Are you still an Australian tax resident?

Not necessarily. Getting on a plane doesn't end your Australian tax residency, and being a citizen doesn't keep it. The ATO weighs up your whole life, and the answer can go either way.

The short version

There are four residency tests. If you pass any one, you're an Australian resident for tax purposes [1].
The main one is the "resides" test. No single factor decides it: presence, intention, family, work, assets and lifestyle all count [2].
The domicile test catches many expats. You stay resident unless you have a permanent place of abode overseas [3].
Foreign residents pay tax only on Australian-sourced income, at 30% from the first dollar up to A$135,000 in 2025–26, with no tax-free threshold and no Medicare levy [4].
Long-promised simpler residency rules have not been legislated. The old tests still apply [5].

Why it matters so much

Your residency status is the switch that sets most of your Australian tax picture. As a resident, you're taxed in Australia on your worldwide income, including your overseas salary, though you can usually claim a credit for foreign tax paid. As a foreign resident, Australia generally taxes only income that comes from here, like rent from an investment property, Australian interest and dividends, and capital gains on Australian real estate.

So a teacher in Dubai earning a tax-free salary might pay nothing there and still owe Australian tax if the ATO treats them as resident. That's the scenario that catches people out.

The four tests, in plain English

Test	What it asks	Who it usually affects
Resides test	Do you live in Australia, in the ordinary sense of the word?	Everyone; it's checked first [1]
Domicile test	Is Australia your legal home, and have you set up a permanent place of abode overseas?	Australians who move abroad [3]
183-day test	Were you in Australia for more than half the income year?	People who come back for long stretches [1]
Commonwealth super test	Are you a Commonwealth public servant posted overseas in CSS or PSS?	Australian Government staff only [1]

The resides test

The ATO looks at physical presence, intention and purpose, family, business or employment ties, where your assets are, and your social and living arrangements. It is explicit that no single factor is likely to be decisive [2]. It also says that keeping a house isn't the same as living in it, but where you pay bills, hold accounts, keep insurance, store your car and your furniture, where your kids go to school and where your mail goes all paint the picture [2].

The ATO's current ruling on individual residency, TR 2023/1, keeps a rule of thumb that an overseas stay of around two years is generally treated as substantial when deciding where your permanent home is [5]. It's a guide, not a bright line.

The domicile test

This is the one most expats need to think about. Your domicile, your legal home, generally stays Australian unless you permanently migrate. You remain a resident under this test unless the ATO is satisfied your permanent place of abode is outside Australia [3]. The factors include:

how long you intend to stay overseas, and how long you actually do
whether you've set up an established home overseas
whether you've kept a home in Australia
your family and financial ties [3]

One group to watch: digital nomads. If you move from country to country with no fixed home abroad, the ATO says you're not considered to have a permanent place of abode overseas, so you'll likely stay an Australian resident [3].

The 183-day test

This mostly matters on the way back in, or if you split your year. Spend more than half the income year in Australia and you're a resident, unless your usual place of abode is overseas and you don't intend to live here [1].

Two people, two answers

These are illustrations, not rulings.

Sam, a nurse in London. Sam signs a two-year NHS contract, rents a flat in Hackney, sells the car, rents out the Brisbane unit through an agent, and comes home for three weeks at Christmas. She has an established home overseas, a stay of substantial length and fewer ties here. Sam is likely to be a foreign resident.

Jordan, a consultant on the move. Jordan leaves Melbourne with a backpack and a laptop, spends three months each in Lisbon, Bali, Mexico City and Seoul, and keeps his partner, his apartment and his gym membership at home. No fixed abode overseas, strong ties here. Jordan is almost certainly still an Australian resident.

What changes if you become a foreign resident

Item	Resident	Foreign resident
Overseas salary	Taxed in Australia, with foreign tax credits	Not taxed in Australia
Tax-free threshold	Yes (pro-rated in the year you leave) [6]	No; 30% from the first dollar [4]
Medicare levy	Yes	No [4]
Australian bank interest	Taxed at your marginal rate	10% withholding, usually final [7]
Selling your former home	Main residence exemption may apply	Usually no exemption, unless the life events test applies [8]

A few of these deserve a closer look.

The year you leave. You're a part-year resident, and your tax-free threshold is cut. The ATO's formula is A$13,464 plus A$4,736 divided by 12, multiplied by the months you were resident, counting the month you left [6].

Your old home. This is the big one. A foreign resident who sells an Australian home generally can't claim the main residence exemption. The exceptions come from the life events test: you've been a foreign resident for six years or less and, during that time, there was a terminal illness, a death of a spouse or child under 18, or a relationship breakdown settlement [8]. If you plan to sell, timing your sale relative to your residency status can make a very large difference. Get advice first.

Bank interest. Tell your bank you're a foreign resident and give it your overseas address. Otherwise it may withhold at 47% [7].

Dual residency and tax treaties

It's possible to be resident in Australia and somewhere else at the same time. Australia has tax treaties with many countries, and these include tie-breaker rules that decide which country gets first claim on your income, and relief from double tax, usually given by your country of residence [9]. Your new country's own residency rules matter too, so check them as well.

When to talk to a tax adviser

Book someone who handles expat returns if any of these apply:

You're keeping a home in Australia, or your partner or kids are staying behind.
You're moving to a low-tax or no-tax country, such as the UAE.
You'll move often, or have no fixed home overseas.
You own Australian property you might sell while abroad.
You have shares, a business, a trust or a self-managed super fund.
You're not sure whether you're coming back.

Before the meeting, write down your departure date, where you'll live, the length of your contract, what you're keeping in Australia, and your plans for coming home. The ATO also has an online tool to help you work out your residency status, and you can use it as a starting point [1].

A note on proposed changes

Back in the 2021 Budget, the government announced plans for simpler residency rules built around day counts, drawing on Board of Taxation proposals that included a 45-day test for people leaving. As of late 2026, those changes have not been legislated, and the ATO still applies the four tests above [5]. If you read online that "45 days in Australia" now decides it, check the date of the article.

Are you still an Australian tax resident once you move? How the ATO decides