Navigating the complexities of tax residency in Australia can be challenging.
At I DO TAX ACCOUNTANTS, we aim to simplify this process for you. Here’s a comprehensive guide to understanding the Australian residency tests for tax purposes.
The Resides Test
The primary test for determining residency is the Resides Test. This test considers whether you reside in Australia based on your physical presence and behavior in the country. For example, if you have moved to Australia for a job, have a house, and your family lives with you, you are likely to be considered a resident under this test.
The Domicile Test
You are considered an Australian resident if your domicile (permanent home) is in Australia, unless your permanent place of abode is outside Australia. For instance, if you were born in Australia and have an Australian domicile but moved overseas for work, you would still be considered a resident if you maintain strong ties to Australia.
The 183-Day Test
This test applies if you are present in Australia for more than half of the income year, whether continuously or with breaks. For example, if you are a foreign national on a working holiday visa and stay in Australia for more than 183 days in the income year, you would be considered a resident for tax purposes.
The Commonwealth Superannuation Test
This test applies to Australian Government employees working overseas who are members of certain superannuation schemes. If this is the case, you and your family are considered residents of Australia regardless of other factors.
Why Choose I DO TAX ACCOUNTANTS?
At I DO TAX ACCOUNTANTS, we are committed to providing expert tax advice and services. Our team, led by Badi Ceren and Michael Harrison, is dedicated to helping you navigate the complexities of tax residency and ensuring compliance with Australian tax laws. We offer personalised services to meet your unique needs.
For more information or to schedule a consultation, please contact us at:
- Phone: (03) 8594 1811 or 1800 955 811
- Email: info@idotax.com.au
- Address: 295 Victoria Street, Abbotsford VIC 3067
- Correspondence Address: PO Box 1390, Collingwood, VIC 3066