Being an Australian resident for tax purposes is not necessarily the same as being an Australian resident for other purposes. Generally, an Australian resident for tax purposes is someone whose usual place of abode is in Australia.
You can work out your tax residency status by passing a ‘resides’ test, meaning that your usual place of abode is in Australia.
Amongst the things that will be taken into account to determine whether you pass the ‘resides’ test are:
Taking a residency test can also help you determine whether you are:
You don’t need to be an Australian citizen or a permanent resident for immigration purposes to be considered a tax resident. And you can also be an Australian citizen and be considered a foreign resident for tax purposes.
The withholding requirements for foreign resident employees are similar to those that apply to Australian workers. However, a foreign resident:
If you’re a working holidaymaker, you’ll usually be considered a foreign resident for tax purposes and taxed at a rate of 15% on the first $45,000 you earn in Australia, with the balance then taxed at ordinary rates.
If you’re a dual resident of both Australia and a foreign country with which Australia has a double tax treaty, a treaty tie-breaker test will be used to work out which country has the right to charge you tax.
If you need any further information in regards to your tax residency, please contact us.
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