Australian Income Tax on a Student Visa
Income Tax rates are different depending on whether a person is classed as Tax Resident in Australia or not.
The main difference is that a Tax Resident earner is able to earn the first $18,200 [2014-15] free of any tax.
Many people with Student Visas, who realise they are NOT Australian Residents wonder how this affects them.
The following two statements should explain the difference:
- If you are visiting Australia for more than six months, and for most of that time work in the one job and live at the same place, you are generally an Australian resident for tax purposes.
- If you are holidaying in Australia, or are visiting for less than six months you are generally NOT an Australian resident for tax purposes.
Residents Tax Rates for 2014-15
| Taxable income | Tax on this income |
|---|---|
| 0 – $18,200 | Nil |
| $18,201 – $37,000 | 19c for each $1 over $18,200 |
| $37,001 – $80,000 | $3,572 plus 32.5c for each $1 over $37,000 |
| $80,001 – $180,000 | $17,547 plus 37c for each $1 over $80,000 |
| $180,001 and over | $54,547 plus 45c for each $1 over $180,000 |
Non Residents Tax Rates for 2014-15
| Taxable income | Tax on this income |
|---|---|
| 0 – $80,000 | 32.5c for each $1 |
| $80,001 – $180,000 | $26,000 plus 37c for each $1 over $80,000 |
| $180,001 and over | $63,000 plus 45c for each $1 over $180,000 |
Below is a link to the Australian Taxation Office’s ”Individual income tax rates” page.
Below is a link to the Australian Taxation Office’s ”Residency – overview” page.