Expat taxes in AustraliaPosted: June 16th, 2014 Darling Harbour Sydney
An individual is subject to a residence test in determining if he or she is Australian resident for tax purposes. Generally, that entails having either always lived in Australia; having moved to Australia and now living there permanently; or having been in Australia continuously for 183 days or more in a fiscal year.
However, if the test is inconclusive, the intention or purpose of a person’s presence in Australia can be taken into account, as can family and business/employment ties, the maintenance and location of assets, and social and living arrangements.
Liability to tax is determined on a year-by-year basis. Events after the year of income may assist in determining an individual's residency status.
Resident individuals are taxed on their worldwide income.
Non-residents are taxed on their Australian income that would be taxable in Australia. This excludes any income from which non-resident withholding tax has already been deducted. Examples of income that may be subject to non-resident withholding tax are bank interest, royalties and unfranked dividends. Capital gains are not subject to a separate tax – they form part of taxable income.
Resident and non-resident taxpayers pay tax at different rates, with the latter paying slightly more, as follows:
0 - AUD6,000 0%
AUD6,001 - AUD37,000 15% for each AUD1 over AUD6,000
AUD37,001 - AUD80,000 AUD4,650 plus 30% for each AUD1 over AUD37,000
AUD80,001 - AUD180,000 AUD17,550 plus 37% for each AUD1 over AUD80,000
AUD180,001 and over AUD54,550 plus 45% for each AUD1 over AUD180,000
0 - AUD37,000 29% for each AUD1;
AUD37,001 - AUD80,000 AUD10,730 plus 30% for each AUD1 over AUD37,000
AUD80,001 - AUD180,000 AUD23,630 plus 37% for each AUD1 over AUD80,000
AUD180,001 and over AUD60,630 plus 45% for each AUD1 over AUD180,000