3 things I wish I knew when I was an International student of Australia

When I was a student, I was occupied by Studies and part time job. I was mostly surrounded by the same group of students (all were new to Australia) and no idea on how to manage my finances. Most of you know, when you earn money in Australia, you have to pay tax and can claim some refund based on your expenses.

I don’t find some Accountants friendly and useful. I was not given proper advice on do’s and don’ts of claiming the tax back when I visited an Accountant. Now I feel sorry for choosing a wrong Accountant. From then, I am very particular while choosing an Accountant.

With this article, at least you know what to ask when you see an Accountant for your tax returns. If I knew the below things earlier, I would have had good balance in my account:

Managing super: If you are working for an Australian employer through a payroll system i.e. paying as per the Fair work legislation, regulations and rules. Some employers pay cash to their workers which is not legal in Australia but that is not the topic today.

So every employer seeks some personal details such as Bank Details and Superannuation Account details before you start your job.  Superannuation is paid on top of your salary; currently most of the employers are paying 9.25%.

When you are a student, there are more chances of moving jobs frequently, hence my strong advise is once you open your superannuation account carry that account with you for all your jobs.

If you already have super in various Super Funds, combine them using your preferred super fund. If you do not have idea where Super is, try to download a form for lost Super and submit to the address given.

I had accounts in various Super accounts, eventually the balance disappeared in the form of administration charges. For example, if you have one account, all your Super deposits into one account and have only one administration cost.

Medicare Levy: Australian Residents pay 2% of the taxable income as Medicare Levy for using the medicare facilities in Australia. Being a student, you may not fall under this category and can apply for Medicare Levy Exemption Certificate. When you see an Accountant next time ensure that you ask her/him about this topic. You can even do yourself by talking to the ATO customer care, they would be able to advise (long waiting time over the phone) you. This also applies to migrants who visit Australia on Sponsored Work Visa.

Deductible tax expenses: This is another area where you can seek more advice from the Accountant. For example if you are studying Accounting Degree and working as an Accountant. You are eligible for claiming the study expenses as the deductions. I have paid more tax than eligible because of lack of knowledge in these matters. This motivated me to attend Tax Courses to get an understanding of tax and I file my own tax returns every year.

So friends do not make the mistakes I did, be smart and maximise every dollar earned.

Please share your experiences if you have missed any like this in the comments below.