Casual vs Part-Time vs Full-Time Work in Australia: Tax Guide for Nepali Workers 2026

What is the difference between casual, part-time and full-time work?

Employment type matters because Australian workplace entitlements differ. Full-time and part-time employees generally have a firm advance commitment to ongoing employment and can usually expect regular hours. Casual employees are treated differently under the Fair Work rules.

Do casual workers pay more tax than part-time workers?

Not simply because they are casual. A casual employee may receive a higher hourly rate because of casual loading. If this produces higher taxable income, more tax may be withheld or ultimately payable because the worker earned more—not because the tax system imposes a special penalty on casual employment.

Is casual loading tax-free?

No. Casual loading is generally part of your salary and wages. It may compensate for certain entitlements that casual employees do not receive in the same way as permanent employees, but that does not make the loading tax-free.

What about part-time workers?

Part-time employees generally work regular hours averaging less than 38 hours per week. They generally receive the same types of minimum permanent employee entitlements as full-time employees, such as annual leave and personal leave, on a pro-rata basis.

For tax purposes, part-time salary and wages are employment income. Working fewer hours may mean lower annual income, but being part-time does not itself create a separate tax rate.

What about full-time workers?

Full-time employees usually work an average of 38 ordinary hours per week, although the actual arrangement can depend on an award, enterprise agreement or employment contract. Full-time employees generally receive applicable National Employment Standards entitlements including paid leave.

Full-time status does not automatically mean you pay a higher percentage of tax than another worker. The amount ultimately payable depends on taxable income and other relevant circumstances.

How does PAYG withholding work?

Employers generally withhold PAYG tax from salary and wages and send the withheld amounts to the ATO. The amount withheld from an individual pay can depend on the amount paid, pay frequency, TFN declaration information and other withholding factors.

PAYG withholding is not necessarily your final tax liability. Your annual tax return brings together your income, tax already withheld, eligible deductions and other relevant tax items.

Can all three employment types claim the tax-free threshold?

Employment type itself does not decide whether you are entitled to the tax-free threshold. Australian residents for tax purposes are generally entitled to the $18,200 tax-free threshold.

If you have more than one payer at the same time and expect to earn more than $18,200 in total, the ATO generally says to claim the tax-free threshold from only one payer, usually the payer providing the highest salary or wage.

What if you have a full-time job and a casual job?

Income from both jobs generally contributes to your total assessable employment income. Having one full-time employer and one casual employer does not create two separate annual income-tax calculations.

What if you have two part-time or casual jobs?

The same multiple-payer principle applies. Each employer may withhold tax based on information provided to them, but the tax return looks at your total income. This is why workers with multiple jobs can sometimes receive a smaller refund than expected or have an amount owing.

Does changing employment type reset your tax?

No. Moving from casual to part-time or full-time during the financial year does not restart the tax year. Income received before and after the change is considered when your annual tax position is calculated.

If the same employer changes your employment arrangement, check your payslips and income statement to ensure salary, tax withheld and other information is reported correctly.

Changing from casual to permanent employment

Under the current Fair Work rules, casual employees can change to permanent full-time or part-time employment if the employer and employee agree. Eligible casual employees can also have access to the employee choice pathway under the National Employment Standards.

The employment-law requirements for changing status are separate from your income-tax calculation. Moving to permanent employment can change workplace entitlements and pay structure without creating a separate tax-rate system.

Do casual, part-time and full-time workers get super?

Employment type alone does not mean an employee misses out on super guarantee. Where the super guarantee rules apply, eligible employees can have employer super entitlements whether they are casual, part-time or full-time.

For the 2026–27 income year, the super guarantee rate is 12%. From 1 July 2026, Payday Super rules changed the timing for employer super contributions.

Can all employment types claim work-related deductions?

Potentially, yes. A deduction does not become available merely because you are casual, part-time or full-time. The expense needs to satisfy the relevant work-related deduction rules.

