Stake Offer for International Student Community!

A free random stock up to the value of $150 if they fund their Wall St account within 24 hours of opening. (Updated: 04th May 2024)

Open Stake Brokerage Account for Free!

Investing in the stock market can seem like a daunting task, especially for international students navigating a new financial landscape. However, with the right guidance and knowledge, it’s entirely possible to start building your investment portfolio even while studying abroad in Australia. In this blog post, we’ll walk you through the steps to invest in Australian shares as an international student, from understanding residency requirements to opening a brokerage account and making your first investment.

Step 1: Determine Your Residency Status

Before you can begin investing in the Australian stock market, it’s essential to determine whether you qualify as an Australian resident for tax purposes. According to the Australian Taxation Office (ATO), if you’re enrolled in a course that lasts for six months or more, you may be considered an Australian resident for tax purposes. This designation allows you to enjoy the same tax benefits as Australian citizens or permanent residents, including the tax-free threshold and lower tax rates. However, it’s crucial to understand your tax obligations both in Australia and in your home country to ensure compliance.

Step 2: Obtain a Tax File Number (TFN)

If you don’t already have one, you’ll need to obtain a Tax File Number (TFN) to invest in Australia. Your TFN is used to track your tax obligations and is required when opening a brokerage account. As an international student, you can apply for a TFN online, and the process is relatively straightforward. Be sure to provide accurate information and follow the instructions carefully to avoid any delays.

Step 3: Open an Online Brokerage Account

Once you have your TFN, the next step is to open an online brokerage account. This account will serve as your gateway to the Australian stock market, allowing you to buy and sell shares. There are several reputable brokerage firms to choose from, including CommSec, SelfWealth, and Stake. Research each option to find the one that best suits your needs as an international student.

We highly recommend Stake as our preferred platform for international students to trade shares. Here is comparision of the trade fees compared to some of the other platforms in Australia. Stake has the lowest trade fees in Australia which is really attractive to international students that are on a budget.

TRADE AMOUNT		COMMSEC	NAB	SELFWEALTH
$0 – $1,000	$3	$5.00 (with CDIA)	$9.95	$9.50
$1,001 – $5,000	$3	$10.00 – $19.95 (with CDIA)	$14.95	$9.50
$5,001 – $10,000	$3	$19.95 (with CDIA)	$19.95	$9.50
$10,001 – $20,000	$3	$29.95 (with CDIA)	$19.95	$9.50
$20,001 – $25,000	$3	$29.95 (with CDIA)	0.11%	$9.50
$25,001 – $30,000	$3	0.12% (with CDIA)	0.11%	$9.50
$30,000+	0.01%	0.12% (with CDIA)	0.11%	$9.50

Step 4: Fund Your Brokerage Account

Before you can start investing, you’ll need to fund your brokerage account. Most brokerage firms offer multiple deposit methods, including bank transfers and credit/debit cards. As an international student, opting for a bank transfer is often the most cost-effective option, as it avoids additional fees associated with card payments. Once your account is funded, you’re ready to make your first investment.

Step 5: Purchase Your First Stock

With your brokerage account funded, it’s time to purchase your first stock. Using the brokerage platform, you can search for the stock you’re interested in and place your order. Whether you’re investing in well-established companies like Commonwealth Bank or exploring emerging industries, conducting thorough research is key to making informed investment decisions.

Frequently Asked Questions

Conclusion

Investing in the Australian stock market as an international student is an excellent way to grow your wealth and gain valuable financial skills. By understanding residency requirements, obtaining a TFN, opening an online brokerage account, funding your account, and purchasing your first stock, you can embark on your investment journey with confidence. Remember to continue learning and stay informed about market trends to optimize your investment strategy for long-term success.

<p>The post How to invest in the stock market as an international student in Australia? first appeared on International Students Australia.</p>

Am I considered an Australian resident for tax purposes?

Yes. If you are studying in Australia for six months or more- you are typically regarded as an Australian resident for tax purposes.

