Settling in · Moving to Australia

Moving to Australia: When Does Tax Actually Start?

By Jai Kim · 27 June 2026 · 4 min read

When you move to Australia, everyone sees the same checklist — open a bank account, get a phone, apply for a TFN, find a home.

But thirty years of watching the Korean-Australian community taught me one thing. The biggest money leaks early on aren’t on the checklist. Tax. And super. A small choice in the first year or two can become a difference of tens of thousands of dollars later.

The bottom line

Without a TFN, your wages can be withheld at a high rate
Become an Australian tax resident and your Korean income can become reportable here too
Super isn’t a government pension — it’s an investment account in your own name
A visa is not the same as tax residency
Your first-year tax depends less on how much you earn than on when you become a resident

Mistake ① Thinking the TFN can wait

A TFN (Tax File Number) is your taxpayer number for tax and super. It is not an all-purpose ID like a Korean resident registration number — Australia deliberately has no such number, and a TFN is actually a sensitive number you shouldn’t hand out freely (only to your employer, bank, super fund, and the ATO). It’s free to apply for, and best obtained around when you start work.

Without a TFN:

your wages can be withheld at a high (top) rate
your bank interest can be withheld at a high rate
your tax refund can get complicated

In Korea your resident number links automatically; in Australia you apply for your TFN yourself.

Mistake ② Treating a visa as tax residency

Many people assume “permanent residency = tax resident” or “working holiday = non-resident.” It doesn’t work that way.

Australian tax residency weighs the whole picture — actual residence, where your family is, your job, your life base, your intent.

For example:

arrive on a temporary visa but plan to stay long-term, and you can be a resident
hold PR but live abroad continuously, and you can be a non-resident

From the moment you’re a tax resident, your worldwide income can be taxable.

Assets left in Korea matter too

As an Australian resident, this Korean income can become reportable here — deposit interest, dividends, rent, overseas investment income.

Tax already paid in Korea can be adjusted through the Korea–Australia tax treaty and the foreign income tax offset. But “I paid tax in Korea, so I’m done” can be a dangerous assumption. → The Korea–Australia tax treaty and double taxation

Mistake ③ Treating super as ‘the company’s money’

Unlike Korea’s national pension, Australian super is an account in your own name. In 2026 employers generally must pay 12% of wages into super.

On a A$100,000 salary:

about A$12,000 a year
over 30 years, hundreds of thousands of dollars

It’s your asset — though locked until you meet an age and retirement condition.

Not all super funds are the same

Many people keep whatever fund their first job assigned. But funds differ a lot in fees, performance, and insurance. A 0.5–1% fee difference can be tens of thousands of dollars over 20–30 years.

When you get your first job, check once — which fund, what fees, and whether insurance is automatically attached.

How Australian tax differs from Korea’s

In Korea, tax is mostly settled through your pay. In Australia it’s:

PAYG withheld from wages
financial year ends (30 June)
you lodge a tax return
refund or top-up

One of the biggest surprises for newcomers is that you have to lodge a return.

2026–27 resident tax rates

Taxable income	Rate
$0 – $18,200	0%
$18,201 – $45,000	15%
$45,001 – $135,000	30%
$135,001 – $190,000	37%
Over $190,000	45%

Plus a Medicare levy of 2% may apply.

The last line

When you first arrive, everyone sets up a bank account and a phone. But the first things to sort, money-wise, are — your TFN, your tax residency, and your super.

Understand these three and your future tax, investing, and pension all start to make sense.

Frequently asked questions

When does tax start once I move to Australia?

Not on arrival — from when you're assessed as a tax resident. Once you are, even interest, dividends, and rent left in Korea can become reportable in Australia. It's judged on your actual residence, ties, and intent, not your visa type.

Do I really need a TFN?

Yes. A TFN is your taxpayer number for tax and super; without it, wages are withheld at a high rate and so is bank interest. Apply free via the ATO around when you start work. But it isn't an all-purpose ID like a Korean resident number — keep it private.

Is super my money?

Yes. Unlike Korea's national pension, Australian super is an account in your own name. In 2026 your employer pays 12% of wages into it, preserved until your preservation age / retirement. A 0.5–1% fee difference can mean tens of thousands of dollars over 20–30 years, so check it once.