FlagSageKey facts
| Tax basis | Residence-based |
|---|---|
| Tax year | Income year (1 July to 30 June) |
| Taxes citizens abroad | Not as a general rule |
| Residence tests recorded | 4 |
| Region | Oceania |
How Australia decides tax residence
Each test is recorded separately with its own ID. Meeting or missing one test does not settle residence on its own.
Resides test
The primary test is whether you reside in Australia according to the ordinary meaning of the word. Factors include physical presence, intention and purpose, family, business or employment ties, the location of assets, and social and living arrangements. If you reside in Australia, the other tests do not need to be applied.
Domicile test
A person is a resident if their domicile, their permanent home in law, is in Australia, unless the Commissioner is satisfied their permanent place of abode is outside Australia. Domicile can be of origin or of choice.
183-day test
A person is a resident under this test if they are actually present in Australia for more than half the income year, continuously or with breaks, unless it is established that their usual place of abode is outside Australia and they have no intention of taking up residence.
Commonwealth superannuation test
Australian Government employees at Australian posts overseas who are contributing members of the CSS or PSS, and their spouses and children under 16, are residents regardless of other factors. The test does not apply to PSSAP members.
Arriving, leaving and part years
Relates to AU-RES-01. If status changes from resident to foreign resident during the income year, the ATO says you are taxed at resident rates with the resident income threshold pro-rated for the months resident. From the date you cease to be resident, foreign-source income need not be returned, and Australian interest, dividends and royalties received afterwards are subject to final withholding tax. The ATO also has separate guidance on capital gains tax for foreign residents.
Reporting duties to check
- Worldwide income for residents. An Australian resident for tax purposes must declare all income earned in Australia and overseas in the tax return. Source
Living base
The right to live in Australia comes from visas granted by the Department of Home Affairs, including permanent visas. The ATO says you can be a tax resident without being a citizen or permanent resident, and you may hold a visa yet not be a tax resident; some visa holders fall into a separate temporary resident category.
How visas, permits and tax residence differ
Citizenship
Citizenship by conferral generally requires permanent residence. Home Affairs states the general residence requirement as living in Australia on a valid visa for 4 years immediately before applying, holding a permanent visa for the last 12 months, and not being absent for more than 12 months in total in those 4 years, including no more than 90 days in the last 12 months. The position on dual citizenship is not stated here.
Questions to take to a professional
- Do my overall circumstances mean I reside in Australia in the ordinary sense?
- If I leave Australia, have I established a permanent place of abode overseas for the domicile test?
- If I spend more than half the income year in Australia, is my usual place of abode elsewhere?
- Am I a temporary resident for tax purposes, and what follows from that?
- What capital gains tax consequences could follow from ceasing to be a resident?
- How would a tax treaty tie-breaker apply if another country also treats me as resident?
- How should I report a year in which my residency status changed?
Official authorities
Sources
- Your tax residency (ATO, last updated 3 June 2026)Official guidance
- Australia: Information on residency for tax purposes (OECD AEOI portal)Official guidance
- Become an Australian citizen (by conferral): Permanent residents (Department of Home Affairs)Official guidance
Guides that mention Australia
Other countries in Oceania
- Countries covered
- Australia
- Sources
- 3 sources listed above
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 8, 2026