If you’re considered an Australian resident for tax purposes, be prepared to declare all your worldwide income, regardless of its source. This includes income from employment, investments, business activities, and anything else you might earn. Additionally, you’ll be responsible for paying income tax on your taxable income, with rates increasing progressively as your earnings rise. Finally, don’t forget to lodge your annual tax return by the deadline, which typically falls on October 31st each year.

Specific Concerns for International Students

International students face unique financial and tax considerations while pursuing their education in Australia. Below, we delve into specific concerns that demand your attention.

Income from Employment

As an international student in Australia, understanding the nuances of income taxation is crucial. You are permitted to work up to 40 hours per fortnight during your course sessions and unlimited hours during breaks. It’s essential to know that all income earned within Australia, irrespective of your residency status, is subject to Australian income tax. Familiarizing yourself with the tax brackets and rates ensures a smooth financial journey during your stay.

Income from Foreign Sources

While studying in Australia, you may have income from foreign sources. It’s important to note that, as an Australian resident for tax purposes, you are required to declare all your worldwide income on your tax return. Whether you earned money overseas through investments, freelance work, or other means, reporting this income accurately ensures compliance with Australian tax regulations.

Tax File Number (TFN)

To pay taxes, you need to have a personal reference number, so that all your payments and superannuation contributions can be linked to you and this one number. This reference number is known as a Tax File Number or a TFN. TFN or (Tax File Number) is a 9-digit number that identifies you as an employee and a taxpayer in Australia. Anyone who wants to work in Australia will need to have a TFN. Learn more about the TFN through this guide. Apply for a TFN using this link.

Tax Offsets and Benefits

International students are eligible for various tax offsets and benefits similar to other Australian residents. However, specific considerations, such as the Low Income Tax Offset (LITO), may be particularly relevant for students. Understanding and optimizing these offsets can contribute to minimizing your tax liability and maximizing your financial resources.

Australian Income Tax Rates for Residents (2023–24 and 2022–23)

Tax rates are progressive for all residents, meaning the more you earn, the higher the percentage of income you’ll pay in tax. For the 2023-24 financial year, these rates are:

Understanding how progressive tax is calculated

Here are some specific examples of international student circumstances that will make it easier to understand your tax obligations:

Example 1: John’s Part-Time Job

Let’s consider John, an international student working part-time in a cafe. His annual income is $25,000. Now, let’s calculate his income tax for the 2023–24 financial year.

• John’s taxable income: $25,000 – $18,200 (Tax-free threshold) = $6,800
• Tax on the amount between $18,201 and $45,000 (19%): $6,800 * 19% = $1,292
• John’s total tax payable: $1,292

Explanation: John falls into the second income bracket, and his tax is calculated based on the rate for that bracket. Since his income is within this range, there is no tax on the first $18,200, and only the amount above that is taxed at 19%.

Example 2: Maria’s Full-Time Job

Now, let’s consider Maria, another international student with a full-time job earning $80,000 annually working as an Accountant. We’ll calculate her income tax for the same financial year.

• Maria’s taxable income: $80,000 – $18,200 (Tax-free threshold) = $61,800
• Tax on the amount between $18,201 and $45,000 (19%) = $26799 * 19% = $5091.81
• Tax on the amount between $45,001 and $120,000 (32.5%): $34999 * 32.5% = $11,374.675
• Maria’s total tax payable: $16,466.485

Explanation: Maria falls into the third income bracket. Her tax is calculated based on the rates for the second and third brackets. The first $18,200 is tax-free, between $18,201 and $45,000 is taxed at 19%, and between $45,001 and $120,000 is taxed at 32.5%.

Example 3: Sarah’s Professional Income

Let’s take the example of Sarah, an international student working as a software developer with an annual income of $145,000. We’ll calculate her income tax for the 2023–24 financial year.

