485 Visa Tax Calculator: How Much Tax Do You Pay in Australia?
Published 3 March 2026 · 6 min read
Just graduated and working in Australia on a Subclass 485 Temporary Graduate visa? Understanding your tax obligations is one of the most important things you can do to avoid nasty surprises at tax time. The good news: most 485 visa holders pay the same income tax rates as Australian residents — and may even be exempt from the Medicare Levy, which means a slightly larger pay packet than a permanent resident on the same salary.
This guide walks you through exactly how Australian tax works on a 485 visa for FY 2025-26, with a worked example so you can estimate your own take-home pay. Use our take-home pay calculator to run your specific numbers instantly.
Are You a Tax Resident or Non-Resident?
Your tax residency status is the single most important factor in how you're taxed in Australia. It determines whether you get the $18,200 tax-free threshold, what rates apply, and whether you pay the Medicare Levy.
Most 485 visa holders are considered Australian tax residents. The ATO uses a "resides" test — if you live in Australia on an ongoing basis, have your home here, and don't maintain a permanent home overseas, you're a resident for tax purposes. Living and working in Australia full-time on a 485 visa almost always satisfies this test.
Key rule of thumb:
- Living and working in Australia continuously on a 485 visa → likely a tax resident
- Just arrived recently or spending significant time overseas → check with a tax agent
- Tax residency ≠ permanent residency — they are completely separate concepts
If you are a non-resident for tax purposes, different (higher) rates apply: you pay 32.5% on every dollar up to $135,000 with no tax-free threshold and no LITO. This article focuses on the more common scenario — 485 visa holders who are tax residents.
Income Tax Rates for 485 Visa Holders (FY 2025-26)
As an Australian tax resident on a 485 visa, you pay income tax at exactly the same progressive rates as Australian citizens and permanent residents. Following the Stage 3 Tax Cuts that took effect from 1 July 2024, the rates for FY 2025-26 are:
| Taxable Income | Tax Rate | Tax on This Portion |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 16% | Up to $4,288 |
| $45,001 – $135,000 | 30% | Up to $27,000 |
| $135,001 – $190,000 | 37% | Up to $20,350 |
| $190,001+ | 45% | 45c per $1 over |
You also receive the Low Income Tax Offset (LITO) — up to $700 off your tax bill — as long as your income is below $66,667. This phases in at $37,500 and completely phases out at $66,667. Visit our income tax calculator to see the full breakdown for your salary.
Medicare Levy: You May Be Exempt
This is where 485 visa holders often have an advantage over permanent residents. The Medicare Levy is normally 2% of your taxable income and funds Australia's public healthcare system. However, you can only access Medicare if you're a citizen, permanent resident, or from a country with a Reciprocal Health Care Agreement (RHCA) with Australia.
Countries with an RHCA include: the United Kingdom, Ireland, New Zealand, the Netherlands, Belgium, Sweden, Norway, Finland, Slovenia, Italy, and Malta.
What this means for your tax:
- From an RHCA country? You can enrol in Medicare and pay the 2% levy normally.
- Not from an RHCA country? You cannot access Medicare, so you can apply for a Medicare Levy Exemption Certificate from the ATO. If approved, you pay 0% Medicare Levy.
- You must apply for this exemption — it is not automatic. Contact the ATO or a tax agent.
On a $75,000 salary, the Medicare Levy is $1,500. Being exempt could mean $1,500 extra per year in your pocket. Check the Medicare Levy calculator to understand exactly what applies to you.
Worked Example: 485 Visa Holder Earning $75,000
Let's say you're a 485 visa graduate working in Sydney, earning $75,000 per year, and you're not eligible for Medicare (most common scenario for graduates from Asia, India, etc.).
| Income Portion | Rate | Tax |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 | 16% | $4,288 |
| $45,001 – $75,000 | 30% | $9,000 |
| LITO (fully phased out at $66,667) | — | $0 |
| Total Income Tax | $13,288 |
Compare: a permanent resident on the same $75,000 would pay $1,500 in Medicare Levy, leaving $60,212 take-home — $1,500 less per year.
