Work out your residency status for tax purposes

You will need to work out if you are an Australian or foreign resident for tax purposes. This may be different to your residency status for other purposes.

On this page

• Choose the right tool
• Before you use either tool
• Common situations
• Residency and tax

Choose the right tool

You need to work out if you are a resident for tax purposes in the relevant income year so you can fill out your tax return for that year correctly.

We don't use the same rules as the Department of Home Affairs. This means you:

• can be an Australian resident for tax purposes without being an Australian citizen or permanent resident
• may have a visa to enter Australia but are not an Australian resident for tax purposes.

If you are in Australia for a working holiday see Residency – working holiday or visit.

Most people who come to Australia for a working holiday or visit are not Australian residents for tax purposes. This includes people on subclass 417 or 462 visas (working holiday makers or backpackers)

Before you use either tool

The tool results are based on the information you provide at the time. If your circumstances change you should use it with the updated details. You should use the results for guidance purposes only.

Access the Are you a resident decision tool

If you have come to Australia for work purposes or to live use our Are you a resident? Decision tool decision tool. It will take between 5 and 10 minutes to use.

Access the Determination of residency status – leaving Australia decision tool

If you have been living in Australia and have left or intend to leave, use our Determination of residency status – leaving Australia decision tool. It will take between 5 and 10 minutes to use.

Common situations

We've listed some common residency and tax situations. Tax residency can also depend on whether the country you are going to or coming from has a tax treaty with Australia, so check this also.

Residency and tax

If you're a foreign resident for tax purposes you must declare on your Australian tax return any income earned in Australia, including:

• employment income
• rental income
• Australian pensions and annuities
• capital gains on taxable Australian assets.

The capital gain on your Australian home may need to be included if you are a foreign resident at the time you sign the contract of sale.

Rules for foreign residents from 9 May 2017

Recent changes to the law mean that foreign residents can no longer claim the main residence CGT exemption when they sell property in Australia, except in certain circumstances.

Foreign residents who already held property on 9 May 2017 can claim the main residence CGT exemption until 30 June 2020. For properties acquired after 9 May 2017, the CGT main residence exemption no longer applies to disposal of property from that date, except in certain circumstances.

Study and training support loans

If you have a Higher Education Loan Program (HELP) debt, VET Student Loan (VSL) debt or a Trade Support Loan (TSL) debt and you're a non-resident for tax purposes, you'll need to declare your worldwide income or lodge a non-lodgment advice. You can do this using our online services via myGov or through a registered Australian tax agent.

Our Study and training loan repayment calculatorThis link opens in a new window will help you find out your compulsory repayment or overseas levy amounts.

Declaring income

If you're an Australian resident for tax purposes, you generally have to declare all income you earned both in Australia and internationally on your Australian tax return.

However, if you have a temporary visa you're a temporary resident – this means you only declare income you derived in Australia, plus any income you earn from employment performed overseas for short periods while you are a temporary resident of Australia.

Our Do I need to lodge a tax returnThis link opens in a new window? tool will help work out if you need to lodge a tax return.