ato logo
Search Suggestion:

Tax-free threshold if you're leaving Australia to live overseas

If you're leaving Australia to live overseas, find out about the tax-free threshold and how it applies to you.

Last updated 26 June 2023

If you're 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 're 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).

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

Example – part-year resident tax-free threshold

Britney left Australia permanently with the intention to reside overseas on 22 December 2021. She is entitled to six months (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 individual income tax rates following from then on.

End of example

For help to work out your residency, see Your tax residency.

If you had more than one job in the year, you can find more information at Income from more than one job.