Australian Tax / Tax Return Guide
Everything about Australian tax from TFN application to Tax Return refund.
1. TFN (Tax File Number) Application
What is a TFN?
A Tax File Number is a unique identifier used for all tax matters in Australia. Essential for employment, bank accounts, and Tax Returns. Without a TFN, the highest tax rate (45%) applies.
Online Application Process
- Visit the TFN application page on ATO website
- Confirm you are in Australia on a valid visa
- Enter personal and passport details
- Enter Australian residential address (for postal delivery)
- Application complete — arrives by post in ~28 days
2. Tax Return Process
Australian Financial Year
The Australian financial year (income year) runs July 1 to June 30. Self-lodgment through myTax is due by October 31; a registered tax agent can extend the deadline, but you must engage the agent before October 31. See the 'Deadlines' section below for details, including early lodgment when leaving Australia.
Choose Your Method
Free. Lodge online via MyGov. Suitable for simple income (salary only).
$100-$300. Recommended for complex income/deductions. Agent fees are deductible next year.
Key Deduction Items
- Work-related clothing/uniform purchase and laundry
- Work tools, equipment, and protective gear
3. Lodgment Deadlines and Early Lodgment When Leaving
The Australian income year runs from July 1 to June 30. Once the financial year ends, you must lodge your Tax Return within the deadlines below.
- Self-lodgment (myTax): by October 31 — lodge between July 1 and October 31 after the income year ends (ATO How to lodge, checked 2026-07)
- Using a registered tax agent extends the deadline — agents have their own lodgment program with later due dates. You must engage the agent before October 31, and outstanding prior-year returns can disqualify you from the extension
4. Resident Income Tax Rates (FY2025-26)
Australian residents for tax purposes get a tax-free threshold — no tax on the first $18,200. Below are the ATO's resident income tax rates for FY2025-26 (July 1, 2025 to June 30, 2026).
| Taxable income | Tax on this income |
|---|---|
| $0 - $18,200 | Nil (tax-free threshold) |
| $18,201 - $45,000 | 16c for each $1 over $18,200 |
| $45,001 - $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 - $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
These rates do not include the Medicare levy of 2%. Foreign residents get no tax-free threshold and pay 30% on the first $135,000 — see the tax residency and non-resident tax guide under 'Related Guides' below. Note: under legislated tax cuts, the 16% rate drops to 15% from July 1, 2026 (FY2026-27) and to 14% from July 1, 2027 — the table above applies to income earned up to June 30, 2026, the year being lodged now. Source: ATO — Tax rates: Australian residents (FY2025-26, checked 2026-07)
5. Medicare Levy and Medicare Levy Surcharge
Most resident taxpayers pay a Medicare levy of 2% of taxable income on top of income tax. Low-income earners pay less: for FY2025-26 (raised in the May 2026 Budget, backdated to July 1, 2025), singles with taxable income of $28,011 or less pay no levy, and a reduced levy applies between $28,011 and $35,013 (family threshold $47,238 combined, plus $4,338 per dependent child). The ATO calculates the reduction automatically when you lodge. People not entitled to Medicare benefits (including some temporary visa holders) can apply for an exemption with a Medicare Entitlement Statement.
The Medicare Levy Surcharge (MLS) is a separate, additional charge on top of the levy. For FY2025-26, if your MLS income exceeds $101,000 for singles ($202,000 for families) and you do not hold an appropriate level of private hospital cover, an extra 1% to 1.5% applies depending on your income tier.
Source: ATO — Medicare levy · ATO — Medicare levy surcharge income, thresholds and rates (checked 2026-07)
6. How to Use MyGov / myTax
Creating a MyGov Account
MyGov (my.gov.au) is the integrated portal for Australian government services.
- Create account at my.gov.au (email required)
- Set up security (password, security questions, 2FA)
- Select 'Link a service' and choose ATO
- Verify identity (TFN + additional info)
Lodging Tax Return via myTax
- Log in to MyGov, go to ATO, select myTax
- Pre-fill data: income reported by your employer loads automatically — wait until your income statement shows 'Tax ready' (usually late July) before lodging
- Review income, then enter deductions
7. WHV Tax Guide
Working Holiday Tax Rates (2025-26)
| Taxable Income | Tax Rate |
|---|---|
| $0 - $45,000 | 15% |
| $45,001 - $135,000 | $6,750 + 30% (excess) |
| $135,001 - $190,000 | $33,750 + 37% (excess) |
| $190,001+ | $54,100 + 45% (excess) |
No TFN Warning
Without a TFN, the highest rate of 45% applies to employment and bank interest income.
ABN and Tax (Sole Trader)
If working under an ABN, employers don't withhold tax. You must lodge quarterly BAS and pay tax yourself.
Advanced Tax Guide — Lodgment Timing, Deductions in Practice, Side Income, How Tax Is Calculated, Dealing with the ATO, and Migrant Scenarios
Once you have a TFN and have lodged your first return through myTax, the details are what decide whether you get a refund or a tax bill. This guide covers pre-lodgment preparation and timing, how deductions are calculated and substantiated, platform, investment and crypto income, how rates and offsets actually work, dealing with the ATO after you lodge, and the scenarios unique to migrants from your first year in Australia through to departure. Rates and rules can change with the financial year, your visa type and your residency status, so always confirm the final details on the official ATO website (ato.gov.au).
Before You Lodge — Confirming Your Income Data and Getting the Timing Right
Check Your Income Statement Is 'Tax Ready' (STP Finalisation)
Paper payment summaries (group certificates) have been abolished. Your annual salary and withholding, reported by your employer through Single Touch Payroll (STP), now appears under Employment → Income statements in the ATO service linked to your myGov account. Employers must finalise this data by 14 July each year, at which point the status changes to 'Tax ready'. If you lodge while it still says 'Not tax ready', the figures may change during finalisation and force you to amend your return, so it is safest to wait until every employer's income statement shows Tax ready. If it still is not finalised past mid-July, contact your company's payroll team first.
When Pre-fill Data Actually Arrives — Why Lodging in Early July Is Risky
myTax pre-fill data does not all arrive at once. Salary data typically lands in mid-July, bank interest, private health insurance (PHI) and Centrelink payment details in late July, and dividends and managed fund distributions often not until August or later. If you rush to lodge in early July, missing income can later trigger an amended assessment plus interest through ATO data matching, so unless you are in a hurry, lodging from August onwards is safer. Income not yet showing in pre-fill is still income you must report — the responsibility to lodge a complete return always sits with you.