• Sarah’s taxable income: $145,000 – $18,200 = $126,800
• Tax on the amount between $45,001 and $120,000 (32.5%): $74,999 * 32.5% = $24,374.675
• Tax on the amount between $120,001 and $180,000 (37%): $126,800 – $120,000 = $6,800 * 37% = $2,516
• Sarah’s total tax payable: $24,374.675 + $2,516 = $26,890.675

Explanation: Sarah falls into the third income bracket. Her tax is calculated based on the rates for the second and third brackets. The first $18,200 is tax-free, the amount between $18,201 and $45,000 is taxed at 19%, the amount between $45,001 and $120,000 is taxed at 32.5%, and the amount between $120,001 and $180,000 is taxed at 37%.

<p>The post Understanding Australian Income Tax: A Guide for International Students first appeared on International Students Australia.</p>

I found my first job on Seek. This is after applying for over 60 places. Don’t be discoraged if you’re not able to find a job within the first few week in Australia. Keep applying. You are just one yes away from finding your first job.

Australia, a vibrant and multicultural nation, has long been a beacon for international students seeking a world-class education. With its stunning natural beauty, diverse cultural tapestry, and welcoming atmosphere, Australia offers a unique and enriching study abroad experience. However, for many international students, financial considerations play a significant role in their decision to pursue studies in Australia.

Understanding earning potential as an international student is crucial for planning and managing expenses effectively. Australia is by no means a cheap country to live in. However, having a job during your studies can significantly help your financial position.

How long will it take for me to find a job once I get to Australia?

I remember when I first came to Sydney it took me over 6 months to find a part-time job at a car wash. Therefore, it is crucial to make sure you have sufficient funds to survive until you find a job. The time it takes to find a job in Australia can vary depending on several factors, including your skills, experience, location, and the job market. However, in general, you can expect to spend a few weeks to a few months searching for a job. Here are some tips for finding a job in Australia quickly from my experience:

Initiate Your Job Search Early

Don’t wait until you arrive in Australia to start exploring employment opportunities. Commence your job search online, researching potential positions and applying for relevant roles before embarking on your Australian adventure. It will take a while to understand the job market but once you do you should find it easy to get especially a part-time role.

Targeted Job Search Approach

Focus your job search efforts on positions that align with your skills, experience, and qualifications. Avoid wasting time applying for jobs that don’t match your profile, maximizing the effectiveness of your search strategy. As a student, you will not have a great deal of skill but you can highlight your soft skills and previous experience on your resume. Having previous experience in any job is a big advantage.

Tailored Resume and Cover Letter

Avoid generic applications and invest time in tailoring your resume and cover letter to each specific job you apply for. Highlight relevant skills, experiences, and achievements that demonstrate your suitability for the role. For example, it is much better to take time to apply for 10 places with customized resumes and cover letters rather than applying to 100 roles with a generic copy-paste resume.

Leverage Networking Opportunities:

Networking is a powerful tool for uncovering unadvertised job openings. Engage with your personal and professional network, attend industry events, and join relevant professional organisations to expand your connections and uncover potential opportunities. If you already have friends in Australia they can make the process of finding a job significantly easier by referring you to their current employer.

Where can I start looking for jobs?

• SEEK (https://seek.com.au)
• Indeed (https://au.indeed.com/)
• Gumtree (https://gumtree.com.au/)
• Facebook Marketplace (https://www.facebook.com/marketplace/)

These are all great places to find jobs online. You will be able to apply for jobs directly on each one of these platforms. I found my first job on Seek. This is after applying for over 60 places. Don’t be discouraged if you’re not able to find a job within the first few weeks in Australia. Keep applying. If none of these work your best bet is to walk up to businesses in your local area and hand out your resume in person.

What is the Minimum Wage and Hourly Rates

Australia’s Fair Work Commission sets the minimum wage for all workers, including international students. The current minimum wage is AUD 22.23 per hour. This means that international students can earn a maximum of AUD 882.80 per fortnight during the school term and more during school holidays. This is because the maximum number of hours an international student can work is 40 hours a fortnight when the university session is on. However, it’s important to note that this is the minimum wage, and actual earnings may vary depending on the type of work, location, experience, and skills.

