Frequently asked questions

What if I only arrived in Australia halfway through the tax year?
If you came into the country halfway through a financial year, and met the basic residency requirements (above) it generally means you will be regarded as being a resident by the Tax Office. This also means you will be taxed at resident rates for the tax year. Because you were a 'non-resident' for part of the year, you won't be taxed on an entire year of earnings, and the 'tax free threshold' will be reduced to a pro-rata tax-free threshold for the number of months you are a resident.

What if I was born in Australia, but I have been living abroad for a couple of years, and I have just arrived back?
Depending on the time you spent abroad, if you've lived in another country as an income earning, tax-paying resident of that country, then you generally aren't regarded as being an Australian resident for tax purposes, and therefore don't need to pay tax in Australia - unless you have Australian investments.

OK, but do I need to lodge returns for any income I have earned in Australia over the years I have been away?
Possibly – but it does depend on your particular circumstances. If you are living overseas and are regarded by the Tax Office as a non-resident, and have no investments earning money in Australia, then, generally speaking, you do not have to lodge a return. Similarly, you will not need to lodge an income tax return if the only Australian-sourced income you receive is interest, royalties or dividends that have had non-resident withhold tax withheld from it.

To find out more about Australian sourced investments such as interest, dividends, property or capital gains, please read 'Investing in Australia'.

I live abroad - do I need to lodge returns for Australia?
If you are a resident for tax purposes, you must lodge a return. From the date you cease to be a resident for tax purposes, there is no need for you to lodge a return, or to notify the Tax Office of your foreign source income.  See 'Working Overseas' and 'Lodging a return from overseas' to find out more about this.

I'm a working holiday maker - do I need to lodge a tax return before I leave the country?
Generally, working holiday makers visit Australia for less than six months, and so are not considered Australian residents for tax purposes. However, if you did any work, and were paid any salary or wages during your time in Australia, you'll have to lodge a return.  If you are leaving the country before the end of the tax year, and would like to lodge an early return, and claim back superannuation contributions, find out more about what you'll need to do here.

OK, I've lodged my return... now what?
You will often hear people talking about 'owing' tax or 'getting tax back' – If you didn't pay enough tax while you were working, you will have to pay more tax. If too much tax was withheld from your pay, you will get a refund.

To find out more about Australian tax, your rights and obligations, read  How tax works or Tax and You; Your rights and obligations'.

Last reviewed 9/08/2012