Are you An Australian Resident For Tax Purposes - Blog by Immigration Agent In Sydney

Visa holders while in Australia would need to work out their tax situation. For those who are working in Australia this is particularly true. you would need to find out if you are an Australian or foreign resident for tax purposes, To understand your tax situation. Most people who come to Australia are not Australian residents for a working holiday or visit. This includes people on 417 or 462 visas (backpackers). This is because most backpackers don't intend to stay in Australia, consistent with their visa requirements. while working some of the time They only intend to have a holiday.

Residency Test:

You first need to work out To understand your tax situation if you are an Australian or foreign resident for tax purposes.
As per the Department of Home Affairs (DoHA)The meaning of resident for taxation purpose is different from that , That is, without being an Australian citizen or permanent resident you can be an Australian resident for tax purposes. 

To determine residency status Some of the factors includes:

• Family and business or employment ties
• Social and living arrangements
• Intention or purpose of presence
• Maintenance and location of assets

 If you are a resident for tax purposes, ATO has a calculator which can help you determine.

A visa holder is considered to be an Australian resident for tax purposes,some common scenarios where :

•  intend to live in Australia and Migrate permanently 
• International students enrolled in a course that is more than six months long. 
• have taken steps to make Australia your home and Living and working in one location. 

Usually, you are considered to be a foreign resident if you are:

• Visiting Australia and you are travelling and working in various locations around Australia
• Visiting Australia for less than 6 months

Resides Test :

Reside test means The primary test of tax residency. you don’t need to apply any of the other residency tests and you are considered an Australian resident for tax purposes, If you reside in Australia.   

To determine residency status some of the factors are:

•  intention and purpose
• business or employment ties
• social and living arrangements
• physical presence
• family
• maintenance and location of assets

If you don’t satisfy the ‘resides test’,  if you satisfy one of three statutory tests you’ll still be considered an Australian resident .

Domicile Test :

If your domicile (broadly, the place that is your permanent home) is in Australia, You’re an Australian resident. unless your permanent place of abode is outside Australia we are satisfied with that.

A domicile is a place be your permanent home considered to by law. For example, it may be a domicile by choice (where you have changed your home with the intent of making it permanent) or by origin (where you were born) 

A permanent place of abode can be contrasted with a temporary or transitory place of abode and  should have a degree of permanence.

183 day Test :

Individuals arriving in Australia,This test only applies to them.  If you’re actually present in Australia for more than half the income year, You will be a resident under this test, whether continuously or with breaks. 

You may be said to have a constructive residence in Australia, unless you have no intention of taking up residence here and it can be established that your usual place of abode is outside Australia.  This test will not generally apply regardless of the number of days you spend overseas, If you have already taken up residence in Australia. 

The Commonwealth superannuation test : 

This test applies to who are members of the CSS or PSS schemes and to Australian Government employees working at Australian posts overseas. To members of the PSSAP scheme this does not apply. You and your spouse and children under 16 are considered to be a resident of Australia in this case,regardless of any other factors.The Immigration Agent in Sydney will guide you for this visa in detail.