It sounds like such a simple question but determining whether you’re a resident of Australia for tax purposes of can be frustratingly difficult…and depending on the answer, the way you are taxed can change dramatically!

Why does it matter?

The law treats residents and non-residents differently. Australian residents are generally taxed on all of their worldwide income. Non-residents are taxed only on income sourced in Australia. The marginal tax rates are different for income below $37,000, and the effective tax rates are much higher for non-residents.

If you think you need help to work out if you are resident or not, H&R Block can help you. Call us on 13 23 25.

Australian residents

If you are an Australian resident and you have to lodge a tax return, you need to declare your worldwide income.

Non-residents

If you are a non-resident, you only need to lodge a tax return if you have income that is taxable in Australia.

Tourists working in Australia only for a short time are generally not considered residents, but still need to lodge a tax return if they have income from an Australian source. If your status has changed during the tax year from resident to non-resident, your changed status is taken into account by a pro-rata adjustment.

Resident tax rates

Download the 2016-17 tax rates applied to residents for tax purposes, and to non-residents. Note: These rates include the Temporary Budget Repair Levy but do not include the Medicare levy.

Advantages and disadvantages

Non-residents do not pay the Medicare levy (and so cannot claim Medicare benefits), and will have 10% of any interest earned from Australian bank accounts withheld for tax. The interest is not included in assessable income, but you will need to provide an overseas address otherwise tax will be withheld at a much higher rate.

Download the differences in tax laws for residents and non residents.

If you think you need help to work out if you are resident or not, H&R Block can help you. Call us on 13 23 25.

Calculate your tax refund

Calculate the tax refund you could receive after tax deductions with H&R Block's easy-to-use, accurate tax refund calculator.

 

June 2016

Book a tax return appointment

If you think you need help to work out if you are resident or not, H&R Block can help you. Find your nearest H&R Block office and book an appointment.

Book now

Calculate your tax refund today

Calculate the tax refund you could receive after tax deductions with H&R Block's easy-to-use, accurate income tax calculator.

Calculate now

Book a tax return appointment

If you think you need help to work out if you are resident or not, H&R Block can help you. Find your nearest H&R Block office and book an appointment.

Book now

Calculate your tax refund today

Calculate the tax refund you could receive after tax deductions with H&R Block's easy-to-use, accurate income tax calculator.

Calculate now