Taxation Basics for Migrants
Tax Residency vs Visa Status
For tax purposes, your residency status is separate from your visa status. You can be a tax resident while on a temporary visa, or a non-resident while holding permanent residency. Tax residency depends on factors like where you live, work, maintain family ties, and intend to stay. Most people living in Australia for 6+ months become tax residents. Tax residents pay tax on worldwide income, while non-residents only pay tax on Australian income.
Tax Brackets 2024-25
| Income Range | Tax Rate | Tax on Range |
|---|---|---|
| $0 - $18,200 | 0% | $0 |
| $18,201 - $45,000 | 16% | Up to $4,288 |
| $45,001 - $135,000 | 30% | Up to $31,288 |
| $135,001 - $190,000 | 37% | Up to $51,638 |
| Over $190,000 | 45% | Unlimited |
Tax File Number (TFN)
Apply for your TFN online at ato.gov.au immediately after arrival. You need proof of identity and your visa documentation. Processing takes 10-28 days. Without a TFN, you'll be taxed at the highest marginal rate (47%) on all income. Give your TFN to employers, banks (for interest on savings), and super funds. Never share your TFN unnecessarily — it's sensitive personal information.
Common Deductions
- Work-related expenses: Uniforms, tools, professional development, home office costs
- Car expenses: Work-related travel (not commuting), logbook or cents per km method
- Self-education: Courses related to your current job or likely promotion
- Union fees, professional memberships: Fully deductible if work-related
- Charity donations: To registered charities over $2, keep receipts
- Tax agent fees: Cost of preparing your tax return
Lodging Your Tax Return
The financial year runs July 1 - June 30. Tax returns are due October 31 (or May 15 if using a tax agent). Lodge online through myTax (free) or use commercial software like TurboTax. Keep records for 5 years. If your situation is simple (employment income only, standard deductions), myTax is sufficient. For complex situations (multiple income sources, investment properties, business income), consider a qualified tax agent.
For Chinese Australians
If you earn income in China while tax resident in Australia, you must declare it. Australia has a tax treaty with China to prevent double taxation — you may get credit for tax paid in China. Foreign income over $1,000 must be converted to AUD using exchange rates at the time of receipt. Rental income from Chinese property is taxable in Australia. Consider professional advice if you have significant foreign income or assets.