• 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.

    The rules we use are not the same as those used by the Department of Immigration and Border Protection. For example, you can be an Australian resident for tax purposes without being an Australian citizen or permanent resident. Alternatively, although you may have been issued a visa to enter Australia, this does not mean you are automatically an Australian resident for taxation purposes.

    Next steps:

    On this page:

    Common situations

    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 (see factsheet)

    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 (see factsheet)

    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

    Note: In some cases tax residency will also depend on whether the country you are going to or coming from has a tax treaty with Australia.

    Tax implications of residency

    If you're a foreign resident for tax purposes:

    • You declare on your tax return any income you earned in Australia, including employment income, rental income, Australian pensions and annuities, and capital gains on Australian assets. Don't declare income from outside Australia on your Australian tax return.

    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: 22 Dec 2016QC 33232