SuperCheck AU
2026–27 rates · updated for the 15% bracket cut

International student tax guide: Australia 2026–27

Updated July 2026

Here's the single most important thing international students get wrong about Australian tax: most of you are tax residents — and that means you're taxed far more gently than working holiday makers. Many students overpay simply because nobody explains the rules. Let's fix that.

You're probably a tax resident (and that's great)

Tax residency has nothing to do with citizenship or PR. If you live in Australia in a settled way for more than about 6 months — renting a place, studying a multi-year course, building routines — the ATO generally treats you as an Australian tax resident. As a resident you get:

Compare that with a working holiday maker who pays 15% from the very first dollar: a student and a backpacker each earning $25,000 pay roughly $1,020 and $3,750 respectively. Same job, different visa — $2,700 difference.

2026–27 resident tax rates

The Medicare levy exemption most students miss

Residents normally pay a 2% Medicare levy on top of income tax. But most student visa holders aren't entitled to Medicare — and people not entitled to Medicare can claim a full Medicare levy exemption. The catch: it's not automatic.

How to claim it: apply for a Medicare Entitlement Statement from Services Australia (free, online), then claim the exemption in your tax return. On $30,000 of income this is worth about $600 a year. You can apply for past years too.

The ABN trap

If a cafe, cleaning company or delivery outfit asks you to "get an ABN" for regular shift work, alarm bells should ring. On an ABN: no tax is withheld (you owe it all at tax time), no 12% super is paid, and no workers' compensation covers you. Genuine contracting exists, but if they set your hours and supervise your work, you're an employee and belong on a TFN. If it already happened, you may still be owed super — see our unpaid super guide.

Don't forget your super

Employers must pay 12% super for students too — same as everyone. Check they actually are with our super check calculator, and when you eventually leave Australia you can claim it back via DASP (35% tax for student visa holders) — or if you get PR, it becomes your retirement fund.

How to lodge (free)

  1. Get a TFN (free, online) before or soon after starting work.
  2. Create a myGov account and link the ATO.
  3. Lodge with myTax between 1 July and 31 October — income pre-fills from your employers, you add deductions and the Medicare levy exemption.
  4. Refunds usually arrive within 2 weeks.

Frequently asked questions

›I'm an international student — am I an Australian tax resident?

Usually yes. If your course and stay mean you live in Australia for more than 6 months in a settled way, the ATO generally treats you as a tax resident. That's good news: residents get the $18,200 tax-free threshold and lower rates. Your visa being temporary doesn't stop you being a tax resident.

›Do I have to pay the Medicare levy?

Usually no — but you must claim the exemption. Most student visa holders aren't entitled to Medicare, so they can apply for a Medicare Entitlement Statement from Services Australia and then claim a full Medicare levy exemption in their tax return. That's 2% of your income back — on $30,000 of income that's $600.

›An employer wants to pay me on an ABN. Is that ok?

Be very careful. If you work set shifts under someone's direction, you're almost certainly an employee and should be on TFN with tax withheld and 12% super paid. Some employers push students onto ABNs to dodge super and entitlements — you'll then owe the tax yourself at year end and miss out on super. It's one of the most common scams targeting international students.

›I only worked part of the year. Will I get a refund?

Very likely. Employers withhold tax as if you'll earn the same amount all year. If you started mid-year or worked irregular hours, you've probably been over-withheld, and lodging your return gets the difference back.

›What happens to my super when I finish studying?

If you leave Australia permanently, you can claim it back as a DASP (taxed at 35% for student visa holders). If you transition to PR, it stays and keeps growing until retirement age. Either way, make sure your employers actually paid it — check with our super calculator.