Do Australian Expats have to pay tax in Australia?

This is a common concern amongst many Australian expats, and the answer depends on two key variables, which we’ve outlined below:

• your tax residency status; and
• the source of the income.

Let’s consider the tax residency status first:

If you are treated as a resident of Australia for tax purposes, then in most instances you would be required to pay Australian tax on your globally sourced income even if you’re living overseas and have already paid tax in that country.

If you are treated as a non-resident of Australia for tax purposes, then generally you would not be required to pay Australian income tax on any income whilst you’re living and working overseas.

The next step is the source of the income:

The source of the income earned will dictate whether tax is payable in Australia or not. For example, Taxable Australian Property such as rental income from your investment property would be taxable in Australia, whereas capital gains from the sale of shares on the Australian Stock Market wouldn’t be for non-residents of Australia for tax purposes.

It’s important to consult a tax professional here to determine the right strategies based on your own personal set of circumstances.