Tax — ATO Residency, Medicare Levy, and HECS-HELP
Australian tax administration runs through a single federal agency, the Australian Taxation Office (ATO). Two big differences from Korea: the financial year runs 1 July to 30 June (Korea uses the calendar year), and everyone files an individual tax return through their myGov + ATO account between July and October each year.
Tax residency
For tax purposes, "resident for tax purposes" is decided by the ATO independently of your visa. You're typically a resident if any of the following applies:
- Resides test: your settled life and ties are in Australia.
- 183-day test: you're physically in Australia for 183+ days in the financial year and your usual abode is here.
- Domicile test: your domicile is Australia and your permanent place of abode is here.
Residents are taxed on worldwide income, but the Korea–Australia tax treaty generally prevents double taxation. Non-residents are taxed only on Australian-sourced income — but there's no tax-free threshold for them, so tax starts from the first dollar.
Tax rates (2025–26 financial year, AUD, guide)
- AUD 0–18,200: 0%
- AUD 18,201–45,000: 16%
- AUD 45,001–135,000: 30%
- AUD 135,001–190,000: 37%
- AUD 190,001+: 45%
(These reflect the post-July 2024 "Stage 3" cuts; check the ATO each year for exact figures.)
Medicare Levy & Surcharge
- Medicare Levy: flat 2% of taxable income, with reductions and exemptions for low income — this is the closest thing to a Korean health insurance premium.
- Medicare Levy Surcharge (MLS): if your income exceeds the threshold (around AUD 93,000 for singles in 2026) and you have no PHI hospital cover, an extra 1.0–1.5% applies — designed to push high earners into PHI.
HECS-HELP — university student loans
Australian university students typically defer tuition through HECS-HELP and repay automatically once income passes a threshold.
- Repayment threshold: around AUD 54,000 for 2025–26.
- Repayment rate: 1%–10% of income, withheld through PAYG by your employer.
- Indexation, not interest: the debt is indexed annually to the lower of CPI or wage growth — effectively interest-free in real terms.
- New permanent residents generally can't take out HECS-HELP (citizens-only for new use), but any debt taken on as a citizen carries over. Living overseas above the threshold still triggers reporting and repayment.
Practical points
- Your Tax File Number (TFN) is the first number to apply for after arrival; without it, employers withhold at the 47% emergency rate.
- Receipts, donations, and working-from-home costs can be claimed on either an ATO standard rate (e.g. fixed cents per home-office hour) or actual costs — pick whichever gives the better outcome.
- You file each July–October directly through myTax in myGov, or with a registered tax agent.