Australian Resident Taxation Matters

Australian Resident Taxation Matters

It is important to know if you are an Australian resident you need to pay income tax. This is especially important for people who have recently moved here or have been here for 6 months or more of the tax year.

To help people in this position, a guide has been produced by the ATO and it gives details as to when someone becomes an Australian resident. It is just as important to know the law if you are thinking about moving away or have recently left as you may still have income tax to pay. As an Australian resident, it will be your income in the qualifying period that will be taken into account.

Tax Implications of Residency 

If you’re a foreign resident for tax purposes:

• You declare on your tax return any income you earned in Australia, including employment income, rental income, Australian pensions and annuities, and capital gains on Australian assets. Don’t declare foreign income on your Australia tax return.

If you’re an Australian resident for tax purposes:

• You generally have to declare all income you earned both in Australia and internationally on your tax return.
• However, if you have a temporary visa you’re a temporary resident – this means most of your foreign income is not taxed in Australia and you don’t declare it on your Australian tax return. You only declare income you derive in Australia, plus any income you earn from employment performed overseas for short periods while you are a temporary resident of Australia.

For more information please visit:- https://www.ato.gov.au/Individuals/International-tax-for-individuals/Work-out-your-tax-residency or call the office on 1300 788 491