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Introduction to
Australia tax planning guide

Whether youโ€™re moving for work, study, or a change of pace, Australia offers a high quality of life, a diverse and welcoming culture, and endless natural beauty.โ€จโ€จ

In this guide, weโ€™ll walk you through everything you need to know about relocating to the Australia from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations. โ€จโ€จ

GTC recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure youโ€™re meeting your tax return obligations.

How you are taxed in Australia
Australia follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
Resident
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Local Income
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Foreign Income
Non-Resident
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Local Income
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Foreign Income
Your resident status in Australia
Youโ€™ll be considered tax resident if you satisfy any of the following criteria:
Physical presence

if you spend more than 182 days in Australia during the tax year period unless you normally reside overseas and have no intention to reside long term in Australia.

Business

Physical presence

Vital interests

Physical presence

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

if you have an Australian domicile unless your permanent abode is overseas.

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Ties

if your ties are located in Mexico and 50% of your income arising in Mexico during the tax year.

Home

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

Nationals

Physical presence & work

Family

Citizen

Resident commune

Visa

Income

Physical presence

if you spend more than 182 days in Australia during the tax year period unless you normally reside overseas and have no intention to reside long term in Australia.

Business

Citizen

Resident population

if you are registered with the Italian resident population.

Physical presence

Physical presence

Hungarian citizen

if you are a citizen of Hungary unless you have no permanent home in Hungary during the tax year.

Domicile

if you have an Australian domicile unless your permanent abode is overseas.

Vital interests

Spanish nationals

if you are a Spain national who relocated to a tax haven less than five years ago.

Working

Home

EEA citizen

if you are an EEA citizen and you are present in Hungary on more than 182 days during the tax year.

National

National

Visa

Physical presence & work

Family

Resident commune

Personal income tax rate in Australia
Residents are subject to progressive tax rates and the highest rate of tax levied on employment income and self employment income is 45%.
Residents are not subject to taxation on personal income.
Global comparison
World highest
World lowest
Denmark
42
56
%
Australia
42
45
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Australia
42
45
%
UAE
42
0
%
Global comparison
World highest
World lowest
Denmark
42
56
%
Australia
42
45
%
UAE
42
0
%
Special tax regime in Australia

Providing that you are considered temporary resident, foreign incomes and gains will be exempt from taxation in Australia.

* Australia can be a very tax efficient place to live for expats & nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Tax cap
ยฃ200,000 per tax year.
Foreign income
Exempt from Australian taxation.
Flat tax rate
Flat tax charge
Earned Income
Taxable income
Business profits
Special tax status
Must hold temporary non-resident status.
Special tax status
Applied for 15 years.
Other personal taxes in Australia
Residents may be subject to the following personal taxes:
Asset tax
Tax on property and share sales
Wealth tax
Tax on value of owned assets
Death tax
Tax on assets passed to heirs
Social tax
Tax to contribute to state welfare
* It is recommended that you review your affairs and structure accordingly so that you do not end up creating an unexpected tax charge and paying more tax than necessary.
Double taxation agreements in Australia

If you receive incomes overseas while you are living in Australia, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.

Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure youโ€™re not taxed twice and even better, ensure your income is tax free. ย 

At present, Australia has 55 double taxation agreements signed.

Global comparison
World highest
World lowest
UAE
42
140
Australia
0
55
Bahamas
42
0
Global comparison
World highest
World lowest
UAE
42
140
Australia
0
55
Bahamas
42
0
Tax obligations in Australia
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What is the deadline to file tax returns and settle tax liabilities?
The tax year starts on 1 July and ends on 30 June.
What is the deadline to file tax returns and settle tax liabilities?
The deadline to file your tax return and settle the tax liability is 31 October following the end of the tax year.
Do you need to make advance payments of tax?
You may be required to make advance payments of tax towards future tax years on top of settling the current tax year liability.