Common Job Options and Earning Potential

Most international students apply for entry-level jobs such as cashier and cleaning roles as they do not require any prior experience. International students have a wide range of job options available to them, catering to their skills, interests, and experience levels. To provide a more concrete understanding of earning potential for international students in Australia, let’s delve into some data. The table below illustrates the average weekly earnings across different job categories:

Finally remember, success in the job search requires dedication, perseverance, and a willingness to adapt to the unique circumstances of the Australian employment landscape. It will not be easy. But it’ll all be worth every penny once you do find your first job.

<p>The post A Comprehensive Guide to Earning Potential for International Students in Australia in 2024 first appeared on International Students Australia.</p>

The Essentials of Budgeting for International Students

International students often face unique financial challenges, balancing tuition fees, accommodation costs, and daily expenses. To navigate these challenges successfully, it’s essential to establish a solid foundation for budgeting. Here are key steps to get you started:

1. Setting Financial Goals

Begin by identifying your financial priorities. Whether it’s covering tuition fees, managing living costs, or saving for future travels, outlining your goals will help you create a focused budget.

2. Understanding Expenses

Categorise your expenses into fixed and variable costs. Fixed costs include items like tuition, rent, and insurance, while variable costs encompass groceries, transportation, and leisure activities. Knowing where your money goes is crucial for effective budgeting.

3. Creating a Budget Plan

Develop a realistic monthly budget that aligns with your financial goals. Utilize budgeting apps or spreadsheets to track income, expenses, and savings. This proactive approach will empower you to make informed financial decisions. If it’s not written down on paper, it’s not a plan.

Cost-Saving Strategies for International Students

Australia is renowned for its high living standards and costs, but with savvy financial planning, international students can enjoy a fulfilling experience without breaking the bank. Consider these cost-saving strategies:

1. Learn how to cook

One of the most effective ways to save money as an international student in Australia is by mastering the art of cooking. Eating out regularly can quickly drain your budget, but preparing your meals at home is not only more economical but also healthier. Plan your meals for the week ahead and create a shopping list accordingly. Batch cooking is a time-efficient strategy where you prepare larger quantities of food that can be portioned and stored for later. This not only saves money but also ensures you always have a home-cooked meal ready to go.

2. Accommodation Alternatives

Explore affordable housing options such as shared accommodations, homestays, or student residences. Additionally, consider suburbs with lower living costs while remaining well-connected to your institution. Generally living closer to the city increases your rent. Pick an area that has great public transport so you can get to your university with minimal effort. I really enjoy living near a train station due to trains being more consistent than busses and also because I can work on my laptop while on the train

3. Student Discounts

Take advantage of the various discounts available to students. From public transportation to entertainment and dining, your student ID can be a powerful tool for saving money.

4. Part-Time Employment

Understand the regulations surrounding part-time work for international students. Secure a part-time job that complements your studies, providing not only financial support but also valuable work experience.

Navigating the Australian Banking System

Understanding the Australian banking system is crucial for efficient money management. Here’s what international students need to know:

1. Opening a Bank Account

Upon arrival, open a local bank account. Many banks offer special accounts for students with reduced fees. Compare different options to find the one that best suits your needs.

2. Managing Transactions

Familiarise yourself with online banking services to monitor transactions and set up automatic payments. This will help you stay on top of bills and avoid late fees.

3. Currency Exchange

Keep an eye on currency exchange rates, especially if you’re receiving money from abroad. Explore cost-effective methods for currency exchange to maximize your funds. I remember paying over 10 dollars a transfer when transferring money overseas. You can make use of new money transfer apps such as Wise to help you save money when transferring money to and from overseas.

Emergency Fund and Financial Resilience

Building financial resilience is essential for international students, providing a safety net for unexpected expenses. Here’s how to establish and maintain an emergency fund:

1. Setting Up an Emergency Fund

Allocate a portion of your budget to an emergency fund. Aim to accumulate three to six months’ worth of living expenses to cover unexpected costs like medical bills or travel emergencies.

2. Smart Spending Habits

Practice mindful spending by distinguishing between wants and needs. Cultivate frugal habits and be conscious of impulse purchases to ensure your budget remains intact.

