Most Australian students who worked part-time during the financial year will need to lodge a tax return. The good news is that students earning under $18,200 for the year may owe no income tax at all — and if tax was withheld from pay, they can claim a full refund by lodging.
Do Students Have to Lodge a Tax Return?
You are generally required to lodge if:
- Your taxable income was above the tax-free threshold ($18,200) and you had tax withheld
- You had tax withheld from any pay and want to claim it back
- You received taxable Centrelink payments (Youth Allowance, Austudy) and your total income exceeded $18,200
- You have a HECS-HELP debt and your income was above the repayment threshold ($54,435 for FY2025–26)
- You were a working holiday maker (separate rules apply — see tax return for working holiday makers)
Even if your income is below the threshold, lodging may still benefit you if tax was withheld.
The Tax-Free Threshold
Australian residents can earn up to $18,200 in a financial year without paying income tax. If your total income is below this amount, your tax liability is $0.
If your employer withheld tax from your wages (which happens when you did not submit a TFN Declaration claiming the tax-free threshold), you can get all of it back by lodging a return.
Important: Claim the tax-free threshold with only one employer. If you have two jobs and claim it with both, both employers under-withhold, and you will likely face a tax bill at the end of the year.
HECS-HELP and Your Tax Return
If you have a HECS-HELP debt:
- Repayments are made via the tax system once your income reaches the repayment threshold
- For FY2025–26, the minimum threshold is approximately $54,435
- Your employer should be withholding extra PAYG tax to cover repayments — but only if you notify them you have a HECS debt on your TFN Declaration
If you forgot to tick the HECS box on your TFN Declaration, your employer did not withhold enough, and you may face a HECS repayment bill when you lodge your return.
Your HECS balance can be checked in myGov under ATO online services.
Youth Allowance and Austudy
Youth Allowance and Austudy from Centrelink are taxable income. They are pre-filled in myTax from Services Australia data. If your combined income (Youth Allowance + part-time wages) is below $18,200, you will not owe income tax — but you should still check whether tax was withheld.
Common Student Deductions
| Deduction | Conditions |
|---|---|
| Self-education expenses | The course must be directly related to your current employment — not a new career |
| Work uniform or protective clothing | Required by your employer, not general clothing |
| Work-related phone | Proportion used for work purposes |
| Union fees | Must be for a union related to your current employment |
| Income protection insurance | Held outside super |
Importantly: Self-education expenses for a course that improves your skills in your current job (e.g., nursing student working as an AIN, or law student clerking at a firm) are potentially deductible. A course aimed at getting a new job or qualification for a new career is generally not deductible.
Lodging as a Student — Step by Step
- Create or log in to your myGov account
- Link the ATO if you have not already
- Wait until after 14 August for all income statements to be finalised
- Go to Tax → Returns → Lodge return
- Check that Centrelink income is pre-filled
- Add any deductions you are claiming
- Enter your bank account details for the refund
- Review and submit
Frequently Asked Questions
Do I need to lodge if I only earned $5,000 from a part-time job? You are not legally required to lodge if your income is below $18,200 and you are a resident with no other tax obligations — but if tax was withheld from your pay, lodging is the only way to get it back.
Does my HECS scholarship count as income? Commonwealth Supported Place (CSP) funding is not treated as assessable income. However, Austudy, Youth Allowance, and other government payments are taxable. Check your specific payments in myGov.
I have never lodged before — how do I prove my identity to link the ATO? First-time lodgers without prior ATO records may need to call the ATO (13 28 61) to complete identity verification before they can link myGov to the ATO.
Will my tax refund be applied to my HECS debt? Compulsory HECS-HELP repayments are separate from your tax refund. If you are owed a refund after income tax is calculated, the ATO first offsets any HECS compulsory repayment. Any remaining refund is paid to your bank account.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.