Foreign Worker Tax Guide 2025

This article was first published in May 2025. Tax rules, rates and thresholds may have changed since then, so please check the current position or ask us before acting.

What You Can (Legally) Claim in Australia

So, you’ve secured a job in Australia — welcome aboard! But then comes your first payslip, and a good chunk of your earnings is taken out for... tax? Don’t worry — you’re not alone, and yes, you can get some of that money back.

In this guide, Supertax breaks down how taxation works for foreign workers in Australia — including exactly what you can claim, how residency status affects you, and how to potentially get a tax refund. Let’s simplify things.

First, Understand How You’re Taxed

There are two main tax statuses for foreign workers:

1. Resident for Tax Purposes

• You get the tax-free threshold and pay tax at lower progressive rates.
• Applies if you’re staying long-term or meet residency conditions (not just visa-based).

2. Non-Resident for Tax Purposes

• You pay tax from the first dollar you earn — no tax-free threshold.
• Flat rates apply, common for Working Holiday Makers (417/462) and short-term visitors.

Pro Tip: Your visa doesn’t automatically determine your tax status. It’s about how long you stay, where you live, and your lifestyle. Use the ATO’s tax residency tool to confirm.

How Your Visa Affects Tax Rates

NDA Countries: Tax Fairly Like Locals

If you’re from a country with a Non-Discrimination Article (NDA) in their tax treaty with Australia, and you meet residency conditions, you get equal tax treatment as Australians.

Countries with NDA protection:

Germany, United Kingdom, Japan, Norway, Finland, South Africa, Turkey, Chile

That means:

• Full tax-free threshold
• Progressive tax rates
• Claim all standard deductions

More details: ATO Tax Treaty Guide

What You Can Claim as a Foreign Worker

Even if you’re here temporarily, the ATO allows legitimate work-related deductions. Here’s what you can claim:

Work-Related Expenses

• Tools, equipment, PPE (like steel-capped boots or gloves)
• Uniforms with logos
• Phone bills (if work-related)
• Union & membership fees

Travel Between Worksites

• Driving from one job site to another (same day)
• Not your regular commute from home to work

Self-Education

• Job-specific training (e.g. RSA, White Card, barista courses)

What You Can’t Claim

• Flights to Australia
• Rent or accommodation unless 100% work-mandated
• Visa application or migration agent fees

Can You Get a Tax Refund?

Yes — even as a foreign worker, you might get a refund if:

• You earned under $45,000 on a working holiday visa
• You were taxed incorrectly as a non-resident
• You’re eligible to claim deductions

Permanent residents and long-term visa holders get full tax benefits, including:

• Tax-free threshold
• Medicare levy (if applicable)
• Full deduction rights

Common Mistakes to Avoid

• Claiming rent/accommodation without work requirement
• Assuming your visa automatically makes you a resident
• Not lodging a tax return (you must if you earned income!)
• Ignoring deductions — many miss out on $$

Lodge Easily — With Supertax

We help you:

Identify claims you didn’t know you were entitled to

Maximise your refund

Avoid common compliance mistakes

Start Your Tax Return Today

Let’s take the stress out of tax time. Whether you’re on a working holiday, student visa, or just starting out — Supertax helps foreign workers across Australia claim smarter and stay compliant.

• Call us: 03 7074 8818
• Email: info@supertax.com.au
• Visit: www.supertax.com.au

Supertax – Where Expertise Meets Every Worker.

This article contains general information only and does not take your personal circumstances into account. Tax and superannuation rules change, and some measures discussed may be subject to legislation. Speak with a registered tax agent before acting.