The 6 biggest tax myths that international students believe

As an international student, I don’t need to do my tax return.

Everyone in Australia that worked with a TFN or ABN during the financial year as an employee or a contractor (ABN) MUST do their tax return. It does not matter if you are an international student, local student, backpacker or on a working holidays, you must lodge your tax return by the 31st of October every year.

I will get my money back for things I buy for work.

If you used your own money to buy things for work, then you may be able to claim it as an expense on your tax return. The things must be directly related to your job. For example, if you work in a restaurant and you need to special non-slip boots, then you can claim it on your tax return.

This does not mean that you will get the same cash back on your tax, it just means that you can use the expenses to reduce your taxable income which may help you get a higher refund.

As a student, I will always get back ALL my tax back.

Students that study in the same city for a minimum of 6 months are treated the same way as any other Australian that pays tax. This means that you will only receive ALL your tax back if you earn UNDER the tax free threshold of $18200. If in a year you earn above $18200 then you will have to pay tax.

As it is my first year in Australia, I will get back all my tax back.

If you are working and living in the same city for at least 6 months, then you the benefit of the tax free threshold. This means that your first $18200 is tax free and you can receive all your tax back.

This myth was started because most students don’t earn over $18200 in their first year in Australia but some do especially if they work a lot and if you earn over $18200 then you may only get part of your tax back or even have to pay some extra from your own pocket.

I earned under $18200, I don’t need to do my tax return

Most newcomers to Australia get confused between paying no tax and actually doing their tax return.
If you earn under $18200 and you did not pay any tax during the year, then you still need to declare your income to the ATO. This is done through a “Non-declaration” form and is a process to let the ATO know that you don’t need to do your tax for that year.
If you earne under $18200 and you DID pay tax, then it is your obligation to do your tax even if you don’t want your tax back.

I can claim back all the money I spent on public transport

The cool thing about claiming expenses is that you are allowed to claim back travel expenses between jobs. If you have more than 1 job or your job requires you to work in different locations on the same day, then you may be able to claim back the cost to get from 1 job location to the other. This does not mean that you can claim back the cost of travel to get to and from work.
Make sure you keep your receipts if you are using public transport.

If you haven’t done your tax return yet for these kind of myths, don’t believe it.