Foreign Worker Tax Guide: What You Can Claim in Australia

Published: June 2025

So you’ve landed a job in Australia — brilliant! But then... the payslip hits.
What’s this thing called “tax” nibbling away at your hard-earned dollars?

Let’s unravel the mystery of how tax works for foreign workers in Australia — and show you exactly what you can (and can’t) claim.
We’re keeping it simple, sharp, and full of money-saving tips you actually understand.

New to Australia? First, Know How You’re Taxed

There are two ways foreign workers are taxed in Australia:

1. Resident for Tax Purposes

• You may get access to lower tax rates and the tax-free threshold.

• Often applies if you're living here long-term or on certain visas.

2. Non-Resident for Tax Purposes

• No tax-free threshold.

• You pay tax from the first dollar you earn — at a flat rate.

• This includes most working holiday makers and short-term visa holders.

Hint: Your visa doesn’t always decide your tax status.
It’s based on where you live, how long you stay, and what your intentions are.

How Your Visa Affects Your Tax Rate

Use this official ATO tool to check your residency:
https://www.ato.gov.au/Calculators-and-tools/Work-out-your-tax-residency/

NDA Countries: Get Resident Rates Without Discrimination

Australia has tax treaties with countries that include Non-Discrimination Articles (NDAs). These NDAs ensure their citizens aren’t unfairly taxed while working in Australia.

Countries with NDA Protection:

• Germany

• United Kingdom

• Japan

• Norway

• Finland

• South Africa

• Turkey

• Chile

If you’re from one of these NDA countries and you meet the ATO's tax residency rules, you may be taxed the same as Aussie residents. That means:

• Access to the tax-free threshold

• Lower progressive tax rates

• Access to all standard deductions

More details: https://www.ato.gov.au/individuals/international-tax-arrangements/tax-treaties/

What Foreign Workers Can Claim on Tax

Work-Related Expenses:

• Tools, equipment, PPE (like boots or high-vis gear)

• Uniforms with logos

• Work-related phone usage

• Union fees

Travel Between Worksites:

• E.g. From your first worksite to a second location on the same day

• Not your morning commute!

Self-Education:

• Courses directly related to your job (e.g. barista training, safety tickets)

Home Office Costs:

• If you do work admin from home and meet the eligibility

You can’t claim:

• Flights to Australia

• Rent or accommodation unless it’s truly required for work

• Visa or migration agent fees

Can You Get a Tax Refund?

Yes — even foreign workers can get money back from the ATO!

Working Holiday Makers: If you earned under $45,000, you may be owed a refund (even with the flat 15% rate).
Temporary residents: If you were taxed too much or had deductions, it’s refund time!
Permanent migrants: Same rules as Aussies — tax-free threshold, full deductions.

Common Mistakes Foreign Workers Make

Claiming rent or accommodation when it’s not work-mandated
Thinking your visa = automatic tax resident
Not lodging at all (you must lodge a tax return if you earned income in Oz)
Ignoring deductions — you could be missing out!

How to Lodge (Without Going to a Tax Office)

You don’t need to queue at the ATO or make an awkward phone call.

Here's How:

1. Sign up at Gotax
   https://www.gotax.com.au/guest-user

2. Use our Deduction Grabber — tells you what you can claim

3. We crunch the numbers, you lodge, and get your refund faster.

Too easy.

Related Resources:

• Start Your Tax Return with Gotax
  https://www.gotax.com.au/my-occupation/MTM/work-tax

• Self-Education Expenses: What You Can Claim
  https://www.gotax.com.au/blog/self-education-expenses-with-gotax

• Claiming Work-Related Deductions
  https://www.gotax.com.au/blog/tax-record-keeping-tips-gotax

Welcome to Tax Down Under

No matter your visa or country, if you’ve earned income in Australia, you’ve got tax obligations — and probably some juicy deductions too.

The good news? Gotax makes it crazy simple.
No tax jargon. No boring appointments. Just you, your income, your deductions — and your refund.

Ready to claim back what’s yours?
Start your tax return today: https://www.gotax.com.au/my-occupation/MTM/work-tax