Tax time in Australia is genuinely straightforward for most migrants and visa holders. The ATO’s free myTax tool pre-fills most of your income data automatically. Most people lodge in under 30 minutes. And a significant proportion of migrants — particularly working holiday makers — are owed a refund. Ensure you are prepared to lodge your Australian tax return 2026.

The catch is knowing which rules apply to you. Australia’s tax system treats different visa holders differently: the rate you pay, whether you get a tax-free threshold, and what you can claim in deductions all depend on your residency status for tax purposes — which is not the same as your visa status or your actual residency status.

This guide covers everything you need to know to lodge your Australian tax return 2026 for the 2025-26 financial year.

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Key dates for the 2025-26 tax year

Date	What happens
1 July 2025	Start of the 2025-26 financial year
30 June 2026	End of the 2025-26 financial year
1 July 2026	myTax opens for 2025-26 lodgement
14 July 2026	Employers must finalise income statements — wait until after this date to lodge
Late July 2026	Best time to lodge — most pre-fill data is complete by now
31 October 2026	Self-lodgement deadline via myTax
31 October 2026	Register with a tax agent before this date to get extended deadline
15 May 2027	Extended deadline for registered tax agent clients

The most important rule: Do not lodge before 14 July. Your employer’s income statement data will not be finalised in the ATO’s system before then. Lodging early means lodging with incomplete information — which causes errors and possible amendments. Most accountants advise waiting until late July.

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Step one: understand your tax residency status

Before anything else, you need to know whether you are an Australian resident for tax purposes or a foreign resident for tax purposes. This is not based on your visa type — it is based on the ATO’s assessment of whether Australia is your primary place of residence.

Why it matters: Residents get a AUD $18,200 tax-free threshold and are taxed at progressive rates. Foreign residents pay tax from the first dollar at higher flat rates with no threshold.

Australian tax residents (most migrants on skilled or permanent visas)

If Australia is your home and you intend to stay, you are almost certainly an Australian resident for tax purposes. This includes:

• Permanent residents (all subclasses)
• Skilled visa holders (482, 189, 190, 491) who live and work in Australia
• Most migrants who have been in Australia for more than six months

Tax residents pay the following rates for 2025-26:

Taxable income	Tax rate
AUD $0 – $18,200	0% (tax-free threshold)
AUD $18,201 – $45,000	19%
AUD $45,001 – $120,000	32.5%
AUD $120,001 – $180,000	37%
AUD $180,001 and over	45%

Medicare Levy: Australian tax residents also pay a 2% Medicare Levy on top of income tax, unless exempt. Most temporary visa holders from non-RHCA countries are exempt from the Medicare Levy — check your entitlement at ato.gov.au.

Claim the tax-free threshold from your primary employer only (the job where you earn most). Do not claim it from multiple employers simultaneously.

Foreign residents for tax purposes

If you are visiting Australia temporarily, have not established a home in Australia, or are clearly intending to return overseas, you may be a foreign resident for tax purposes.

Foreign residents pay these rates for 2025-26:

Taxable income	Tax rate
AUD $0 – $135,000	32.5% (from first dollar — no tax-free threshold)
AUD $135,001 – $190,000	37%
AUD $190,001 and over	45%

Foreign residents are not liable for the Medicare Levy and do not get the Low Income Tax Offset (LITO).

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Working holiday makers: different rules, flat rate

If you are in Australia on a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462), special tax rules apply regardless of how long you stay.

Flat tax rate for working holiday makers:

Taxable income	Tax rate
AUD $0 – $45,000	15% (from first dollar)
AUD $45,001 – $120,000	32.5%
AUD $120,001 – $180,000	37%
AUD $180,001 and over	45%

Key points for WHMs:

• No tax-free threshold — you pay 15% from your first dollar of income
• No Medicare Levy for most WHMs (unless also a tax resident from an RHCA country)
• Your employer must be registered with the ATO as a working holiday maker employer to withhold at 15%; if they are not registered, they withhold at 32.5% — you can claim the difference back in your return
• WHMs are not required to lodge a tax return if all income was from salary or wages and total taxable income was below AUD $45,001 — but lodging is recommended if any tax was withheld, as you may be entitled to a refund

Non-discrimination article (NDA) countries: Citizens of Chile, Finland, Germany, Israel, Japan, Norway, Turkey and the UK may be entitled to be taxed as Australian residents rather than WHMs under tax treaty non-discrimination articles — potentially resulting in the tax-free threshold applying. This is complex and worth checking with a tax agent.

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Do I need to lodge a tax return?

You generally need to lodge a return if any of the following apply:

• You earned income from employment, business or investments
• Tax was withheld from your pay (PAYG)
• You want to claim deductions
• You received any government payments
• You had capital gains from selling shares, property or crypto

Even if your income was below the tax-free threshold: If any tax was withheld from your pay, lodge a return — it is the only way to get that money back.

If you did not earn any income: Submit a Non-Lodgement Advice (NLA) through myTax to notify the ATO you do not need to lodge. Ignoring the tax year entirely — without lodging or submitting an NLA — can attract penalties.

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How to lodge: step by step

Option 1: Lodge yourself via myTax (recommended for most migrants)

myTax is the ATO’s free online tax return tool. It pre-fills most of your income data automatically from your employer, bank and other sources.

Step 1: Set up myGov Create a myGov account at my.gov.au if you do not have one. Link it to the ATO. You will need your TFN and some identity documents to link.

Step 2: Wait until after 14 July Do not lodge before your employer finalises your income statement. Log into myGov and check if your income statement shows as “Tax ready” — this means your employer has finalised it and you can lodge.

