In Korea your employer runs the year-end tax settlement for you. In Australia, you lodge your own tax return every year.
That difference is unfamiliar at first. But the trickier part is something else: what was true last year isn’t necessarily true this year.
Australian tax changes a little every year — brackets move, the super rate moves, and the areas the ATO looks at shift. The 2025-26 financial year in particular carries changes that land directly on Korean-Australians, former students who’ve settled, working holiday makers, and anyone with side income.
We’ve already covered the 7 things Koreans most often get wrong at tax time. If that piece is about mistakes that repeat every year, this one is about what actually changed this year — and what to watch especially closely.
The short version
- HELP/HECS student debt saw big changes — a 20% reduction and a reworked repayment method.
- Platform side income from Uber, DiDi, Airbnb, Airtasker is more visible through ATO data matching.
- ATO interest charges (GIC/SIC) incurred from 1 July 2025 are hard to treat as deductible anymore.
- The compulsory super rate rose to 12%, so the personal-contribution deduction strategy is worth another look.
- Working holiday tax, the Medicare levy surcharge, and foreign income are “every-year” items — and the ones Korean-Australians miss most.
The core of this year’s return isn’t getting your refund faster. It’s checking that your return matches what the ATO already knows.
① HELP/HECS student debt — the repayment method matters more than the discount
One of the biggest changes this year is HELP — the student loan most people call HECS.
The government delivered a one-off 20% reduction to HELP debt and lifted the income threshold at which repayments start. It also moved away from applying a rate to your whole income once you cross the threshold, toward focusing on the income above the threshold.
Here’s the part Korean readers need to be careful about.
HELP doesn’t apply to all international students. It generally applies to Australian citizens, eligible New Zealand citizens, and some humanitarian visa holders. If you came straight from Korea as an international student, you usually don’t have HELP.
But if you settled and became a citizen, if a family member studied at an Australian university, or if you studied again yourself using HELP, it’s a different story. Before lodging, check your HELP balance and how repayments are being applied in your myGov and ATO accounts.
The Hanho Money checkpoint: if you have HELP, the question isn’t “how much was reduced” — it’s “how is my actual repayment calculated on this year’s income.”
② Uber, Airbnb and Airtasker income — the ATO already knows
People used to wave away side income as “too small to bother.” That’s now risky.
Under the Sharing Economy Reporting Regime (SERR), platform operators report members’ transaction data to the ATO. Ride-sourcing, delivery, short-term accommodation and task-marketplace platforms are all in scope.
For example:
| Platform / activity | What to review on your return |
|---|---|
| Uber / DiDi driving | Fare income, car costs, insurance, fuel, depreciation |
| Airbnb | Accommodation income, cleaning, repairs, interest, apportioned utilities |
| Airtasker | Task income, equipment and travel costs |
| Delivery platforms | Delivery income, car / bike / phone costs |
The point isn’t “do I have to report this” — you always did. What changed is that the ATO can now cross-check it more easily. If the platform figure and your return figure differ significantly, you may receive an adjustment request later.
③ ATO interest charges — being late just got more expensive
The ATO’s general interest charge (GIC) and shortfall interest charge (SIC) incurred from 1 July 2025 are hard to treat as tax-deductible anymore.
In plain terms: previously, interest the ATO charged for paying late could, in part, be deductible later. Now that burden stays with you far more directly.
This matters, financially and psychologically, for businesses and individuals alike — the cost of paying tax late has gone up. For Korean-Australians, whose affairs often mix Korean assets, Australian income, rent and foreign dividends and so tend to run late, “I’ll sort it out later” can now be a more expensive choice.
④ Super at 12% — start with your payslip
From 1 July 2025, the compulsory super rate (the Super Guarantee) rose to 12%.
If you’re employed, your employer must pay 12% into super on top of your wage. Working holiday makers and temporary visa holders accrue super too, depending on the employment terms.
Two points connect to your return. First, check your payslip shows super calculated correctly. Second, you can review a concessional contribution strategy — contributing extra yourself and claiming a deduction. The concessional contributions cap is currently $30,000 a year; your employer’s contributions plus your own must be managed within that cap. Note that high earners may face Division 293 tax, and the money is locked up — super is a tax tool, but not cash you can pull back out easily.
