Australian Taxation laws for Residents and Non-Residents


Are you a citizen of Australia for tax functions? It may seem like an easy concern, but it can be remarkably challenging to find out the answer if you are newly gotten here and operating in Australia, or an Australian resident living overseas. Understanding the response to this concern can make a big difference in the quantity of tax you require to pay. 

And your status can change if your personal circumstances change– so it is essential to stay notified!

Being an Australian resident for tax purposes is not always like being an Australian local for other purposes. Normally, an Australian homeowner for tax functions is someone whose normal place of abode is in Australia.

You do not require to be an Australian citizen or a long-term homeowner for immigration functions to be thought about as a tax resident. And you can also be and be an Australian resident considered a foreign local for tax functions.

Why Does It Matter?

The law treats non-residents and homeowners in a different way. Australian locals are generally taxed on all of their around the world income. Non-residents are taxed just on earnings sourced in Australia. The minimal tax rates are various for income below $37,000, indicating that effective tax rates are higher for non-residents.

Australian Residents

You need to declare your around the world earnings if you are an Australian resident and you have to lodge a tax return.


If you are a non-resident, you only require to lodge an income tax return if you have income that is sourced in Australia, such as incomes, business earnings or capital gains on Australian land and structures.

If you have any doubt at all about your status, we highly encourage you to consult one of our expert advisors at Hillyer Riches, just click my company and our expert advisers are here to help you, and we’ll support you through the process every step of the way.

Work Out Your Tax Residency

To comprehend your tax situation, you first require to work out if you are a Foreign or Australian citizen for tax functions.

We don’t use the same guidelines as the Department of Home Affairs (formerly called the Department of Immigration and Border Protection). This implies you:

  • can be an Australian citizen for tax purposes without being an Australian citizen or irreversible local
  • may have a visa to enter Australia, however, are not an Australian local for tax functions.

Were You An Australian Resident For Tax Purposes?

Based upon details from your last year’s income tax return, we have made the choice for you. You might require to alter your response if your situations are different for 2019– 20.

If you were an Australian homeowner for tax functions from 1 July 2019 to 30 June 2020, select Yes. Otherwise, choose No and get in only the dates when you were a resident.

Generally, we consider you to be an Australian local for tax purposes if you:

  • have actually constantly resided in Australia or you have actually come to Australia and live here permanently
  • have remained in Australia continuously for 6 months or more, and for the majority of that time you operated in the one job and lived at the same location
  • have been in Australia for more than six months throughout 2019– 20, unless your normal house is abroad and you do not intend to reside in Australia

International Tax For Individuals

Australian locals are normally taxed on their worldwide earnings from all sources. Short-lived locals of Australia and foreign homeowners are normally taxed only on their Australian-sourced earnings, such as money they earn working in Australia.

To understand your tax scenario you first require to work out if you are a Foreign or Australian homeowner for tax functions. 

This might be different to your residency status for other functions– for instance, you could be an Australian citizen for tax purposes even if you’re not an Australian person or irreversible homeowner

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