In Korea, around January–February your employer handles the year-end tax settlement for you. So many people newly arrived in Australia think:
“I only earned a salary — how complicated can it be?”
But Australia is different. Here, a Tax Return isn’t the government handing money back — it’s you settling your own tax. Approach it with Korean assumptions and you lose money more easily than you’d expect.
Here are the cases I saw most often in my accounting years.
The bottom line
- Filing early doesn’t make your refund come faster
- The moment you don’t keep receipts, the deduction disappears too
- Interest on your Korean accounts can be reportable
- This year’s biggest errors are work-from-home claims and AI-suggested tax tips
- Even the $1,000 standard deduction coming next year is widely misunderstood
Mistake ① “I should file the moment 1 July hits, to get my refund faster”
This is the most common myth in the Korean community. Often the opposite is true.
In early July, your bank interest, health insurance, share dividends, Centrelink, and PAYG details aren’t all uploaded to the ATO yet. File too early and you may have to lodge an amendment later.
The ATO advises every year to file once your Income Statement is ‘Tax Ready.’ In my experience, late July is the sweet spot.
The ATO’s own warning ahead of the 2026 lodging season says the same thing: “Don’t lodge yet.” Pre-fill data isn’t finalised until late July. The ATO says people who lodged before pre-fill were more than twice as likely to have their returns amended, and last season over 140,000 individual returns were corrected — on employment income, interest, dividends, health insurance and more. The few days you save by rushing often come back as weeks of delay and an amendment.
Mistake ② “You said there’s $1,000?”
The most-asked question this year. In short — not yet.
The government’s $1,000 instant deduction is set to apply from the 2026-27 income year. That means from next year’s (2027) tax return.
And many think it means “they’ll give me back $1,000.” They won’t. It’s a deduction. If someone on a $90,000 salary gets a $1,000 deduction, the actual tax saving is about $300. A deduction and a refund are entirely different things.
Mistake ③ “Australia won’t know about my Korean accounts”
It might have worked once. It mostly doesn’t now.
Australia and Korea exchange financial-account information under the CRS (Common Reporting Standard). Once you’re an Australian tax resident, your Korean interest, dividends, and rental income can become reportable.
What matters isn’t whether you moved money from Korea to Australia — it’s the nature of that money. Remitting principal usually isn’t taxed, but the income that principal generated is another story. (→ When does Australian tax residency begin · The Korea–Australia tax treaty and double taxation)
Mistake ④ “I work from home, so I’ll just claim everything”
The line the ATO scrutinises most each year. Sending a few emails from home doesn’t make it a work-from-home (WFH) claim.
Currently you choose between the Fixed Rate method or the Actual Cost method. The fixed rate is currently 70 cents per hour (covering internet, electricity, and the like); the actual-cost method needs extra records. Both require records. Don’t believe the “claim all your electricity” lines you see from AI or random blog posts.
Mistake ⑤ “But the AI said I could”
Plenty of people now file based on ChatGPT or social media. The problem: AI doesn’t know your current job, work pattern, visa, or whether you run a business — so it only gives generalities.
The ATO has already warned several times about wrong deductions generated by AI. AI is fine for learning, but the final responsibility is the taxpayer’s.
Mistake ⑥ “I bought it under the business name, so it’s all deductible”
The mistake I see most among migrant business owners. The car is in the company name, so is the insurance, the lease, the fuel — but you use it for commuting and personal trips.
People assume “it’s a company car, so it’s all an expense.” It isn’t that simple. When an employee or director uses a company vehicle privately, FBT (Fringe Benefits Tax) can arise. Ignoring FBT and expensing the lot leads to plenty of problems later. (The EV FBT exemption has its own conditions → Novated lease and EV tax-saving)
Mistake ⑦ “I’ll look for receipts at tax time”
No. You file in July, but tax-saving is a year-round activity.
Travel, training, association fees, equipment, a work phone — if you don’t record these as they happen, most are forgotten by next July. From long experience, the people who save the most tax aren’t those who know the most tax law — they’re the ones who keep the best records.
Pre-lodgement checklist
- Is your Income Statement ‘Tax Ready’?
- Have you checked your bank interest and dividends?
- Have you reviewed any Korean financial income?
- Have you gathered your work-related receipts?
- Is your Private Health Insurance information reflected?
- Have you noted what changed from last year (job change, investments, side income)?
In closing
An Australian tax return isn’t a game of how big a refund you get. What matters more is not paying tax you don’t need to, and leaving records you can explain when the ATO later asks.
If you hold Korean assets especially, your tax return isn’t about viewing Korea and Australia separately — it needs a view that sees both countries together. That’s exactly why general Australian tax information and tax information for migrants are different things.
Read next
- Australian tax return 2026 — 8 changes you can’t miss — what actually changed this year
- The Korea–Australia money map — the starting point · When does Australian tax start?
- When does Australian tax residency begin · Will money brought from Korea be taxed in Australia? (treaty & double tax)
- Do you report a Korean apartment sale in Australia too · What happens to your super when you leave · When does your tax end when you move back to Korea
Disclaimer: This article is general information, not individual tax advice. Rates, the fixed-rate deduction, and start dates follow ATO rules and may change. Outcomes vary by your circumstances, so consult a Registered Tax Agent for your specific lodgement.