⑤ Working holiday tax — “I’m a resident, so I get the tax-free threshold” is wrong
Working holiday visas (417/462) have a different rate structure.
Australian tax residents get a tax-free threshold on the first slice of income; working holiday makers are generally taxed at 15% from the first dollar. In particular, remember the 15% rate up to $45,000.
That’s where misunderstandings creep in. “Working holiday makers never get a refund” is wrong, and “I’ve been here a while, so surely I get the tax-free threshold” is dangerous.
If your employer over-withheld, or you have work-related deductions, a refund can arise. Conversely, if you were taxed at the wrong rate or worked for several employers, you may owe more. A working holiday visa isn’t a “big refund” visa — it’s one where lodging is what finalises your tax.
⑥ Medicare levy surcharge — private cover is a tax question too
A commonly missed item is the Medicare Levy Surcharge (MLS).
If your income exceeds a certain level and you don’t hold appropriate hospital-level private health insurance, an extra charge can apply. For 2025-26, the thresholds to check start around $101,000 (singles) and $202,000 (families).
What matters isn’t only “do I have cover.” It’s:
- whether it’s hospital cover
- whether it covered the whole financial year (and if you joined mid-year, what about the earlier period)
- for a family, how a spouse and children are counted
Some higher-income Korean-Australians cancel cover “because the premium felt wasteful,” only to find the MLS was larger. Above a certain income, private cover is partly a health cost — and partly part of your tax calculation.
⑦ Rental income — a perennial ATO focus area
Rental income is something the ATO examines closely every year.
It comes up often for Korean-Australians: buying a home and renting part of it, renting out the Australian home on returning to Korea, or earning rent from Korean property. Common errors include:
| Item | Common mistake |
|---|---|
| Repairs | Not distinguishing repairs from capital improvements |
| Interest | Mixing personal-use and rental periods |
| Utilities | Not apportioning rental vs personal use |
| Short-stay | Omitting Airbnb income |
| Overseas rent | Leaving Korean rental income out of the Australian return |
If you’re an Australian tax resident, foreign income has to be considered too. Having already paid tax in Korea doesn’t automatically finish your Australian return — double tax is resolved through the treaty and the foreign income tax offset, not by the return simply disappearing. (→ Korea–Australia treaty and double taxation)
⑧ Don’t lodge too early — the ATO’s data arrives late
When the season opens, it’s tempting to lodge immediately to get the refund faster.
But the ATO issues the same warning every year: lodge too early and pre-fill data — employer income, bank interest, private health, dividends, government payments, platform income — may not all be in yet.
Lodge early and, when the data lands later, you may have to amend, or the ATO may catch the difference. This year especially — with platform income, foreign income, super and HELP all in the mix — “an accurate return” beats “a fast return.”
Before-you-lodge checklist (2026)
- If you have a HELP/HECS balance, is the reduction and the new repayment method reflected?
- Did you include all platform income — Uber, DiDi, Airbnb, Airtasker?
- (Working holiday) Did your employer withhold at working holiday maker rates?
- Is your private cover MLS-compliant hospital cover?
- Is the 12% super rate showing correctly on your payslip?
- If claiming a personal super deduction, did you complete the notice of intent?
- For rental income, did you separate repairs from capital costs?
- Did you review foreign income — Korean interest, dividends, rent, share gains?
- Are you lodging after pre-fill data has substantially arrived?
In closing
An Australian tax return isn’t only about “how much you get back.” It’s where your visa status, tax residency, Korean assets, Australian income, side income, super and private cover all meet on one form.
The changes Korean-Australians should watch this year are clear: the ATO holds more data, platform income is more visible, late payment costs more, and the super and HELP rules have changed.
The Hanho Money conclusion is simple: don’t lodge fast — lodge right. And if money has moved between Korea and Australia, don’t look at one country alone — look at both.
Read next
- Korea–Australia money map — where every article starts
- Australian tax return — the 7 things Koreans most often get wrong — the every-year mistakes
- When does Australian tax start for newcomers? · July 2026 — what changes in Australia
- When are you an Australian tax resident? · Korea–Australia treaty and double taxation
Disclaimer: This is general information, not personal tax advice. Rates, caps, repayment thresholds and what is deductible depend on your visa status, tax residency, income structure, family situation and assets. Confirm your actual return with a registered tax agent or accountant.