Student Visa (Subclass 500) Tax Calculator
International students enrolled in courses longer than 6 months in Australia are classified as Australian Residents for Tax Purposes. You enjoy the $18,200 tax-free threshold and are exempt from the 2% Medicare levy.
Contextual tax, banking, and overseas remittance offers
Gross Annual Salary (AUD)
Base salary before tax & superannuation
Visa Subclass & Nationality
Determines tax residency brackets and Medicare eligibility
100% Medicare Levy Exemption (MES): As a non-citizen from a non-RHCA country, you can obtain a Medicare Entitlement Statement (MES) from Services Australia and pay 0% Medicare Levy.
Additional Residency & Insurance Toggles
Applying for PR with work rights gives you interim Medicare access, removing the MES exemption.
Avoids 1.0% – 1.5% Medicare Levy Surcharge for taxable incomes above $101,000.
Take-Home Income
You save $840/yr ($70/mo) under Category 1 MES.
Paid in addition to gross salary
Total pkg: $47,040
Citizen vs. Visa Holder Comparison
$37,352
Includes 2% Medicare$38,192
0% Medicare (MES)Extra take-home pay due to 100% Medicare Levy Exemption
/ year
Compare Approved OSHC Health Cover
Maintain mandatory health insurance for Student Visa (500) while claiming 100% Medicare Levy Exemption.
- Instant Department of Home Affairs letter
- No waiting period on emergency dental
- 24/7 multilingual health advice line
- 100% compliant with visa condition 8501
- Direct billing at 1,000+ medical clinics
- Telehealth included at $0 co-pay
- Simple digital claims via nib app
- Unlimited emergency ambulance
- Customizable extras & dental
⚡ Instant digital visa certificate sent to your email in under 3 minutes.
Get Quote with Bupa AustraliaHow to Claim 100% Medicare Levy Exemption (MES)
Official step-by-step Services Australia checklist
Obtain a certified copy of your passport photo page, current Australian visa grant notice (or VEVO check), and proof of arrival.
Apply online using your Services Australia / Medicare online account through myGov, or complete Medicare Entitlement Statement (MS015).
Once approved (usually 4-6 weeks), enter your MES certificate number under ATO tax return question M2 (Medicare Levy Exemption: 365 days).
Contextual tax, banking, and overseas remittance offers
Worked Take-Home Pay Examples for Subclass 500 (International Student) Holders
Pre-calculated Stage 3 marginal tax withholdings and Medicare exemption net impact
| Gross Annual Salary | Income Tax (Stage 3) | Medicare Levy (2%) | MES Extra Net Cash | Net Take-Home Pay | Super (12%) |
|---|---|---|---|---|---|
| $25,000 AUD | $1,088 AUD | $0 AUD | $0 (PR / Citizen) | $23,912 AUD | $3,000 AUD |
| $38,000 AUD | $3,168 AUD | $760 AUD | +$760 AUD/yr | $34,832 AUD | $4,560 AUD |
| $48,000 AUD | $5,188 AUD | $960 AUD | +$960 AUD/yr | $42,812 AUD | $5,760 AUD |
Official ATO & Services Australia Rules for Subclass 500 (International Student)
How your visa subclass is treated under Australian tax legislation
Taxed at standard resident rates with the $18,200 tax-free threshold. Earnings up to $18,200 are 100% tax-free.
International students hold Overseas Student Health Cover (OSHC) and are not entitled to Medicare. You can apply for a Medicare Entitlement Statement (MES) to avoid having the 2% Medicare levy deducted on your tax return.
Tax Guide for Subclass 500 International Student Visa Holders in Australia
International students studying in Australia on a Subclass 500 visa often work part-time (up to 48 hours per fortnight during study terms and unlimited hours during breaks). Understanding your Australian tax entitlements ensures you maximize your earnings.
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1. Tax-Free Threshold ($18,200)
If your course duration is 6 months or longer, the ATO considers you an Australian Resident for Tax Purposes. When completing your Tax File Number (TFN) Declaration form with an employer:#
2. Overseas Student Health Cover (OSHC) & Medicare Exemption
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3. Superannuation for International Students
Tax & Medicare Questions for Subclass 500 (International Student)
Q:Do international students on Subclass 500 pay tax in Australia?
Yes, but only on income earned above the $18,200 tax-free threshold. Furthermore, you are exempt from the 2% Medicare levy when you submit an MES certificate with your tax return.
Q:Do students get Superannuation in Australia?
Yes, all employees including international students on visa 500 receive 12.0% Superannuation from their employers on top of their wages.