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Moving to Australia, changing your visa, or leaving Australia to live overseas can create an important tax question: are you an Australian resident for tax purposes?
The answer isn’t determined by your visa alone.
For Australian tax residency 2026, the Australian Taxation Office (ATO) looks at your overall circumstances, including where you live, your intention and purpose, family and employment connections, assets, and social and living arrangements. Your visa status may be relevant, but it doesn’t automatically make you an Australian tax resident or foreign resident.
Understanding your tax residency is particularly important if you have recently moved to Australia, are planning to leave, or continue earning income from overseas.
No.
Australian immigration status and tax residency are two separate concepts. You can hold a temporary visa and still be an Australian resident for tax purposes. Likewise, having a visa that permits you to stay in Australia doesn’t automatically make you a tax resident.
For example, someone arriving in Perth on a temporary work visa could establish a home, start long-term employment and develop strong personal and financial connections with Australia. These circumstances may support Australian tax residency even though the person doesn’t hold permanent residency.
The ATO considers the facts and circumstances of each individual rather than relying solely on visa status.
If you’re uncertain about your position after moving between countries, an expat tax accountant can help you understand which residency factors may apply to your situation.
The ATO uses several tests to determine whether an individual is an Australian resident for tax purposes.
The first test considers whether you actually reside in Australia according to ordinary concepts.
Factors can include:
No single factor necessarily determines the result. Instead, the ATO considers your circumstances as a whole.
For example, someone who arrives for a long-term job, establishes a home and moves their everyday life to Australia may have stronger indicators of residency than someone visiting for a short assignment.
If the resides test doesn’t establish residency, the domicile test may become relevant.
This generally considers whether your domicile is in Australia and whether your permanent place of abode is outside Australia.
This can be particularly important for Australians moving overseas. The location of your home, family, assets and other ongoing connections may all be relevant to the assessment.
The 183-day test considers whether you’ve been physically present in Australia for more than half of the income year.
However, spending more than 183 days in Australia doesn’t automatically make you an Australian tax resident in every situation. Other conditions relating to your usual place of abode and intentions may also need to be considered.
This is why simply counting the number of days you’ve spent in Australia isn’t always enough.
A separate test applies to certain Australian government employees working at Australian posts overseas, together with eligible spouses and children.
For most migrants, temporary visa holders and people moving between Australia and another country, the other residency tests are more commonly relevant.
Your visa can provide context about your circumstances, but it isn’t the deciding factor.
This applies to people holding:
For instance, a person on a temporary visa may establish their normal home and life in Australia and become an Australian tax resident. On the other hand, someone with a visa allowing a temporary stay may remain a foreign resident depending on their circumstances.
The ATO has confirmed that visa status and tax residency are separate concepts.
Your residency status can affect what income you need to consider in your Australian tax return.
Generally, Australian residents for tax purposes need to declare worldwide income. This can include:
Foreign residents generally have different Australian tax obligations and are generally taxed on Australian-sourced income.
If your residency status has changed and you’re unsure how it affects your individual tax obligations, a Personal Tax Accountant can help you understand the reporting requirements relevant to your circumstances.
Your residency status can change during an income year.
Consider someone who arrives in Perth in September 2026 on a temporary work visa. At first, they may have limited connections with Australia. Several months later, they secure long-term employment, establish a home and move their family to Australia.
Their circumstances are now substantially different.
Rather than assuming that their residency status remained the same throughout the entire year, they may need to determine when their circumstances changed and how that affects their Australian tax obligations.
This can be particularly important when preparing a first Australian tax return after moving to Australia.
Becoming an Australian tax resident can have significant implications for foreign income.
For example, imagine you move to Australia while continuing to receive rental income from an overseas property. If you become an Australian resident for tax purposes, that foreign income may need to be included in your Australian tax return.
Foreign tax already paid may also be relevant. Depending on your circumstances, you may be entitled to a foreign income tax offset, subject to Australian tax rules.
This is why keeping records of overseas income and foreign tax paid is important when moving to Australia.
You should also understand that expat tax deductions depend on the type of expense and the relevant tax rules. A particular expense isn’t automatically deductible simply because you live overseas or hold an expatriate status.
Residency can become particularly important when you own property in Australia or overseas.
For example, someone living overseas but retaining an Australian investment property may continue to have Australian tax obligations relating to rental income and capital gains.
Likewise, someone moving to Australia with an overseas property needs to understand how their residency position interacts with that asset.
If property investments form a significant part of your financial situation, a Property Investment Accountant can help you understand the tax considerations associated with your investments.
For a more specific discussion of overseas property and Australian tax, see our guide to CGT on Foreign Property Australia.
It’s also important not to assume that there is a simple strategy to save on capital gains tax without first considering the ownership structure, residency position, asset type and applicable tax rules.
The same principles apply when leaving Australia.
Moving overseas doesn’t necessarily mean you immediately stop being an Australian tax resident.
The ATO can consider factors such as:
This can become more complicated if you continue to own Australian property, receive Australian income or regularly return to Australia.
If you’re leaving Australia permanently, it’s worth reviewing your residency position rather than assuming your status changes automatically on the day you depart.
Tax residency can become complicated when you have:
If you’re based in Western Australia and need assistance understanding your circumstances, an accountant in Perth with experience in individual and international tax matters can help you assess the relevant factors.
Professional advice can be particularly useful before making major decisions such as selling property, moving permanently overseas or changing how your assets are held.
If you need assistance with your Australian tax obligations, a tax accountant Perth service can also help with tax return preparation and related compliance once your residency position has been assessed.
Your visa status does not automatically determine your Australian tax residency.
For 2026, the key question is whether your overall circumstances satisfy one of Australia’s tax residency tests. Your physical presence, intention, family connections, employment, assets and living arrangements can all be relevant.
If you’re moving to Australia, leaving Australia or experiencing a significant change in your living circumstances, reviewing your tax residency position early can help you understand what income may need to be reported and what tax obligations could apply.
If you’re unsure where you stand, it’s better to get advice before lodging your return than to make assumptions based solely on your visa.
If you need professional assistance with your situation, you can hire a tax accountant to review your circumstances and help you understand your Australian tax obligations.
