Australian Tax Return Guide for Indian Migrants (2024–25)

Every year, tens of thousands of Indian migrants in Australia need to lodge a tax return — yet many overpay tax by missing deductions, or underpay by misunderstanding their residency status. This guide covers everything you need to know for the 2024–25 financial year.

The Australian Financial Year

Australia's financial year runs 1 July to 30 June. Your 2024–25 tax return covers income earned from 1 July 2024 to 30 June 2025.

Lodgement deadline: 31 October 2025 (if you lodge yourself via myTax). If you use a registered tax agent, they have an extended deadline.

Are You a Tax Resident of Australia?

Your tax residency status determines your tax rates and what income you must declare. This is different from your visa status — you can be a PR holder who is not an Australian tax resident, or a temporary visa holder who is a tax resident.

For most Indian migrants living and working in Australia, you will be an Australian tax resident. Key indicators:

• You live in Australia and intend to stay (even temporarily)
• You have Australian employment
• You have a home in Australia

Why it matters: Australian tax residents pay tax only on income above $18,200 (the tax-free threshold) with progressive rates. Non-residents pay tax on every dollar earned in Australia at a flat 30% for the first $135,000 (no tax-free threshold).

If you are unsure about your residency status, use the ATO's residency tool at ato.gov.au or consult an accountant.

2024–25 Tax Rates for Australian Residents (Stage 3)

Taxable income	Tax rate
$0 – $18,200	Nil
$18,201 – $45,000	16%
$45,001 – $135,000	30%
$135,001 – $190,000	37%
$190,001 and over	45%

Plus 2% Medicare Levy on most income (exemptions apply if your income is below the Medicare Levy threshold).

Calculate your take-home pay: → Salary & Tax Calculator

What Income Do You Need to Declare?

Yes — declare these:

• Salary and wages from Australian employment
• Any rental income from Australian or overseas properties
• Interest from Australian bank accounts
• Dividends from Australian shares
• Capital gains from selling Australian assets
• Foreign income (if you are an Australian tax resident)

Commonly missed by Indian migrants:

• Interest earned on NRE/NRO accounts in India — tax treatment depends on your residency status and India-Australia tax treaty provisions. Get professional advice.
• Overseas rental income — if you are an Australian tax resident, you must declare this.
• Employer-provided benefits (car, phone, laptop) — may be subject to Fringe Benefits Tax, though this is the employer's obligation not yours.

Common Deductions for Indian Professionals

Deductions reduce your taxable income dollar-for-dollar.

Work-related deductions (most Indians can claim):

Deduction	What qualifies
Home office	If you worked from home, 67 cents per hour (fixed rate method) or actual costs
Work-related phone	Percentage of phone bill used for work
Work-related internet	Percentage of internet costs used for work
Professional membership fees	ACS, Engineers Australia, CPA, CA ANZ membership fees
Work uniforms	If you have a specific uniform or protective clothing
Self-education	Courses directly related to your current job
Tools and equipment	Under $300: immediate deduction; over $300: depreciated

You cannot claim:

• Commuting costs (home to office and back)
• Meals (unless travelling overnight for work)
• Gym fees (unless your specific occupation requires it)
• Clothing for a general professional look (standard business attire is not deductible)

Other deductions:

• Donations to registered Australian charities (DGR status) — fully deductible
• Tax agent fees from your previous year's return
• Income protection insurance premiums (if paid personally, not through super)

Superannuation and Your Tax Return

Your employer's super contributions (11.5% of your ordinary time earnings for 2024–25) go into your super fund. This is not included in your taxable income — your employer pays tax on it separately at 15%.

Voluntary contributions: If you make extra personal contributions from your after-tax salary (non-concessional), they are not deductible. If you salary-sacrifice into super, those are concessional contributions and reduce your taxable income.

Understand your super: → Super Calculator

The Low Income Tax Offset (LITO)

If you earn under $66,667, you receive a Low Income Tax Offset that reduces your tax payable:

• $700 offset if you earn $37,500 or less
• Reduces by 5 cents per dollar for income $37,501 – $45,000
• Reduces by 1.5 cents per dollar for income $45,001 – $66,667
• Nil for income above $66,667

This is automatically applied when you lodge — you do not need to claim it.

How to Lodge Your Tax Return

Option 1: myTax (ATO online portal) — free

1. Log in to myGov (my.gov.au) and link to the ATO
2. Go to Tax → Lodge return → Start
3. Most fields are pre-filled from your employer's payment summary and bank data
4. Review pre-filled information and add any missing deductions
5. Check your tax estimate
6. Lodge

Your refund (if any) is paid directly to your Australian bank account, typically within 2 weeks.

Option 2: Registered tax agent — recommended for complex situations

Use a tax agent if you have:

• Rental property
• Capital gains from shares or property sale
• Overseas income or accounts
• Complex deductions
• A business income

Cost: $150–$400 for a straightforward return through an accountant.

Find Indian-Australian accountants and tax agents near you: → Browse Professional Services Directory

What Indian Migrants Often Get Wrong

Forgetting to claim the tax-free threshold: When you start your first Australian job, you submit a Tax File Number declaration. Make sure you select "Yes" to claim the tax-free threshold — otherwise your employer withholds extra tax.

Not registering for a Tax File Number (TFN): Without a TFN, your employer withholds tax at the highest rate (47%). Apply for a TFN immediately when you arrive.

Thinking super is part of your salary: Your employer's super guarantee (11.5%) is paid on top of your salary, not out of it. Confirm this with your employer.

Not declaring overseas income: If you are an Australian tax resident with income from India (salary, rental, interest), you are legally required to declare it in your Australian return. The India-Australia Double Tax Agreement (DTA) prevents double taxation — credits apply for tax paid in India.

Frequently Asked Questions

Do I need to lodge a tax return if I arrived mid-year?

Yes — you lodge a return for the portion of the year you were earning income in Australia. Your payment summary from your employer will cover only the period you worked.

Can I claim money sent to family in India?

No — remittances to family are not deductible.

I have an NRE account in India. Is the interest taxable in Australia?

This depends on your tax residency status and the India-Australia tax treaty. Get advice from an accountant familiar with Indian overseas income before lodging.

What is the tax on my bonus?

Bonuses are taxed as ordinary income at your marginal rate. Your employer should withhold the right amount of PAYG tax. If they withhold too much or too little, it is corrected when you lodge your return.

I worked in Australia for only 3 months on a working holiday visa — do I need to lodge?

Yes — working holiday makers have their own tax rates. The first $45,000 is taxed at 15%. Lodge a return to claim any refund.

Verify current rates and thresholds at ato.gov.au. Tax advice in this guide is general — consult a registered tax agent for your specific situation.