Sources: ATO — Your tax residency · ATO — Residency tests · TR 2023/1 Income tax: residency tests for individuals
Primary question: do you actually reside in Australia? Based on ordinary meaning — dwelling permanently or for a considerable time. Factors include purpose and intention, frequency of presence, and where family and economic ties are. Most Australian expats who have genuinely moved overseas will not satisfy this test.
You are an Australian resident if your domicile is in Australia, unless the ATO is satisfied that your permanent place of abode is outside Australia. Most Australians retain their Australian domicile by origin even when living abroad. Moving between countries, renting rather than owning property, or any intention to return to Australia all work against breaking this test. Simply working overseas for several years is not sufficient.
Present in Australia for 183+ days in the income year — resident unless your usual place of abode is outside Australia and you have no intention of taking up residence here. Primarily relevant for people arriving in Australia.
Applies only to Australian Government employees contributing to the Commonwealth Superannuation Scheme. Unlikely to affect most private sector expats.
If you successfully establish non-resident status, Australian tax applies only to Australian-source income:
Your Australian superannuation fund remains in place while you live overseas — you cannot access it until you meet a condition of release (typically reaching preservation age, currently 60, and retiring, or turning 65). Super fund earnings are taxed at 15% in Australia even for non-residents. The Departing Australia Superannuation Payment (DASP) may be available if you held a temporary visa, but is taxed heavily and is generally not the right choice for Australians who intend to return.
Source: ATO — Superannuation
Assuming that living and working abroad automatically makes you an ATO non-resident. It doesn't. The domicile test requires a genuinely established permanent home outside Australia. Australians who rent out their Australian home, have family remaining in Australia, or move between countries without a fixed habitual home abroad frequently remain Australian tax residents. Get a formal ruling or professional opinion if your residency status is uncertain.
Official ATO resources
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