Tax guide
Am I an Australian resident for tax?
For Australian tax, what matters is whether you’re a resident for tax purposes, not whether you’re a citizen. The two usually line up, but not always, and the difference can change your tax a lot.
Residency is not citizenship
The ATO uses its own residency rules, separate from the Department of Home Affairs. That means:
- You can be an Australian resident for tax without being a citizen or permanent resident.
- You can have a visa to be in Australia and still not be a resident for tax.
- An Australian citizen who has moved overseas can be a foreign resident for tax.
The four residency tests
You’re an Australian resident for tax if you meet any one of these:
- Resides test (the main one): you live in Australia in the ordinary sense. The ATO looks at things like how long you’re here, why you’re here, where your family is, your work and business ties, where your assets are, and your social and living arrangements. If you meet this test, you don’t need the others.
- Domicile test: your permanent home is in Australia, unless the ATO is satisfied your permanent place of abode is overseas.
- 183-day test: you’re in Australia for more than half the income year, unless your usual home is overseas and you don’t intend to live here.
- Commonwealth superannuation test: mainly for Australian Government employees working overseas.
How residency changes your tax
| Australian resident | Foreign resident | Working holiday maker | |
|---|---|---|---|
| Tax-free threshold | First $18,200 tax-free | None: taxed from the first dollar | None |
| Starting tax rate | 15% in 2026–27 (16% in 2025–26) | 30% | 15% up to $45,000 |
| Low income tax offset | Up to $700 | No | No |
| Medicare levy | 2% (less on low incomes) | No | Usually no |
| Income taxed | Worldwide income | Australian income only | Australian income |
Temporary residents (most temporary visa holders) generally pay Australian tax only on Australian income and on employment income earned while in Australia, not on most other foreign income.
Common questions
- Does being an Australian citizen make me a resident for tax?
- No. The ATO doesn’t use citizenship or visa rules. A citizen who has moved overseas can be a foreign resident for tax, and someone without citizenship or permanent residency can be an Australian resident for tax.
- I’m on a work visa and live in Australia. Am I a resident for tax?
- Usually yes, if you live here in the ordinary sense: you have a home, a job and your life is based here. Residents get the $18,200 tax-free threshold and resident tax rates.
- I moved overseas but still own a house in Australia. Am I still a resident?
- Not necessarily. Owning property here is one factor, but the ATO looks at the whole picture: where you live and work, where your family is, how long you’re away and whether you intend to come back. Many people working overseas long term become foreign residents for tax.
- How are working holiday makers taxed?
- If you’re on a 417 or 462 visa, your Australian income is taxed at working holiday maker rates (15% up to $45,000) whether you’re a resident or not.
General information only. Residency depends on your full circumstances: check with the ATO or a registered tax agent. Source checked 14 October 2026.