As an Education Consultant at PFEC Global, we understand that studying abroad can be a big financial decision for students and their families. Along with tuition fees, accommodation, and living expenses, it's important to consider the tax implications as well.
For Indian students studying in Australia, the tax implications depend on several factors such as the duration of stay, type of income earned, and the Double Taxation Avoidance Agreement (DTAA) between India and Australia.
According to the DTAA, students can claim relief from paying tax in both countries. If a student is in Australia for less than 183 days in a financial year, their income earned in Australia will not be taxable in Australia, and they will only be taxed in India. However, if the student is in Australia for more than 183 days, they may be liable to pay taxes in both countries.
Additionally, if the student is earning income in Australia through a part-time job or internship, they will need to file a tax return in Australia and declare their income. They can also claim a tax-free threshold of AUD 18,200 in Australia, which means they will only be taxed on income above this amount.
It's important for students to keep track of their income and seek professional advice to understand their tax obligations and claim all available benefits. At PFEC Global, we provide guidance and support to our students in understanding the tax implications and ensuring compliance with the regulations.