2025 Tax Season Guide for International Students in Australia

Disclaimer: The information provided in this article is general in nature and does not constitute financial advice. Please seek help from ATO or a registered taxation accountant for personal guidance regarding your personal circumstances.
Tax season is just around the corner.
Are you ready to launch your tax return this year? Do you understand how the Australian taxation system works, and importantly, what’s changing in the year 2025 for tax returns?
Well, we are going to cover all you need to know abour 2025 tax season guide and much more in this article.
Do you even need to lodge a tax return in Australia?
As an international student, if you are studying for more than six months, then you are considered a resident for taxation purposes in Australia.
If you are earning an income in Australia, the chances are that you will need to lodge a tax return.
But there are a couple of circumstances in which you might not be required to lodge a tax return:
- if you did not earn any income during the financial year, or
- you earned below the threshold of $18,200 and there was no tax withheld from your income.
Apart from this, most likely, you will be required to lodge a tax return.
You can check more information regarding that via this video:
Key tax dates for the 2025 year
The financial year for tax return purposes is from 1st July 2024 to 30th June 2025.
The tax lodgement period starts from the 1st July onward.
However, the ATO usually recommends waiting for a few days to lodge a tax return so that everything gets updated into the systems.
The deadline, if you are lodging your tax return by yourself, is 31st October 2025.
Now, how do you lodge your tax return in Australia?
There are three main ways you can lodge your tax return.
The first one is DIY, which means “Do It Yourself”, which can be done via your MyGov account.
If you haven’t got one, you can create a MyGov account, and then you will need to link the ATO services with it.
You can check this step-by-step process with an example of lodging your tax return in Australia.
The second way is to get help from the Tax Help program, which is run by the ATO.
It’s free for people who are earning less than $70,000 annually and meeting other eligibility requirements.
You can get help from ATO volunteers via online or by phone, or through tax help centers across Australia.
Last but not least, you can also get your taxes done through a tax accountant.
Especially if your tax return is complicated and you need to confirm if you can claim some deductions or not, then, doing your tax return with a tax accountant might be a better option.
Now, what do you report in your tax return?
The first thing is reporting your income, the money you earned in Australia.
That money could have been earned by:
- doing a part-time or casual job
- doing some paid internships
- doing some freelance or gig economy work (e.g. Uber Eats or DoorDash)
- or earning money through bank interest
- or capital gains from your investments (e.g. cryptocurrency or share trading)
- getting scholarships.
Yeah, it might be surprising for some of you that scholarships could also be taxable in Australia. Not all of them, but some; it depends upon the scholarship agreement.
So, our suggestion would be to reach out to your scholarship provider (e.g, university, private organisation or a government body) and ask them if your scholarship is taxable or exempt from taxes.
Also, you’ll need to report any deductions you are claiming.
Deductions are work-related expenses or other eligible costs from the financial year that can lower your taxable income.
Your tax is calculated on your taxable income, which is calculated like income minus deductions.
However, when claiming these deductions, you need to keep in mind that
- it must be paid by you,
- it must be related to your job,
- It is not a private or domestic expense and
- you must have record for it, (e.g receipts).
Now, there’s no one-size-fits-all here for the deductions.
So, our suggestion would be to check on the ATO website or speak to a registered tax accountant who can help you understand which deductions you can claim in your tax return.
Some examples of deductions that we have seen on the ATO’s website that people could potentially claim in their tax returns:
- work-related expenses,
- home office expenses,
- uniform-related expenses,
- work-related travel expenses,
- any tools, equipment, computers purchased for work,
- any donations for specific organisations
- any professional memberships
- any tax agent fee
- and some other deductions.
You can read more about these deductions on the ATO’s website.
How about the Medicare levy?
Medicare is Australia’s public health system, which is funded by the Medicare levy that is paid along with your taxes each year.
For most taxpayers in Australia, it is 2% of the taxable income. But just keep in mind that there could be a Medicare levy surcharge as well for some taxpayers.
But most international students are usually not eligible for Medicare benefits.
They have to purchase private health insurance, OSHC, Overseas Student Health Cover.
So, chances are that you are not required to pay the Medicare levy. But you need to get a Medicare entitlement statement from Services Australia before lodging your tax return.
It is free to get one.
But make sure to get this statement before lodging your tax return, and you have to get a new one each year.
So, even if you already got one for the previous tax year, you’ll still need to get a new one for this tax year.
What happens after you lodge your tax return?
After lodging, ATO (Australian Taxation Office) will process your tax return.
Usually, it’s quite fast and straightforward process, and the ATO says that they try to process the current year’s electronic tax returns within 12 days.
Once the ATO process and finalise your tax return, they will issue you a NOA (notice of assessment).
This notice will tell you how your tax assessment was calculated and where your tax dollars are going.
After the tax assessment, you could be eligible for a refund, or owe taxes.
Now, there is a myth among international students that they will get all their taxes back after filling their tax return.
It might be the case if you are earning below the threshold of $18,200, but it certainly is not if you earn more than that threshold.
Each pay, employers in Australia are required to deduct tax from your salary.
And the tax assessment will tell you whether you’re going to get a refund or owe money to the tax office.
So what’s changing for this 2025 tax season?
The major change we have is regarding the tax slabs for the year 2024-2025.
The changes are in the tax brackets and the rates for these brackets, which are given below in the table.
Basically, every Australian taxpayer is pretty much going to have some sort of tax relief in this financial year.
Some quick tax season reminders
First, make sure that you keep all your records for your income and for deductions that you are claiming.
The ATO expects us to keep a record for at least five years from the date of lodgement.
Importantly, get your Medicare entitlement statement from Services Australia before lodging your tax return.
Watch out for any scams that happen during this time of year, especially text messages or emails requesting payments.
All the best with the your tax return.




