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  • Tax-free threshold if you are leaving Australia with the intention to reside overseas

    Within this publication foreign resident is the same as non-resident.

    If you are leaving Australia with the intention to reside overseas, your tax-free threshold for the year will be lower than the threshold available to most taxpayers who are Australian residents for the full year.

    You are entitled to a tax-free threshold amount of $13,464 plus ($4,736 divided by 12, multiplied by the number of months you were an Australian resident for tax purposes, counting the month you left).

    Example

    Britney left Australia permanently with the intention to reside overseas on 22 December 2018. She is entitled to six months, that is, from July to December, of the tax-free threshold in the financial year. Her tax-free threshold is:

    • $13,464 + [($4,736÷12)×6]

    Britney would pay no tax on her first $15,832 of taxable income. She enters the 19% tax bracket after that, and will have the usual marginal rates following from then on.

    End of example

    See also:

    You can only claim the tax-free threshold while you are an Australian resident.

      Last modified: 27 Jun 2019QC 17384