax purposes? 

The main requirement to be deemed a resident for tax purposes is that you have continuously resided in Australia for a period of 183 days (6 months). If you enrolled in course that lasts for less than 6 months and you intend to leave right after you finish, will be considered non-resident for tax purposes. You are still required to lodge a tax return, but you won’t be able to use the tax-free threshold of AUD 18,200 and higher tax rate applies onto your earnings. 

Do I need to report my foreign income?

Student Visa holders are not required to declare their foreign income and be taxed on it. You only need to report any income earned in Australia. 

How do I lodge my tax return?

The decision to complete your tax return yourself or pay a professional to do it is an individual one. This ultimately depends on your tax circumstances, available time, financial situation and individual preference.

You can always lodge your tax returns on your own through ATO or trust a registered tax agent and make sure your tax return is in full compliance with the law.

Quickest way to start your return is by completing a short questionnaire with your up-to-date contacts, your full employment history and pay documents. You will then get a free estimate of your maximum legal refund within the next few days.

What documents do I need?

The more info you can provide the better. We recommend hanging on to the following:

• Payment documents e.g. payslips (your final payslip from each job is the most important so keep it safe);
• Work-related expense receipts e.g. for Uniform, Work Courses, Tools/Equipment or Car/transport;
• Self-education expenses – if you enrolled in a course to support your main activities at work or are required to undertake such to improve your skills and knowledge at your work place, please keep your statements, receipts or invoices as you may be able to use this as deduction on your return; 

I plan to work for myself. What do I need to provide?

If you decide to work on your own make sure you keep ALL of your invoices and ensure they account for all work completed. Individuals working under ABN are required to lodge a tax return after the end of each tax year. 

How long does it take to get the refund?

Refunds lodged online (after the end of the tax year) are usually issued in 7-10 business days.

Super Refund for Students

If you earn over $450 a month in Australia your employer is legally obliged to pay into a superannuation fund for you. They should be paying 9.5%of your basic earnings (in addition to your wages) into a nominated superannuation fund. Many employers will have a default super fund that they will pay into, however, we recommend that you try to only have ONE fund.

All you need to do is give each of your employers the name of the fund and your member number so they continue to pay into the same one. This means you’ll be able to claim a refund from one provider rather than trying to track down refunds from lots of different funds. 

Can I claim my super refund back?

Yes. However, you can only claim your superannuation refund when you have left Australia or your visa has expired. By law 65% of your super benefit is refundable, rest 35% are withheld in non-refundable tax by the Australian tax office. 

Get a quick estimation of your super refund here: