Whether you’re moving for work, study, or a change of pace, Australia offers a high quality of life, a diverse and welcoming culture, and endless natural beauty.
In this guide, we’ll walk you through everything you need to know about relocating to the Australia from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Australia follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 182 days in Australia during the tax year period unless you normally reside overseas and have no intention to reside long term in Australia.
if you have an Australian domicile unless your permanent abode is overseas.
Providing that you are considered temporary resident, foreign incomes and gains will be exempt from taxation in Australia. Australia can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Exempt from Australian taxation.
Must hold temporary non-resident status.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Australia, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Australia has 55 double taxation agreements signed.
