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  • Work out your residency status for tax purposes

    To understand your tax situation you first need to work out if you are an Australian or foreign resident for tax purposes.

    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.

    Use the 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.

    If you are in Australia for:

    If you have been living in Australia and have left or intend to leave, see Determination of residency status – leaving AustraliaThis link opens in a new window decision tool.

    It will take between 5 and 10 minutes to use these tools.

    Disclaimer

    The tool results are based on the information you provided at the time of calculation. You should use these results as an estimate and for guidance purposes only.

    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.

    Are you a resident for tax purposes?

    If you:

    You are generally:

    leave Australia temporarily and do not set up a permanent home in another country

    an Australian resident for tax purposes

    are an overseas student enrolled in a course that is more than six months long at an Australian institution

    an Australian resident for tax purposes

    are visiting Australia, working and living in the one location and have taken steps to make Australia your home

    an Australian resident for tax purposes

    are visiting Australia and for most of that time you are travelling and working in various locations around Australia

    a foreign resident for tax purposes

    are either holidaying in Australia or visiting for less than six months

    a foreign resident for tax purposes

    migrate to Australia and intend to reside here permanently

    an Australian resident for tax purposes

    leave Australia permanently

    treated as a foreign resident for tax purposes from the date of your departure

    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.

    See also:

    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 from 1 July 2017.

    See also:

    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.

    Next steps:

    See also:

    Last modified: 01 Jul 2020QC 33232