Top Mistakes Foreign Workers Make With Their Aussie Tax Return

If you’re a foreign worker in Australia—whether on a working holiday visa, student visa, or temporary skilled visa—you’re not alone in scratching your head when tax time hits. But don’t worry, we’re about to unpack the most common blunders so you can dodge them like a dodgy dropbear.

Mistake #1: Thinking You’re a Tax Resident When You’re Not

Just because you’ve adopted Vegemite and say “arvo” doesn’t mean the ATO considers you a resident for tax. Most Working Holiday Makers (WHMs) and short-term visa holders are non-residents, meaning:

• No tax-free threshold

• No resident tax rates

• You pay 15% on the first $45,000, then more as your income rises

Residency status depends on how long you’re here, where you live, and your work arrangements. Not sure? GoTax can help.

Mistake #2: Claiming the Tax-Free Threshold (When You Can’t)

WHMs can’t claim the $18,200 tax-free threshold. If you ticked that box on your employment form, expect to pay it back. Ouch. Not fun. But fixable when you lodge a correct return.

Mistake #3: Leaving Out Income (Yes, Even the Cash Stuff)

All income earned in Australia must be declared, even if it was:

• Paid in cash

• From a second or third job

• From employers who “forgot” to pay super

The ATO is a data-matching ninja. They know things. Always better to declare everything and let GoTax work its refund magic.

Mistake #4: Over-Claiming Tax Deductions

Claiming deductions you’re not entitled to is like giving yourself a refund the ATO will want back. Legit claims only!

You can claim:

• Work-related travel (between job sites, not to and from home)

• Tools, equipment, uniforms

• Work-use portion of phone/internet

• Union or industry membership fees

You can’t claim:

• Rent or food

• Travel to your regular workplace

• Everyday clothes (nope, not even your steel-cap boots if they’re not required)

Mistake #5: Not Keeping Receipts

No receipt? No deduction. It’s that simple. Keep your records for at least five years. Or better yet, use GoTax’s Deduction Grabber to snap, store, and track them all as you go.

Mistake #6: Missing Out on Super

If you’ve earned over $450/month, your employer should’ve paid super. When you leave Australia, you can claim it back. That’s called a Departing Australia Superannuation Payment (DASP). Don’t leave your money behind!

Yes, the ATO keeps 65% of it in tax, but 35% of something is better than 100% of nothing.

Mistake #7: Not Lodging a Return At All

Some foreign workers think if they’ve left the country, the tax man can’t find them. Nope. If you earned money in Australia, you must lodge a tax return. Even if you’ve moved on.

You can do it from overseas, and GoTax makes that a breeze.

Mistake #8: Not Updating Contact Info

If you’ve left Oz but haven’t updated your postal or bank details, guess what? Your refund might be stuck in limbo. Update everything with the ATO—or better yet, use GoTax, and we’ll sort it for you.

Signup to GoTax and not only get your Tax return done, you can also ask as many questions as you like and get informed answers. You have access to the equivalent of a Tax Einstein — that is our very own D.e.r.e.k as well as the best credentialed Tax Accountants around.

Read more Crazy Tax Questions at: https://www.gotax.com.au/crazy-tax-answers

Disclaimer: Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.