Filing a tax return for students in Australia can be very daunting. You do not know the process and the information needed for it. Once you have professional help and knowledge of the procedure, you will get benefits like lower tax rates and tax offsets.
If you have been living in Australia and earning a specific amount of money, then you are eligible for tax returns. You can find many tax calculator in Australia to get the possible amount you have to pay. The tax year is from July 1 to June 30 in Australia, and people have time till October to lodge the taxes.
Mostly these international students are often in this mess, and this situation can be scary for them. But there is nothing to worry about when you have all the information ready in one place. Here is a simple guide to learning about tax return for students in Australia.
Everything to know about tax return for students in Australia
1. Duration of your residency
If you have lived in Australia for more than six months, you are considered a resident and eligible for tax returns. You can even check this information with the Australian Taxation Office. Many students are still not eligible due to their income, so you can ask a tax agent or check the ATO website for better clarification.
Now, if you find out that you are a resident, you might be making $18,200 or more. If your taxable income is the same, you would be able to get a tax-free threshold. So, you won’t have to pay any more income tax till the same year, June 30.
Students can also apply for a refund if they are an employer and the part-time job salary is already tax-deductible. You can get that deducted amount from your salary by filing the tax.
2. How can students lodge a tax return?
For an international student’s tax return, you get the information on your total income and the amount deducted from your salary. The ATO checks and gives you a refund if you are eligible for it. The students can get an easy refund from the ATO’s website if they present their case and file taxes professionally.
3. Requirements for lodging student tax return
The tax file number is one of the most important things you will need. The bank might tax your income at a higher interest rate if you don’t have a TFN. You will also find an online form that you have to fill out on ATO’s website. These forms are also available at the physical office.
Moreover, these are the other important documents to file a tax return for students in Australia.
- Bank statements to provide proof of the interest
- Payment summary from the part-time job you have been doing
- Dividend slips
- Photo ID, including ID card and passport
- You can also bring other invoices, receipts, and work expenses
4. What are the main types of income included in the return?
Below are several sources that show your income, which you must include in your tax return. You can also use these to get a potential amount from the online tax return calculator for international students.
- Bonuses, allowance, dividend income, gratitude tips
- Wages and salaries from your full-time and part-time jobs
- Bank interest rate income
- Government allowances
- Capital gain that you get when you sell your assets
- Business income if you are running a company online or physically in the country
- Payment distribution between partners of a firm
5. What form of deductions can you claim?
You can get deductions in the form of the following:
- For your commute expenses
- Phone and internet expenses
- Get deductions in uniform for your job
- All home and office expenses include the cooling, printer, computer, heating, lighting, etc.
Should you file a tax return in Australia or seek a professional tax agent?
There can be multiple scenarios, like filing taxes as a student with no income. You have to be prepared for every situation and have all the important documents ready during tax season. Commonly, mostly international students pay more tax than their income.
Lodging taxes can be a burden if you do not know how or when to do it. Moreover, your bank information should always be ready to get the tax refunds transferred immediately. Professional help means always being one step ahead and prepared for every circumstance.