Step 3: Check the pre-filled data myTax pre-fills your income from employer, bank interest, dividends, private health insurance and government payments. Review it carefully — you are responsible for its accuracy even if it was pre-filled.

Step 4: Add deductions Add any work-related deductions you are claiming. You must have records (receipts, invoices, diary entries) for everything.

Step 5: Declare all other income Add any income not already pre-filled — cash income, rental income, income from overseas, capital gains.

Step 6: Review and submit Double-check your bank account BSB and account number for your refund. Submit. Refunds from electronically lodged returns are typically processed within 2 weeks.

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Option 2: Lodge through a registered tax agent

A registered tax agent lodges on your behalf, usually for a fee of AUD $100-$300 for a straightforward return. The fee is tax-deductible the following year.

Benefits of using a tax agent:

• Extended deadline to 15 May 2027 (if you register before 31 October 2026)
• Expert advice on complex situations: overseas income, rental property, investments, PR transition, DASP
• Agent fee negotiates penalty remission if you have overdue returns

Register with a tax agent before 31 October 2026 even if you do not lodge until later — this locks in the extended deadline.

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What deductions can migrants claim?

Deductions reduce your taxable income and increase your refund. You can only claim deductions where:

• You spent the money yourself and were not reimbursed
• The expense is directly related to earning your income
• You have a receipt or record to prove it

Common deductions for migrants and visa holders

Work-related expenses:

• Tools and equipment used for work (items under AUD $300 can be claimed in full; items over AUD $300 are depreciated)
• Uniforms and protective clothing — including branded work uniforms with a logo. Standard office attire (black pants, white shirts) does not qualify
• Laundry costs for work uniforms — AUD $1 per load for work clothing only; AUD $0.50 if mixed with personal items; up to AUD $150 can be claimed without receipts
• Professional memberships, subscriptions and union fees
• Work-related phone and internet costs — the work-use portion only

Home office costs:

• If you worked from home, you can claim a fixed rate of AUD $0.70 per hour for all running costs (electricity, internet, phone) — no receipts needed, but you must keep a record of hours worked from home

Work-related study:

• Costs of study directly related to your current job (not a new career direction)

Car expenses:

• Claim up to 5,000km at AUD $0.88 per km (cents per km method) without a logbook; over 5,000km requires a logbook

What you cannot claim:

• Travel between home and work (this is a personal expense, not a work expense)
• Clothing that is not a specific work uniform or protective gear
• Meals (unless travelling away from home overnight for work)
• Childcare

The ATO audits visa holders who claim excessive deductions. Only claim what you can prove.

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Temporary residents and overseas income

If you are a temporary resident (skilled temporary visa, student visa, working holiday visa), you generally only pay Australian tax on your Australian income. You do not need to declare:

• Interest earned in overseas bank accounts
• Income from overseas employment (from before you arrived)
• Overseas investment income

Exception: Australian tax residents (most PR holders and long-term residents) must declare worldwide income.

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Your Tax File Number (TFN)

Your TFN is the foundation of your Australian tax affairs. Without it:

• Your employer must withhold tax at 47% — the highest rate
• Banks must withhold 45% on interest earned
• You cannot link your myGov account to the ATO

Apply for your TFN at ato.gov.au on the day you arrive in Australia. Processing typically takes a few days digitally; up to 28 days by post. Once you have it, provide it to your employer immediately and add it to your bank account.

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Superannuation

Your employer must pay superannuation (super) equal to 12% of your ordinary time earnings on top of your wages — not deducted from your pay. This applies to all workers in Australia including visa holders.

Check your super is being paid: Log into myGov and check your super balance. Employers are required to pay super each pay cycle from 1 July 2026 (Payday Super) — you should see regular contributions rather than quarterly lump sums.

Departing Australia Superannuation Payment (DASP): When you leave Australia permanently on a temporary visa, you can claim your superannuation back. Apply at ato.gov.au/dasp.

A 35% withholding tax applies to DASP claims for working holiday makers. Still claim it — it is your money.

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Late returns and penalties

Failure to Lodge (FTL) penalty: If you miss the 31 October deadline and have not registered with a tax agent, the ATO charges AUD $330 per 28-day period overdue, up to a maximum of AUD $1,650.

If you have overdue returns from previous years: Lodge them as soon as possible. It is always better to lodge late than not at all. The ATO may remit penalties when you come forward voluntarily.

Do not ignore overdue returns: The ATO keeps records indefinitely. Debt does not expire.

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Lodging from overseas

If you have left Australia permanently before 30 June, you can lodge your tax return early. You can lodge online through myTax from overseas — you need a myGov account with an active ATO link. Set up Digital ID (myID) access before you leave Australia to ensure overseas access.

Refunds can be paid to an Australian bank account (most common) or to an overseas account via SWIFT transfer.

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FAQ’s (Frequently asked questions)

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This guide is for general information only and does not constitute financial or tax advice. Tax rules are subject to change — always verify current requirements at ato.gov.au or consult a registered tax agent for your specific situation. Last updated July 2026.

Sources: Australian Taxation Office — myTax, working holiday makers tax, lodge from outside Australia (ato.gov.au) | SettleMate — Australian Tax Guide for Migrants 2025-26 (14 July 2026) | DigiTax — How to Lodge Your Tax Return Online 2026 (July 2026) | RPS Accountants — How to Lodge Your Tax Return in Australia 2026 | SettleAU — Tax Return Guide for Visa Holders 2025-26 | Etax — Australian tax return deadline 2026 | AMA Accountants — Simple Guide to Australian Tax Returns 2026