189 Visa Tax Calculator Australia: Your Complete Tax Guide for FY 2025-26

Published 29 May 2026 · 7 min read

If you hold a Skilled Independent visa (Subclass 189), you're an Australian permanent resident — which means you're treated as an Australian resident for tax purposes. In FY 2025-26, a 189 visa holder earning $80,000 pays roughly $63,612 in take-home pay after income tax and Medicare levy, with their employer contributing an additional $9,600 in super. This guide covers everything you need to know about filing taxes as a 189 visa holder, from residency status to Medicare to superannuation.

Are 189 Visa Holders Australian Residents for Tax Purposes?

Yes — holders of the Subclass 189 (Skilled Independent) visa are Australian permanent residents, and the ATO generally treats them as Australian residents for tax purposes. This means you're taxed on your worldwide income, not just what you earn in Australia.

The ATO uses several tests to determine tax residency, including the "resides test" and the "183-day test." As a 189 visa holder who lives and works in Australia, you comfortably satisfy these criteria. Your tax residency status remains until you permanently leave Australia and the ATO determines you have become a foreign resident.

The key benefit of being an Australian resident for tax purposes is access to the tax-free threshold of $18,200. Non-residents pay tax from the first dollar earned (at 32.5% on the first $135,000), so resident status saves many 189 visa holders thousands of dollars each year.

FY 2025-26 Tax Rates for 189 Visa Holders

As a permanent resident, you pay the same tax rates as any other Australian resident. The Stage 3 Tax Cuts (effective from 1 July 2024) apply to everyone. Here are the current rates for FY 2025-26:

Note that from 1 July 2026, the 16% rate will drop to 15%, and from 1 July 2027 it will fall further to 14%. But for FY 2025-26, 16% is the rate that applies to your second tax bracket. Use our income tax calculator to see exactly how much tax you'll pay on your specific salary.

Medicare Levy and the 189 Visa

One of the biggest financial differences between visa types is Medicare eligibility. Subclass 189 visa holders are eligible for Medicare, even though they are not yet citizens. This means you:

• Pay the Medicare Levy (2% of your taxable income) — just like citizens
• May need to pay the Medicare Levy Surcharge (MLS) if you earn above $101,001 as a single and don't have private hospital cover
• Can enrol in Medicare — you should do this as soon as your visa is granted

Once enrolled in Medicare, you'll pay the standard 2% levy on your taxable income. For example, on a $90,000 salary, your Medicare Levy would be $1,800. If you earn above the MLS threshold ($101,001 for singles) and don't hold appropriate private hospital cover, an additional 1–1.5% surcharge applies.

Check our Medicare Levy calculator to see how much you'll owe based on your income and whether you need to worry about the surcharge.

Superannuation for 189 Visa Holders

As a permanent resident, your employer must pay the Superannuation Guarantee (SG) into a super fund on your behalf. For FY 2025-26, the rate is 12% of your ordinary time earnings. This is paid on top of your salary, not deducted from it (unless your employment contract specifies it's salary-inclusive).

Here's what super means for a 189 visa holder at different salary levels:

Important: if you leave Australia permanently in the future and your visa is cancelled or expires, you may be able to access your super through the Departing Australia Superannuation Payment (DASP). This is a specific rule for temporary residents and former visa holders — and the tax treatment is different from what applies while you're a resident.

Use our superannuation calculator to see how your employer's contributions will grow over time.

Tax-Free Threshold and the Low Income Tax Offset

As an Australian resident for tax purposes, you are entitled to the $18,200 tax-free threshold. This means the first $18,200 you earn each financial year attracts no income tax. Non-residents don't get this benefit — they're taxed from dollar one at 32.5%.

You may also be eligible for the Low Income Tax Offset (LITO). In FY 2025-26, LITO provides a maximum offset of $700 for taxpayers earning up to $37,500. It then phases out at 5 cents per dollar, fully disappearing at $66,667.

Many skilled migrants on 189 visas earn well above the LITO phase-out threshold, so this offset typically doesn't apply once you've settled into a professional role. But if you arrive mid-year and start working part-way through the financial year, your total annual income may be lower — making LITO relevant in your first year.