Use our take-home pay calculator to enter your exact salary and see a full breakdown including different Medicare Levy scenarios.
Superannuation on a 485 Visa
Great news — you are entitled to superannuation just like any other Australian employee. Your employer must pay the Superannuation Guarantee (SGC) of 12% on top of your salary for FY 2025-26. That's an extra $9,000 per year on a $75,000 salary.
- Super is paid into a fund of your choice
- Contributions are taxed at 15% inside the fund (lower than most income tax rates)
- When you leave Australia permanently, you can claim your super back as a Departing Australia Superannuation Payment (DASP)
- DASP is taxed at 35% for working holiday makers, but at a different rate for 485 visa holders — check the ATO for current DASP tax rates
Use our superannuation calculator to see how your super balance grows over your time in Australia.
HECS-HELP and Student Loans
HECS-HELP is Australia's income-contingent student loan scheme. The good news for most 485 visa holders: if you studied in Australia as an international student, you were not eligible for HECS-HELP — you would have paid full tuition fees upfront. So most 485 visa holders have no HECS debt and no compulsory repayments to worry about.
There are rare exceptions — for example, if you were an Australian citizen or permanent resident when you studied, then later changed status. If you do have a HECS debt, the repayment threshold for FY 2025-26 is $67,000. Above that, you repay 15 cents for every dollar over the threshold.
See our HECS-HELP repayment calculator if you're unsure whether you have a debt balance.
Quick Tax Estimates by Salary (485 Visa, Medicare Exempt)
| Gross Salary | Income Tax | Medicare | Take-Home | Effective Rate |
|---|---|---|---|---|
| $55,000 | $8,488 | $0 | $46,512 | 15.4% |
| $65,000 | $11,488 | $0 | $53,512 | 17.7% |
| $75,000 | $13,288 | $0 | $61,712 | 17.7% |
| $90,000 | $17,788 | $0 | $72,212 | 19.8% |
| $110,000 | $23,788 | $0 | $86,212 | 21.6% |
Note: Income tax figures above include LITO where applicable. LITO fully phases out at $66,667 — salaries above that receive $0 LITO.
Tips for 485 Visa Holders at Tax Time
- Apply for a Medicare Levy Exemption Certificate early. Contact the ATO (or use their online services) before you lodge your tax return. The certificate exempts you from the 2% levy for the periods you weren't eligible for Medicare.
- Lodge a tax return every year. Even if you think you've paid the right amount, lodging your return is mandatory. You may also receive a refund if too much was withheld by your employer.
- Claim work-related deductions. You're entitled to deductions just like any resident — home office expenses, work equipment, professional development, and industry-specific costs all reduce your taxable income.
- Consider salary sacrifice into super. Reducing your taxable income via pre-tax super contributions is taxed at just 15% inside the fund, well below most people's marginal rate. Our salary sacrifice calculator can show you the savings.
- Track your visa grant and end date. If you arrived mid-year, your tax-free threshold may be pro-rated. A tax agent can help you lodge correctly for partial-year residency.
Summary
Here's what you need to know about tax on a 485 Temporary Graduate visa in FY 2025-26:
- Tax residency: Most 485 visa holders living full-time in Australia are Australian tax residents
- Income tax: Same progressive rates as residents (0%, 16%, 30%, 37%, 45%)
- Tax-free threshold: $18,200 — you keep this as a tax resident
- LITO: Up to $700 offset if your income is under $66,667
- Medicare Levy: 2% normally, but you can apply for an exemption if you're ineligible for Medicare
- HECS-HELP: Generally not applicable — most 485 holders paid tuition fees as international students
- Superannuation: 12% from your employer — you can claim it back as DASP when you leave
Ready to calculate your exact take-home pay? Use our take-home pay calculator to get an instant, personalised breakdown — or explore the income tax calculator to see how different salary levels compare.