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How to be an Australian Tax resident for tax purposes when you are new to Australia.

Tax Residency

Why is your status as an Australian tax Resident make the difference when you are lodging your tax return?

Why do non tax residents get taxed on Australian Sourced income?

What are the tax rates for non-residents of Australia?

What is an Australian resident for tax purposes?

The good part of the Australian Tax Law is that you don’t need a Working holiday VISA or any other type permanent residency to be classes as an Australian for tax purposes.

You can have a VISA to enter Australia and still be considered as an Australian for tax purposes.

You do not have to be an Australian resident or an Australian Citizen to be considered to be Australian for tax purposes.

The residency Test.

The resides test means you can still be an Australian for tax purposes if you are physically present in Australia, you have family in Australia, you have either business or employment ties, you maintain Australian Assets, your living arrangements can also play an important role in being Australian for tax purposes.

If you do not pass any of the above you need to follow the domicile test, the domicile test states that if your permanent place of abode is outside of Australia, as in your permanent home by law is outside of Australia, if you are transitioning between places of abode you may need to suffice the 183 day test.

183 day Test

If you have an intention of making Australia your home and have lived for 183 days on or off in a financial year you are said to be an Australian for tax resident purposes, this effectively means that you have access to the tax free thresholds that other working Australians have and that is why most, if it is determined or established that your usual place of abode is outside Australia you will not be an Australian for tax purposes.

Foreign residents who have worked in Australia or you have rental income, or have an Australian pension or you have a capital gain via any assets must declare and lodge a tax return, foreign residents do not have access to the tax free thresholds that other Australians have, as a non-resident you not have access to Medicare so you do not have to pay for the Medicare Levy, as a non-resident if you have an Australian property that you sell, you will need to include your capital gain in your tax return at the time you sign the contract, not the time you receive the money.

As an Australian tax resident for tax purposes you will need to declare all your income world wide

What tax does a Working Holiday VISA pay?

If you enter Australia on VISA 417 or 462 you will have fixed rates of tax, please tell your tax agent if you are on these VISAS.

DUAL Residency, what is it?

If you an Australian resident for tax purposes however have assets overseas or have worked overseas, if that country you have these items in has a double tax treaty with Australia, you will receive a credit in your Australian income if you have paid tax in that country, remember there is caps hence why we always recommend to receive tax planning advise book an appointment here.

Will my tax back affect my tax rebate or tax refund if I change my residency status?

Yes your refund will be determined by the above factors.

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