For educational purposes only. Not tax, legal, or financial advice. Tax laws change frequently. Consult a registered tax agent or CPA for your specific situation.
Migrants with work-rights visas can register as self-employed by obtaining a TFN and ABN. Most permanent migrants become tax-resident from arrival and are taxed on worldwide income. Working holiday makers (subclass 417/462) pay a flat 15% from dollar one with no tax-free threshold. Temporary residents receive a CGT exemption on non-Australian assets under ITAA 1997 s 768-915.
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Migrants who hold a visa with work rights can register as self-employed in Australia by applying for a Tax File Number (TFN) and an Australian Business Number (ABN). Tax residency is determined by intention and living arrangements, not visa type alone: most permanent migrants become tax-resident from arrival and must declare worldwide income from that date. Temporary residents receive a significant concession, paying tax only on Australian-sourced income and certain foreign employment income (no CGT on most foreign assets). Working holiday makers (subclass 417/462) face a flat 15% tax rate from dollar one with no tax-free threshold. GST registration is compulsory at $75,000 turnover. Medicare access depends on visa class, with Reciprocal Health Care Agreements covering medically necessary treatment for eligible visitors from 11 countries.
The reality this serves
Migrants arriving in Australia on skilled, partner, humanitarian, or working holiday visas who are starting businesses, working as sole traders, or navigating the Australian tax and welfare system for the first time.
How do I get a TFN and ABN as a migrant?
A Tax File Number (TFN) is required for anyone working in Australia. Migrants can apply once in Australia with a visa that allows work. Without a TFN, employers must withhold tax at the highest marginal rate, and banks withhold tax on interest.
To operate as a sole trader or contractor, you need an Australian Business Number (ABN), obtained online through the Australian Business Register. This is available to foreign-born individuals carrying on an enterprise in Australia. The ABN is separate from your TFN and identifies your business in all dealings with the ATO and other businesses.
If your projected GST turnover is at least $75,000, you must also register for GST. Other registrations (PAYG withholding if hiring staff, workers compensation insurance by state) may apply depending on your activities.
ABN and business registration do not override visa conditions. Self-employment is only lawful if your specific visa permits it. Always check your visa grant letter before registering a business.
A TFN is needed for all workers in Australia. An ABN is required for sole traders and contractors carrying on an enterprise. Both are available to migrants with work-rights visas.(A New Tax System (Australian Business Number) Act 1999 s 8; ATO guidance ATO applying for a TFN and ABN guides)
What is the temporary resident CGT exemption?
Temporary residents (broadly, non-Australian or non-New Zealand citizens on temporary visas) are only taxed on Australian-sourced income and certain foreign employment income. Critically, they are exempt from CGT on assets that are not taxable Australian property.
This means a temporary resident who holds overseas shares, foreign property, or other non-Australian assets pays no Australian CGT on those assets while they remain a temporary resident. If they later become a permanent resident, the concession ceases and those assets come into the Australian CGT net.
Taxable Australian property (Australian real estate, certain mining rights, and interests in entities whose value is principally from Australian real property) remains subject to CGT for temporary residents.
This concession is a significant planning point for skilled migrants on temporary visas who hold substantial foreign investment portfolios.
Temporary residents are exempt from CGT on foreign assets that are not taxable Australian property. The exemption ceases when they become permanent residents.(ITAA 1997 s 768-915 (temporary resident CGT exemption); ATO guidance ATO foreign and temporary residents CGT guide)
What tax rate applies to working holiday makers?
Working holiday makers on subclass 417 (Working Holiday) or 462 (Work and Holiday) visas are taxed at a flat 15% on the first $45,000 of income, with no tax-free threshold. Income above $45,000 is taxed at standard resident rates (30% on the next portion, and so on up the bracket scale).
This rate applies regardless of whether the working holiday maker would otherwise qualify as a resident under normal residency tests. Employers must register as working holiday maker employers with the ATO and apply the correct withholding rate.
Self-employed working holiday makers earning business income are assessed at the same rates. They lodge an individual return with a business schedule and pay tax on their net business profit at the 15% flat rate for the first $45,000.
Superannuation Guarantee contributions are owed by employers for working holiday makers on the same basis as any other worker. When the visa holder permanently departs Australia, they may be able to claim their super back as a Departing Australia Superannuation Payment (DASP), taxed at 65% for working holiday makers.
