It is not uncommon for Australian citizens to leave Australia to advance their career goals by exploring job prospects in the overseas market.  Unless certain criteria are satisfied you remain an Australian tax resident.

Tax Obligations while working abroad

The issue of residency is largely a question of fact and degree. A broad range of factors are considered, including but not limited to:

  • Intended or actual length of stay overseas
  • The duration and continuity of presence in the overseas country
  • Any intention either to return to Australia at some definite point in time or to travel to another country. Whether a home has been established outside Australia
  • The abandonment of any residence or place of abode the individual may have had in Australia; and
  • The durability of the person’s association with a place outside Australia.

As an Australian tax resident working abroad you will be taxed on your worldwide income from all sources, unless a double taxation treaty applies.  For example, the Australia and United States Double Tax Treaty offers reduced tax withholding rates and limits which country can tax an individual for various types of income.

Depending on your intentions there are measures which can be taken before and after you leave Australia to ensure that you are no longer considered an Australian tax resident.

If you require further information, advice or assistance please contact our team of lawyers at The Quinn Group on (02) 9223 9166 or submit an online enquiry form today.