Sample 189 Visa Tax Calculation: $85,000 Salary

Let's walk through a complete tax calculation for a 189 visa holder earning $85,000 in FY 2025-26:

The income tax of $16,288 is calculated as:

• $0 – $18,200 at 0% = $0
• $18,201 – $45,000 at 16% = $26,800 × 16% = $4,288
• $45,001 – $85,000 at 30% = $40,000 × 30% = $12,000
• Your employer also contributes $10,200 in super (12% SG)

Try our take-home pay calculator to get an instant breakdown for your specific 189 visa salary — whether you're earning $70,000, $100,000, or $150,000.

Can 189 Visa Holders Salary Sacrifice?

Absolutely. As a permanent resident employed in Australia, you can take advantage of salary sacrifice arrangements just like any other employee. Salary sacrificing allows you to redirect pre-tax income toward benefits like additional super contributions, a novated car lease, or work-related items.

The most common strategy for 189 visa holders is salary sacrificing into super. With the concessional contributions cap at $30,000 for FY 2025-26 (including your employer's SG), you have room to contribute extra. At a 30% marginal rate (which applies to income between $45,001 and $135,000), every dollar you sacrifice saves you 30 cents in tax — while the super fund pays just 15%.

Use our salary sacrifice calculator to model how much you could save based on your salary and goals.

HECS-HELP and 189 Visa Holders

If you studied in Australia and have a HECS-HELP debt, it remains with you as a permanent resident. The repayment threshold for FY 2025-26 is $67,000. Once your income exceeds this level, you must make compulsory repayments alongside your tax.

Under the new marginal system for FY 2025-26, repayments are calculated as follows:

• $67,001 – $125,000: 15 cents per dollar over $67,000
• $125,001 – $179,285: $8,700 + 17 cents per dollar over $125,000
• $179,286+: 10% of total income

For example, on an $85,000 salary, your HECS repayment would be ($85,000 − $67,000) × 15% = $2,700 per year. Calculate your exact repayment with our HECS-HELP repayment calculator.

Frequently Asked Questions

Do 189 visa holders need a TFN?

Yes. You need a Tax File Number (TFN) to work in Australia. Without one, your employer must withhold tax at the highest marginal rate (45% plus Medicare levy), which means significantly less take-home pay. Apply for a TFN through the ATO website as soon as your 189 visa is granted.

Can 189 visa holders access Medicare?

Yes — Subclass 189 visa holders are eligible for Medicare. You must enrol at a Medicare Service Centre (bring your passport and visa grant letter). Once enrolled, you pay the Medicare Levy and are covered by Australia's public healthcare system. You may also choose to take out private hospital insurance to avoid the Medicare Levy Surcharge if your income exceeds the threshold.

Are 189 visa holders taxed on overseas income?

As Australian residents for tax purposes, 189 visa holders are taxed on their worldwide income. This includes foreign bank interest, rental income from overseas properties, dividends from foreign shares, and any other global earnings. You may be able to claim a foreign income tax offset if you've already paid tax in another country on the same income, under Australia's double tax agreements.

What happens to my super if I leave Australia?

If you permanently leave Australia and your 189 visa is cancelled or expires, you may be eligible to claim a Departing Australia Superannuation Payment (DASP). This is taxed at different rates depending on the component — taxable components attract 35% or 45% tax depending on your circumstances, while tax-free components are paid without withholding.

Can I claim work-related deductions as a 189 visa holder?

Absolutely. The same deduction rules apply to permanent residents as to citizens. You can claim deductions for work-related expenses such as home office costs, tools and equipment, professional memberships, travel between worksites, and self-education directly related to your current employment. Just keep records as the ATO requires.

Summary

Here's what every 189 visa holder needs to know about Australian tax in FY 2025-26:

• Tax residency: You're an Australian resident for tax purposes — taxed on worldwide income with access to the $18,200 tax-free threshold
• Tax rates: Same as citizens — 0%, 16%, 30%, 37%, and 45% brackets under Stage 3 tax cuts
• Medicare: Enrol as soon as you arrive; you pay the 2% levy and may owe MLS above $101,001
• Super: Employer pays 12% SG on top of your salary (rising to 12.5% from July 2026)
• Worldwide income: Declare all global earnings, but claim foreign tax offsets where double tax agreements apply
• DASP: If you leave permanently, you can access your super but the tax treatment is less favourable

Use our take-home pay calculator for an instant breakdown of your specific salary, and explore the income tax calculator to see how the progressive tax brackets apply to your 189 visa income.