Student Tax Lodgement
An international student who has registered and enrolled for a course which is offered by any education institute in Australia and the duration of the course is six months or more then that student will be considered as an Australia resident who is liable to pay tax. The student will have to pay tax on their earnings just like other residents. This person will also qualify for the benefits provided by the Australian tax system including the tax free threshold, tax offsets and lower tax rates as compared to a foreign resident.
The residents in Australia usually have to state their total income which they have received as a salary or collected in Australia or in any other country for the purpose of Australian tax return. The international students are considered as a temporary resident because they only have a student visa which allows them to stay for few years which means that they stay only for a temporary period. In case of a temporary resident of Australia, the international student does not have to pay tax on their total foreign income and he does not have to officially state it for the purpose of Australian tax return but they have to state the income which they have earned in Australia as well as any other income that is earned while working overseas as an employee during the period of your stay in Australia as a temporary resident.
If the income earned is more than the threshold amount which is $ 18,200 then the international student has to register for a tax return at the end of financial year but if the income earned falls below this amount in the previous financial year and all the tax has been paid then he is not required to register for a tax return. In case a student has earned an income which falls below the threshold amount and he has made the tax payment then he can register for a return because there is probability that he can get a refund for the tax payment submitted by him. There is another case in which student has to give a non lodgment advice to the ATO when he does not require registering for a tax return because his earnings fall below the threshold amount and he has paid all the tax.
There is a time period that is 1st July to 31st October during which international students can lodge tax return. All the students who are studying for more than six months have to pay taxes and lodge tax returns. The circumstances in which international students may not require to lodge a tax return are few. Australian Taxation Office (ATO) considers the international students staying in Australia on student visa as a temporary resident so these students are not required to state their foreign income and pay tax on it. If that student has earned income salary from a job which he has done overseas for a short period while he is on student visa then he is required to declare that income as well. International students are considered non residents for the purpose of Australia tax lodgment if they have enrolled in course which can be completed in less than six months so their stay would also be less than six months and they have to leave Australia after completion of that course. In case, international student did not lodge for tax return then it is their responsibility to notify the ATO so it is better if the person have all the necessary information before planning to study in Australia.
Students can check the ATO website and register online for the tax return which is quite easy and can be done in just few minutes. One has to create an account on myGov for this purpose and then connect it with the ATO. The instructions on filling the return online are giving to the person which he has to follow carefully. There are two more ways in which international students can lodge a tax return. They can either lodge the return through a tax agent who should be officially registered or submit a paper tax return. The student can take help from trained volunteers by using the tax help program. Students need tax file number, photo ID and PAYG payment summaries for tax lodgment purposes.