Tax Return in Australia for Nepali Students: Complete Guide 2026 (Get Your Refund)

If you worked in Australia during the financial year (1 July to 30 June), you almost certainly need to lodge a tax return — and the good news is you will very likely get money back. Most Nepali students are treated as Australian residents for tax purposes, which means a generous tax-free threshold and, very often, a refund of $1,000 to $3,000. This guide walks you through everything you need to know about lodging your tax return as a Nepali student in Australia.

Do You Need to Lodge a Tax Return?

Yes, if either of these applies to you for the financial year (1 July 2025 – 30 June 2026):

• You earned any income in Australia, OR
• Your employer withheld tax from your pay (check your payslip for "PAYG" tax)

Since almost every student job withholds some tax, most working students must lodge. If you did not work at all, submit a "non-lodgement advice" through myGov instead.

Tax Residency: Are You a Resident or Non-Resident?

This is the most important thing to understand. Most international students are residents for tax purposes, even on a temporary visa. The ATO uses the "183-day rule" — if you were in Australia for 183+ days in the financial year, you are likely a resident.

If your employer set up your TFN declaration as "non-resident," they have been over-withholding tax — which means a bigger refund when you lodge.

The Tax-Free Threshold

If you are a resident for tax purposes, the first $18,200 you earn each financial year is tax-free. If you earned less than $18,200 and your employer withheld tax, you will get all of it back as a refund.

You claim the threshold by ticking the box on the TFN declaration form your employer gives you. Claim it with only one employer (usually your main job).

Medicare Levy Exemption — Don't Miss This!

Most international students do not have full Medicare access (you have OSHC instead). This means you can claim a Medicare Levy Exemption, which saves you the 2% Medicare levy — potentially $500–$1,500 extra in your refund.

To claim the exemption, you need a "Medicare Entitlement Statement" from Services Australia confirming you were not eligible for Medicare during the financial year. Apply for this before lodging your tax return — it can take a few weeks.

What You Can Claim as Deductions

Deductions reduce your taxable income, which increases your refund. Common deductions for students:

• Work-related expenses — uniforms, protective clothing, tools, equipment
• Self-education expenses — if your study is directly related to your current job (e.g., studying accounting while working as a junior accountant). Tuition fees are generally NOT deductible for student visa holders.
• Travel between jobs — if you have multiple jobs, travel between them is deductible
• Charitable donations — donations to registered charities (over $2)
• Tax agent fees — the cost of using a tax agent is deductible

Warning: Do not claim deductions you cannot prove. Keep receipts for everything. The ATO can audit you up to 5 years back.

How to Lodge Your Tax Return (Free, Online)

What You Need

• Tax File Number (TFN)
• myGov account linked to ATO online services
• Your income statements (your employer reports these to the ATO; they pre-fill from mid-July)
• Your bank details (for refund deposit)
• Medicare Entitlement Statement (if claiming exemption)
• Receipts for any deductions you want to claim

Step-by-Step Process

1. Wait until late July — this gives the ATO time to pre-fill your income information from your employer
2. Log into myGov and go to ATO online services
3. Select "My tax" — this starts the tax return process
4. Check your personal details — make sure your name, address, and bank details are correct
5. Review your income — check that all your employers are listed and the amounts are correct
6. Claim deductions — enter any work-related expenses, donations, or other deductions
7. Claim Medicare exemption — if you have your Medicare Entitlement Statement
8. Submit — review everything and submit your return
9. Receive your refund — the ATO pays refunds in 2–4 weeks (12 days on average if you use myTax)

Deadline

The deadline for self-lodging is 31 October 2026 for the 2025-26 financial year. If you use a registered tax agent, you usually get an extension until May 2027.

Using a Tax Agent vs DIY

Common Mistakes to Avoid

1. Not claiming the Medicare exemption — this is the most common missed deduction for international students
2. Lodging too early — wait until late July so all your income is pre-filled
3. Claiming tuition fees — tuition is generally NOT deductible for student visa holders
4. Not keeping receipts — you need evidence for every deduction
5. Missing the deadline — late lodgement can result in penalties
6. Wrong residency status — most students are residents, not non-residents. Check with the ATO if unsure.

Frequently Asked Questions

How much tax refund will I get as a student?

Most Nepali students receive $1,000–$3,000, depending on how much you earned, how much tax was withheld, and what deductions you claim. If you earned under $18,200 and had tax withheld, you will get all of it back.

When can I lodge my tax return?

You can lodge from 1 July 2026 for the 2025-26 financial year, but it is best to wait until late July when your income information is pre-filled by the ATO. The deadline is 31 October 2026.

Is lodging tax return free?

Yes, lodging through myTax on myGov is completely free. Tax agents charge $100–$300 but can find additional deductions and give you more time to lodge.

What happens if I do not lodge a tax return?

You may be fined $222 per late return, and the ATO can estimate your tax d on available information (which usually results in a higher tax bill). Always lodge, even if you are late.

Related Res

• How to Find Part-Time Jobs in Australia
• First Month in Australia Checklist (TFN)
• Cost of Living in Australia
• Study in Australia from Nepal

s: Australian Taxation Office, NewLifeInAus, AusTax AI, Hamro Find. Last updated August 2026.

For more student res, visit our Nepali students in Australia guide. If you need to send your tax refund to family, compare providers on our Send Money to Nepal page.