Australia

Quick Facts

• Tax residency determination: Australia uses four separate tests — resides, domicile, 183-day, and superannuation — to determine if you're a tax resident
• 183-day rule: If you're in Australia for more than half the income year (183+ days), you may be treated as resident UNLESS your usual place of abode is overseas and you don't intend to live in Australia permanently
• What counts as "day": Presence on any part of a day typically counts toward the day count
• Consequence: Tax residents are liable on worldwide income; nonresidents taxed only on Australian-source income
• Key difference: Australia's income year runs 1 July – 30 June (not calendar year)

Residency Rules Explained

• Your usual place of abode is overseas, AND
• You don't intend to live in Australia

Visa vs Tax Residency

Key Dates

• Income year: 1 July – 30 June (different from other countries' calendar years)
• Residency change timing: Effective date depends on when you establish or sever significant ties and satisfy the residency tests
• Tax filing deadline: Typically 31 October following the income year

Common Pitfalls

• Assuming 183+ days automatically triggers residency without checking the "usual abode overseas" exception
• Retaining strong Australian ties (home, family, bank accounts) while abroad — these maintain residency under the domicile test
• Misunderstanding how the four tests interact (resides, domicile, 183-day, superannuation)
• Not understanding the temporary resident concession for foreign income
• Forgetting Australia's income year is 1 July – 30 June, not calendar year
• Failing to adjust thresholds and tax treatment when arriving or departing mid-year

Before You Reach 183 Days

• Track entry/exit dates with DayVA if approaching 183 days in the income year
• Document your ties in Australia (or lack thereof) — home, family, employment, community
• Understand whether you qualify for temporary resident concessions on foreign income
• If departing, formally sever ties to establish overseas residency
• Assess your domicile status — this is more relevant in Australia than many other countries
• Understand which income year applies (1 July – 30 June) when calculating your 183 days

Offshore & Expat Considerations

• Foreign income reporting: Residents must declare all foreign income (subject to foreign tax credits). Nonresidents report only Australian-source income
• Temporary resident relief: Some visa holders can exclude foreign-source income from Australian taxation. Check if you qualify — this can be substantial savings
• Australian real property withholding: Foreign residents selling Australian property are subject to withholding rules and may lose the main residence exemption
• Capital gains on departure: When you cease Australian tax residency, you may trigger deemed capital gains tax events on assets. Plan exits carefully
• Domicile relevance: Unlike most countries, Australia's domicile concept is particularly important. Your domicile (permanent home in law) can make you resident even without meeting other tests
• Double taxation treaties: Australia has treaties; tie-breaker rules (permanent home, center of vital interests, habitual abode) apply when both countries claim residency
• Financial account reporting: Australian institutions report foreign tax residents' accounts to authorities under global standards (FATCA, CRS)