Straight answers to the questions we hear most about Australian income tax.
Do I have to pay the Medicare Levy?+
Most residents pay a 2% Medicare Levy on top of income tax, with a phase-in for low incomes and some exemptions. Higher earners without private hospital cover may also pay the separate Medicare Levy Surcharge. See our
Medicare Levy Calculator.
Is superannuation taxed the same as my salary?+
No. Your employer's compulsory 12% Super Guarantee contribution is taxed concessionally within your super fund, generally at 15%, not at your marginal income tax rate.
Do I need a Tax File Number?+
Yes, to work and lodge a tax return in Australia. Without one, your employer must withhold tax at the highest marginal rate, and you can't access most government benefits linked to your tax record.
Do working holiday makers pay the same tax rates as residents?+
No. Working holiday makers on a 417 or 462 visa have their own specific tax rate schedule, generally taxed from the first dollar earned rather than getting the resident tax-free threshold.
What happens to my HECS-HELP debt if I change jobs?+
Your HELP debt stays with you regardless of employer. Each employer withholds an estimated repayment based on your income and declared HELP debt, and the ATO reconciles the actual amount owed at tax time. See our
HECS-HELP Calculator.
Can I claim working-from-home expenses?+
Yes, using either the fixed rate method (67c/hour, covering electricity, phone, internet) or the actual cost method with detailed records — whichever gives a better result for your situation. See our
Tax Deductions Guide.
Do I need to lodge a tax return if I earned below the tax-free threshold?+
You may still need to lodge, or at minimum submit a non-lodgment advice, especially if any tax was withheld from your pay that you'd like refunded. Check with the ATO or a tax agent for your specific situation.