Australia allows its non-resident citizens to pay zero taxes for any foreign income earned. It can either be an income earned from a foreign source or a foreign country. There are many key aspects you need to know related to your non-resident tax return in Australia. Say, for instance, income earned from a foreign rental property is considered non-taxable in Australia. Similarly, income earned in Australia is considered taxable in the country. A perfect example of this would be an employment income earned in Australia.
Quite naturally, the tax obligations involved in the non-resident tax return structure are quite complex. It is imperative to seek expert help and guidance to decipher these non-resident tax returns effectively. We at Palladium Financial Group can elucidate you the various factors related to the non-resident tax return in Australia thus simplifying the entire process for you.
Lodge your non-resident tax return
Our qualified tax agents are adept in solving issues related to the income tax return for non-residents. We will apprise you of your relevant taxing obligations after assessing your current residency status based on ingenious understanding.
A non-resident who earns AUD1 or more in Australia needs to file a return indispensably and
the non-resident tax return due date is 31st October. If you happen to be an NRI, you will also become eligible for an extension if you lodge your non-resident tax return from our tax agent.
Foreign residents aren’t entitled to any form of tax-free threshold, although they pay a higher tax rate than resident taxpayers. Resident Australians again are entitled to a 50% discount on capital gains tax, unlike non-resident Australians.
Regarding the tax rates, it can be said that the tax scale for the year 2019-2020 has already been directed by the government. If you belong to the tax scale of $0-$90000, then the tax levied on this income would be 32.5c for every $1. For income scale 90001 and 180001, the tax levied is 29250+37c and 62550+45c respectively.
Additional Payments
Non-resident Australians are also entitled to certain forms of additional payments. These payments are again incurred by the withholding tax bodies and should be remitted by the payer at the ATO. Besides, lower withholding tax rates will apply if the non-resident is from a nation with a Double Tax Agreement. We’ll help you file non-resident tax returns with these factors in mind.
Completing your non-resident tax filing in Australia is merely impossible without astute professional assistance. Palladium Financial Group is your one-stop solution when it comes to lodging your non-resident tax return Perth. Our tax consultants have sound knowledge in several taxing areas including that of non-resident tax return lodgement. We provide an effective assessment of residential status, payment of taxes levied on foreign-income and identification of potential taxing options etc. Get in touch with us to schedule an appointment and we will be happy to assist you.
In Australia, a non-resident is someone who does not live here permanently and does not intend to stay long-term, but may earn Australian-sourced income.
Residency status affects tax rates and eligibility for concessions.
Yes, if you have Australian-sourced income like wages, rental income, or capital gains from Australian property, you must lodge a non-resident tax return.
Only Australian-sourced income is taxed:
Salary/wages earned in Australia
Rental income from Australian properties
Capital gains from selling Australian assets
Australian investment income (dividends, interest)
No. Non-residents cannot claim the tax-free threshold. This means tax starts on the first dollar earned in Australia.
Non-residents are taxed at higher rates than residents.
There are no low-income offsets or standard tax-free amounts.
If filing yourself, the due date is 31 October each year.
If you use a registered tax agent in Australia, you may get an extension.
Deductions are limited. For example:
Work-related expenses directly linked to Australian income
Investment-related expenses on Australian assets
Many resident concessions, like the capital gains discount, do not apply.
The ATO may apply:
Penalties
Interest on unpaid tax
Compliance audits
Generally, foreign income is not taxed in Australia for non-residents.
Only Australian-sourced income is reportable unless there are specific obligations.
Expert Perth accountants can:
Determine your residency status for tax purposes
Prepare and lodge your non-resident tax return correctly
Minimise tax liability and penalties
Advise on investment income and Australian property tax rules
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