International Student Tax Return No Income: Do You Still Need to Lodge?
Updated: 3 days ago
Quick answer: an international student tax return no income situation usually does not need to be lodged with the ATO at all, since a full return is only required once you earn assessable income or have tax withheld. What you may still need is a quick non-lodgment advice, especially if you already hold a TFN or have lodged a return in a previous year, so the ATO knows not to expect one this time.
Every tax season, thousands of international students in Australia earn little or nothing and are left wondering whether the ATO still expects paperwork from them. This guide walks through the rules in plain English, using current ATO guidance, so you know exactly what to do (and what you can safely skip).
When Does an International Student Tax Return No Income Case Still Need Lodging?
In most cases, no return is needed at all. The Australian Taxation Office only requires a tax return from people whose income was above the tax-free threshold, or who had tax withheld, received certain government payments, held an active ABN, or have a study loan such as HECS-HELP. If none of those apply to you, an international student tax return no income scenario generally does not require a return at all, though a non-lodgment advice may still be worthwhile, which is covered further down.
What Counts as No Income for Tax Purposes?
No income means no Australian-sourced wages, bank interest, or assessable scholarship payments during the income year. It runs from 1 July to 30 June. It does not matter whether you worked casually overseas or lived on savings sent from home, since foreign-sourced income is generally not assessable for most temporary residents. If a bank paid you even a small amount of interest, or an employer withheld any tax at all, that changes your position and you should check your obligations again rather than assume no return is needed.
Should You Submit a Non-Lodgment Advice Instead?
Yes, if you have ever held a TFN or lodged a return before. A non-lodgment advice tells the ATO you are not required to lodge for that income year, which stops follow-up letters and keeps your ATO account tidy. You can lodge one through your myGov account linked to the ATO (select ATO, then Tax, then Lodgments, then Non-lodgment advice), and the ATO's non-lodgment advice page explains the exact steps, including a paper form option if you prefer not to use myGov.
Are You an Australian Resident for Tax Purposes as a Student?
Many international students studying a course of six months or longer are treated as Australian residents for tax purposes. Only Australian residents for tax purposes get the tax-free threshold, so this status matters once you do start earning. The ATO looks at several tests, including the resides test, the domicile test and the 183-day test, which checks whether you have been in Australia for more than half the income year. If your residency status changes partway through the year, residents are entitled to a pro-rata tax-free threshold for the months they were here rather than the full $18,200.
Australian Resident Tax Rates for the 2025-26 Income Year
Here is the tax-free threshold and resident tax rate table for the income year most students are asking about this tax time (1 July 2025 to 30 June 2026), sourced from the ATO.
Taxable income (2025-26) | Taxable on this Income |
$0 - $18,200 | Nil |
$18,201 - $45,000 | 16c for each $1 over $18,200 |
$45,001 - $135,000 | $4,288 plus 30c for each $1 over $45,000 |
$135,001 - $190,000 | $31,288 plus 37c for each $1 over $135,000 |
$190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Rates exclude the Medicare levy. Source: Australian Taxation Office resident tax rate schedule.
What if You Have a TFN But Earned Nothing?
A TFN alone does not create a lodgment obligation, but it does mean the ATO expects to hear from you each year. If you quoted your TFN to a bank or an employer at any point and no tax was withheld because you earned nothing, a quick non-lodgment advice closes the loop cleanly. Skipping this step is not illegal, but it can trigger reminder letters, or later, an assumption that a return is overdue.
What Happens if You Do Nothing at All?
Generally nothing, if you genuinely had no income and no lodgment triggers. The ATO only chases people who meet one of its lodgment conditions. The safer habit, though, is to check your situation every year using the ATO's own tools rather than assuming, since rules around scholarships, government payments and casual work can change your position quickly once you start earning. Note that if you do lodge your own return, the standard due date is 31 October each year for the previous income year.
Frequently Asked Questions
Do international students need to lodge a tax return if they have no income?
No. If you earned no assessable income and had no tax withheld, you generally do not need to lodge a tax return, though you may still need to submit a non-lodgment advice if you hold a TFN.
What is a non-lodgment advice and do I need one as a student?
A non-lodgment advice tells the ATO you do not need to lodge a tax return for a specific income year. You should submit one if you have a TFN or have lodged before, even with zero income.
Is scholarship money counted as income for international students?
Some scholarship and stipend payments are assessable income and others are exempt, depending on the terms of the scholarship, so check your specific scholarship conditions or ask a registered tax agent before assuming it is tax-free.
Are international students Australian residents for tax purposes?
Many international students who study a course of six months or longer and live in one place in Australia for most of the year are treated as Australian residents for tax purposes, which affects the tax-free threshold and lodgment rules.
What happens if I don't lodge a tax return or non-lodgment advice as a student?
If you genuinely had no income and no lodgment triggers, there is usually no penalty, but leaving a TFN with no lodgment history on file can lead to ATO reminder letters, so a quick non-lodgment advice is the tidier option.
Still unsure which category you fall into? Our team at Tax Falcon checks student and international student situations every day, and can confirm in minutes whether you need to lodge, submit a non-lodgment advice, or do nothing at all this year.