Working holiday makers (subclass 417/462) are taxed at a flat 15% on the first $45,000 of income with no tax-free threshold.(ITAA 1997 Division 3A (working holiday maker income); ATO guidance ATO working holiday makers guide)
How does Medicare work for migrants?
Medicare enrolment is available to Australian citizens, permanent residents, permanent visa holders, most New Zealand citizens, and certain other visa holders covered by ministerial order. Enrolment can be done online through myGov or using a paper form, with proof of identity, visa, and Australian residence.
Australia has Reciprocal Health Care Agreements (RHCA) with 11 countries: Belgium, Finland, Italy, Malta, the Netherlands, New Zealand, Norway, the Republic of Ireland, Slovenia, Sweden, and the United Kingdom. Eligible visitors from RHCA countries on temporary visas that do not themselves provide full Medicare access can still receive medically necessary treatment under the agreement. Some RHCA arrangements have time limits (Italy and Malta are typically limited to six months).
The Medicare levy (2% of taxable income) applies to all tax residents entitled to Medicare benefits. If you are not entitled to Medicare and hold a valid exemption certificate, you are exempt from the levy. The Medicare Levy Surcharge (additional 1% to 1.5%) applies to higher earners without private hospital cover.
Medicare enrolment is available to permanent residents and certain visa holders. RHCA covers medically necessary treatment for eligible visitors from 11 countries.(Health Insurance Act 1973 s 3 (definition of eligible person); ATO guidance Services Australia Medicare enrolment guide)
Allowable expenses in context
Migrant sole traders claim deductions under the same rules as Australian-born businesses. Overseas qualification recognition and skills assessment fees (Trades Recognition Australia, AHPRA registration for health professionals) are deductible where they relate to maintaining or extending skills in your current occupation. Costs of initially qualifying for an Australian profession are not deductible. Translation and certification of business documents are deductible as operating expenses. ABN registration is free. Business-use portions of phone, internet, vehicle, tools, insurance, and professional memberships are all deductible under standard rules.
Support schemes
Temporary Resident CGT Exemption
Eligibility: Non-Australian/non-NZ citizens on temporary visas. Applies while the individual remains a temporary resident for tax purposes.
Adult Migrant English Program (AMEP)
Eligibility: Eligible adult migrants and humanitarian entrants. Must generally start within 12 months of arrival and complete within five years.
Skills for Education and Employment (SEE)
Eligibility: Eligible job seekers needing language, literacy, numeracy, and digital skills training. Includes people aiming at self-employment. Referred via employment services providers or settlement agencies.
Reciprocal Health Care Agreements (RHCA)
Eligibility: Eligible visitors from 11 countries (Belgium, Finland, Italy, Malta, Netherlands, New Zealand, Norway, Republic of Ireland, Slovenia, Sweden, United Kingdom) on temporary visas.
Departing Australia Superannuation Payment (DASP)
Eligibility: Temporary residents who have permanently departed Australia and whose visa has ceased or expired. Not available to Australian citizens or permanent residents.
Frequently asked questions
Can I be self-employed on a student visa?+
Student visas (subclass 500) allow limited work (typically up to 48 hours per fortnight during study periods, unlimited during scheduled breaks). Self-employment that exceeds these hours or breaches other conditions can result in visa cancellation. Check your specific visa conditions before registering an ABN. If your visa restricts you to an approved employer, self-employment is not permitted.
Do I need to declare foreign income earned before I arrived in Australia?+
No. Foreign income from periods before you became an Australian tax resident is not taxable in Australia, even if the money is received in your Australian bank account after arrival. What matters is when the income was earned and your residency status at that time. Once you are resident, all new worldwide income is assessable (subject to temporary resident concessions if applicable).
What is the Newly Arrived Resident's Waiting Period for Centrelink?+
Most new permanent residents cannot access Centrelink payments (JobSeeker, some family and parenting payments) for up to four years after arrival. Humanitarian entrants (refugees, protection visa holders) are typically exempt. Partner and family visa holders may have different rules. Migrants starting a business should not rely on Centrelink as a safety net in the early years unless they fall into an exempt category.
Can I claim my super back when I leave Australia?+
Temporary residents who permanently depart and whose visa has ceased or expired can claim a Departing Australia Superannuation Payment (DASP). The payment is taxed at 35% for most temporary residents and 65% for working holiday makers. Permanent residents and citizens cannot access DASP. Apply through the ATO online DASP portal after departure.