Broadly, you need to have incurred the expense yourself, it must have the required connection with earning your employment income, private use must be excluded, and relevant records must be kept. You generally cannot claim an expense that your employer reimbursed.

Uniform and work-clothing deductions

Eligible occupation-specific clothing, protective clothing and certain compulsory or registered uniforms may be deductible. Conventional clothing is generally private even if an employer requires a particular colour or style.

The same underlying clothing rules apply whether you work casual, part-time or full-time.

Phone and internet expenses

If you incur phone or internet costs while performing your employment duties, an eligible work-related portion may be deductible. You need to separate private use from work use and keep appropriate evidence.

Your employment status does not automatically make your phone bill deductible.

Car and travel expenses

Ordinary travel between home and a regular workplace is generally private. This does not normally change simply because you are a casual employee, work unusual hours or have a part-time roster.

Eligible work travel undertaken in performing duties or, in some circumstances, directly between separate workplaces can be treated differently.

Night shifts, weekends and public holidays

Penalty rates, shift loadings and overtime can increase your employment income. These amounts are generally taxable salary and wages. There is no separate final “weekend tax rate” or “night-shift tax rate” simply because of when you work.

Leave payments and employment type

Full-time and part-time employees generally accrue applicable paid annual and personal leave under the National Employment Standards, while casual employees generally receive a casual loading or specific casual rate and do not receive most forms of paid leave in the same way.

Where paid leave is received as employment income, it can form part of the employee's tax reporting. Specific rules can apply to certain termination and leave payments.

Which employment type gives the biggest tax refund?

There is no employment type that automatically produces a bigger refund. A tax refund depends on the difference between your final tax position and amounts already paid or withheld, together with eligible offsets, deductions and other relevant items.

International students and employment type

International students can work as casual, part-time or full-time employees where their employment and visa conditions permit. Employment-law status and tax residency are separate concepts.

Do not assume that being an international student automatically determines your Australian tax residency or your tax-free threshold entitlement. Tax residency needs to be considered under the tax rules.

Casual vs part-time vs full-time: tax comparison

Example: moving from casual to part-time

Ramesh works casually for the first five months of the financial year and later accepts a permanent part-time position with the same employer. His pay structure and workplace entitlements may change, but the salary and wages earned under both arrangements still form part of his income for the same financial year.

Example: part-time plus casual weekend job

Maya has a regular part-time office job and also works casual weekend shifts. She should make sure income from both employers is included in her return. If she expects her combined income to exceed the tax-free threshold, she would generally claim the threshold from only one payer.

Records to keep

• employment contracts or letters confirming employment status
• payslips from every employer
• income statements and payment summaries where applicable
• TFN declaration information
• records of PAYG tax withheld
• receipts and calculations for eligible work-related deductions
• superannuation records
• records of allowances and reimbursements
• documents relating to changes in employment status.

Common mistakes Nepali workers should avoid

• assuming casual workers have a special higher tax rate
• thinking casual loading is tax-free
• assuming part-time income does not need to be declared
• claiming the tax-free threshold from multiple simultaneous employers without considering total income
• forgetting income from a second or previous job
• assuming a change from casual to permanent restarts the tax year
• confusing employment status with tax residency
• assuming casual employees never receive super
• claiming ordinary commuting or conventional clothing as work deductions
• claiming reimbursed expenses.

2026 checklist

• Confirm whether you are casual, part-time or full-time.
• Check the award, agreement or employment terms that apply to your role.
• Review your payslips and PAYG withholding.
• Check how you completed your TFN declaration.
• If you have multiple jobs, review where you claimed the tax-free threshold.
• Make sure every employer's income is included at tax time.
• Review eligible work-related expenses.
• Check employer super contributions.
• Keep records when changing employment status.
• Seek professional advice where your employment, residency or tax circumstances are unclear.

General information only: This article provides general Australian tax and employment information and is not personal tax, financial or legal advice. Tax treatment and workplace entitlements depend on individual circumstances, applicable awards or agreements, tax residency and current law. Check current ATO and Fair Work guidance or obtain professional advice before acting.