Residency Status

RESIDENCY STATUS

To start with your tax return, you are required to work out at the beginning if you are an Australian or foreign resident for tax purposes.

ATO procedures are Not the same procedures as the Department of Immigration and Border Protection (Department of Home Affairs). That means that :

– A person can be an Australian resident for tax purposes and at the same time not an Australian citizen or permanent resident
– A person may have a visa to be in Australia, but for tax purposes not an Australian resident.

If a person is a foreign resident for tax purposes, this person is required to declare on his tax return any income earned in Australia including rental income, employment income, Australian pensions and capital gains on Australian assets.

Taxpayers who have a Higher Education Loan Program (HELP) or Trade Support Loan (TSL) debt and non-residents for tax purposes are required to declare their worldwide income or lodge a non-lodgment form.

Australian residents for tax purposes are required to declare all income earned both in Australia and internationally on their Australian tax returns.

Temporary residents holding temporary visas are required to declare only income derived in Australia, in addition to any income earned from employment performed overseas for short periods while being a temporary resident of Australia.

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