3. Seeking Financial Advice

If faced with financial challenges, don’t hesitate to seek guidance. Your institution may offer financial counseling services, helping you make informed decisions and manage financial stress.

In conclusion, mastering the art of budgeting is a crucial skill for international students in Australia. By setting clear financial goals, implementing cost-saving strategies, understanding the banking system, and building financial resilience, you can navigate the challenges of student life while enjoying the diverse experiences Australia has to offer. We hope this guide empowers you to make informed financial decisions during your academic journey.

We invite you to share your thoughts and experiences in the comments below. How do you manage your finances as an international student in Australia? Are there specific challenges you’ve faced or successful strategies you’d like to share with fellow students? Let’s build a supportive community where knowledge and experiences can be exchanged for the benefit of all international students in Australia.

<p>The post Smart Money Moves: Navigating Finances as an International Student in Australia first appeared on International Students Australia.</p>

Key Takeaways: If you are an employee you will need a Tax File Number (TFN). If you’re looking to run a business or be a contractor/freelancer you will need an Australian Business Number (ABN) in addition to a TFN.

As an international student if you’re looking to work in any form (part-time, full-time, or casual) it’s important to understand the difference between a TFN (Tax File Number) and an ABN (Australian Business Number). To work in Australia, you must also pay Australian taxes as you will be considered an Australian resident for tax purposes by the ATO (Australian Tax Office). In this guide let’s first take a look at what exactly a TFN and an ABN are and then their differences. These two numbers are unique identifiers that are both used for tax purposes in Australia.

What is a TFN (Tax File Number)?

To work as an international student in Australia, you must also pay Australian taxes. To pay taxes, you need to have a personal reference number, so that all your payments and superannuation contributions can be linked to you and this one number. This reference number is known as a Tax File Number or a TFN. TFN or (Tax File Number) is a 9-digit number that identifies you as an employee and a taxpayer in Australia. Anyone who wants to work in Australia will need to have a TFN. Learn how to apply for one using this guide.

Working with a TFN is the most common way to get paid in Australia. Usually, when you are paid via TFN, your tax is deducted before you receive your salary in your account. This makes things easier when tax time comes around.

What is an ABN (Australian Business Number)?

Another option for receiving payment involves registering as a ‘sole trader’. If you provide professional or technical services and receive payment through as a business you will need an ABN (Australian Business Number). When opting for this approach, you typically receive the gross amount, with no tax deducted beforehand. It is your responsibility to report your earnings during tax time and settle your annual tax liability once per year.

If you decide to pursue this payment method, ensure that you allocate a portion of your earnings to cover your tax obligations. Learn how to apply for one using this guide.

 Things to look out for as an International Student when first starting to work

Keep in mind that for international students, adherence to work limitations during the academic term (when your university session is on) is essential, allowing you to work up to 40 hours per fortnight, regardless of whether you’re engaged with work through an ABN, TFN, or both. You are free to work as many hours as you’d like when the university session is not on (during your holidays).

Frequently Asked Questions

Can you have an ABN and a TFN at the same time?

Yes. You can have both an ABN and a TFN at the same time. You are required to have a TFN first before applying to an ABN. This is due to all your tax obligations being tied to the TFN.

Can I work more than 40 hours if I have both an ABN and a TFN?

As an international student, you are only allowed to work a maximum of 40 hours in total. This rule applies whether you work as part of an ABN or a TFN. Do not make the mistake of thinking you can work more than 40 hours per fortnight just because you work one job under a TFN and the other under an ABN.

How long will it take for me to get my TFN/ABN?

It usually takes between 1-2 business days. However, it may take longer during peak time or if the Australian Tax Office (ATO) needs more documents from you.

Do I need to renew my ABN or TFN each year?

No. Once you have an ABN or a TFN, it is yours for life. However, it’s crucial to keep your details up to date with the Australian Business Register (ABR) and the Australian Tax Office (ATO). If your personal or business details change or become outdated, you should update them to ensure accurate information.

<p>The post Simplified: What is an ABN and TFN in Australia? first appeared on International Students Australia.</p>