This page is for foreign residents who source an income in Australia – you will find information on the income you must report in your annual Australian tax return.
See also:
- Work out your residency status for tax purposes to see if you are considered a foreign resident
As a foreign resident, you must lodge a tax return in Australia. You must pay tax on all Australian-sourced income, except for income that has already been correctly taxed (such as interest, unfranked dividends and royalties).
Australia has tax treaties with other countries and this may affect the amount of tax you need to pay. Ensure your Australian financial institutions have your updated overseas address and residency status so they deduct the correct amount of tax. This will reduce follow-up actions by Australia or a treaty country when discrepancies are found.
Income type |
How tax applies |
|---|---|
Australian pensions and annuities |
You must include Australian pensions and annuities you receive in your Australian tax return, unless an exemption is available under Australian tax law or an applicable treaty |
Australian employment income |
Working in Australia – what you need to know explains how to engage in the tax system if you are taking up work in Australia |
Australian investment income |
Investing in Australia – what you need to know explains how to treat income from passive investments in Australia such as securities and rental properties, as well as interest and royalties |
Interest, unfranked dividends and royalties |
You do not need to include this income in your Australian tax return if tax has been correctly withheld – refer to Investing in Australia – what you need to know |
Franked dividends |
Franked dividends you receive are exempt from Australian income and withholding taxes – refer to Investing in Australia – what you need to know |
Rental income |
Investing in Australian property outlines the way tax applies to rental income you receive from a property in Australia |
Australian business income |
Doing business in Australia – what you need to know explains how tax applies to income you receive from Australian business activities you conduct |
Income from exports of goods and services to Australia that is defined as Australian income |
You must include this income in your Australian tax return and pay tax on the amount you receive unless an exemption is available under an applicable treaty – refer to Doing business in Australia – what you need to know |
Income from:
|
Foreign resident withholding tax is withheld by the payer. You need to report this in your Australian tax return – refer to Foreign resident withholding – who it affects |
Capital gains on disposal of Australian assets |
Generally, you must include capital gains you make on assets that are considered taxable Australian property in your Australian tax return and pay tax on that amount – refer to Capital gains in Australia |