Doing business in Australia - what you need to know


Foreign residents are taxed in Australia on their Australian sourced income. This introduction explains how income from Australian business activities is treated. If you are earning income from passive investments in Australia (such as securities and rental properties) or interest and royalties, refer to Investing in Australia - what you need to know.

If you are a foreign-resident entity that receives income sourced in Australia, you must lodge an Australian tax return and pay tax on that income. However, you do not need to lodge a tax return if the only income you received consists of:

  • interest, unfranked dividends or royalties from which withholding tax has been withheld by the payer
  • fully franked dividends.
Further Information

To work out whether your entity is an Australian resident for tax purposes, refer to Residency requirements for companies and trusts.

If you are a sole trader, refer to Residency - what you need to know.

End of further information
    Last modified: 09 Aug 2012QC 18324