Residency for tax purposes
Earning Australian sourced income while temporarily staying in Australia?
Residency tests used by the Tax Office to determine residency status for tax purposes vary to residency tests used by other Australian Government agencies.
- It is important to determine whether you are a resident for tax purposes as this impacts the treatment of Australian income received whilst in Australia.
- Generally, you are considered to be a resident for tax purposes if you:
- Have always lived in Australia or have come to Australia to live;
- Have been in Australia for more than half of the income year (unless your usual home is overseas and you do not intend to repatriate to Australia); or
- Are an overseas student enrolled in a course of study of more than six months duration.
- Being an Australian resident allows the taxpayer access to benefits such as the tax-free threshold and lower tax rates.
- To assist in determining residency for tax purposes, the Tax Office has made available a tool which can be accessed here.
- For more information, click here.
Residency status is determined depending on your circumstances and Taxpayers cannot choose whether they are or are not a resident for tax purposes. Contact us if you require any clarification or advice.
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