Residency Status for Tax Purposes

Your residency status for tax purposes is vital because it helps determine your accountability to pay Australian income tax.

If you have a visa issued by the Department of Immigration and Border Protection, your entry permit may have some position to you being a resident. This does not mean you are automatically an Australian resident for taxation purposes..

The ATO published Work out your tax placement explaining when someone coming to Australia will be treated as an Australian resident for taxation purposes if you either:

  • recently arrived in Australia
  • have been or will have been in Australia for more than 6 months of this income year.

Residency status – leaving Australia

If you have been living in Australia, and have lately left Australia, or intend to leave Australia soon, you should use the Determination of residency status – leaving Australia helps decide your liability to pay Australian personal tax on your income.

Under some tax treaties, if a person or entity is measured an Australian resident for income tax purposes they may be allowed to a reduction in, or exemption from, withholding tax on certain classes of their foreign source income. If this applies to you, you should contact the tax authorities in the country where the income is derived to ask how to apply for the reduction or exemption and what documents you will need to provide with your application.

Similarly, authorities from other countries may need you to provide evidence that you are covered by a bilateral superannuation agreement and thus exempt from making superannuation (or equivalent) contributions under the legislation of the other country. This indication will be in the form of a Certificate of coverage and is taken as proof by other countries that the employer or employee is subject to Australia’s superannuation guarantee legislation and will stay so while the employee is on secondment in the other country.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at