Temporary Graduate Visa (Subclass 485) Tax Calculator

Complete Taxation Guide for Subclass 485 Temporary Graduate Visa Holders

The Subclass 485 visa allows international graduates of Australian institutions to live, work, and gain professional experience in Australia. With full-time work rights, understanding your tax obligations and tax exemptions can increase your annual net pay by thousands of dollars.

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1. Stage 3 Tax Cuts for 485 Visa Holders

As an Australian resident for tax purposes, you benefit from the Stage 3 tax cuts:

$0 to $18,200: 0% (Tax-Free Threshold)

$18,201 to $45,000: 16% on excess over $18,200

$45,001 to $135,000: $4,288 + 30% on excess over $45,000

$135,001 to $190,000: $31,288 + 37% on excess over $135,000

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2. Claiming the Medicare Entitlement Statement (MES)

Temporary Graduate visa holders must hold compliant OVHC (Condition 8501). As a result, you are not covered by Australian Medicare. You are entitled to a full Category 1 Medicare Levy Exemption:

On an $85,000 AUD graduate starting salary, claiming the MES keeps an additional $1,700 AUD in your pocket every year.

Ensure you apply for your MES certificate online through myGov/Services Australia before lodging your individual tax return in July/August.

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3. Transitioning to Permanent Residency (Subclass 189/190/186)

When you apply for a permanent residency visa and receive a Bridging Visa with work rights, you become entitled to interim Medicare. From the date of your PR application acknowledgment, you will be liable for the Medicare levy and should notify your payroll department.