Tax Checklist for Migrants

By Mark Chapman

For many new migrants, January marks a fresh start in Australia – new jobs, new systems and a new tax year to prepare for. Australia’s tax system is straightforward once you understand the basics, but it can feel unfamiliar if you’re used to a different approach overseas. With the 2025–26 financial year already underway, now is the ideal time for recent arrivals to get organised and avoid stress when tax time arrives. Here’s a practical new-year checklist to help migrants understand their key tax obligations, build solid financial habits and prepare for a smooth first Australian tax return.

Understand your Australian tax residency status

One of the most important concepts for new migrants is tax residency, which is different from visa or immigration status. In Australia, tax residents are generally taxed on their worldwide income, while non-residents are taxed only on Australian-sourced income.
Many migrants become Australian tax residents shortly after arriving, particularly if they intend to live and work here on an ongoing basis. This can have implications for overseas income, bank interest, rental properties and investments held before arrival. January is a good time to review:

• When you first arrived in Australia
• Whether you have set up a permanent home
• Whether you intend to remain long-term

If you’re unsure, getting advice early can prevent reporting mistakes later.

Make sure you have a Tax File Number (TFN)

A Tax File Number (TFN) is essential for working and lodging a tax return in Australia. If you haven’t already applied, this should be at the top of your checklist. Without a TFN:

• Employers must withhold tax at the highest rate
• You can’t easily lodge a tax return
• You may miss out on refunds or government benefits

Once issued, your TFN stays with you for life, even if you leave Australia and return later.

Check your superannuation is set up correctly

Superannuation (Australia’s retirement savings system) is another area that surprises many new migrants. Employers must generally pay 12% superannuation (for FY26) on top of your salary into a super fund. In January, take time to:

• Confirm your employer is paying super correctly
• Check that all contributions are going into one chosen fund
• Review your investment option and insurance settings

Consolidating multiple super accounts early can save fees and improve long-term outcomes.

Keep records from day one

Record-keeping is one of the simplest ways to reduce tax stress. Even if your tax return won’t be lodged until after 30 June, good habits now make a big difference. Items worth keeping include:

• Payslips and employment contracts
• Bank statements showing interest earned
• Work-related expense receipts
• Private health insurance statements
• Records of overseas income received after becoming a tax resident

Digital copies are acceptable, so storing everything in a secure folder or app can make life much easier.

Understand what you can (and can’t) claim

Many migrants assume they can claim a wide range of personal expenses, but Australian tax deductions are tightly defined. In general, expenses must be directly related to earning income and not reimbursed by your employer.Common examples include:

• Work-related travel or uniforms
• Professional registration or licence fees
• Self-education expenses related to your current job
• Home office expenses (if working from home)

Everyday living costs, such as rent, groceries or commuting to work, are usually not deductible.

Be mindful of overseas assets and income

If you become an Australian tax resident, overseas income earned after that date may need to be declared, even if tax was paid overseas. This can include:

• Interest from foreign bank accounts
• Rental income from overseas properties
• Dividends or investment income

Australia has tax treaties with many countries to prevent double taxation, but disclosure is still required. January is a good time to list any overseas assets so there are no surprises at tax time.

Check your Medicare and private health status

Most migrants who are permanent residents or eligible visa holders will need to enrol in Medicare. Your Medicare status affects your tax return, including whether the Medicare levy applies. If you take out private health insurance, keep your annual statement, as this information must be included in your tax return and can impact tax offsets or surcharges.

Plan ahead for FY26 now

Rather than waiting until June, January is an ideal time to think proactively about tax planning. Small steps can make a meaningful difference, such as:

• Reviewing your PAYG withholding to avoid under- or over-payment
• Making voluntary super contributions if cash flow allows
• Setting aside money for tax if you have side income or freelance work

For migrants establishing their financial footing, these early habits can build confidence and long-term stability.

A smooth first tax return starts now

Your first Australian tax return doesn’t have to be daunting. By understanding your residency status, keeping good records and addressing key obligations early in the year, you put yourself in a strong position well before lodgement season begins.
For many new migrants, January isn’t just the start of a new year – it’s the perfect opportunity to lay the foundations for a smooth and stress-free tax journey in Australia.

About the author:  Mark Chapman is the Director of Tax Communications at H&R Block Australia.