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Do I still have to pay tax in Australia if I move abroad?

When I move abroad from Australia, am I still required to pay taxes in Australia?

Watch: Do I still have to pay tax in Australia if I move abroad?

Do I still have to pay tax in Australia if I move abroad?

Yes, you still have to pay taxes in Australia if you move abroad. The taxes you pay will depend on your tax residency status and personal circumstances.  

If you move abroad and remain an Australian resident, you will still pay tax in Australia on your worldwide income. However, the Australian tax system allows foreign income tax credits for taxes you've paid in other countries, and Australia has a wide range of double tax treaties to ensure you avoid double taxation.  

If you move abroad and become non-resident, you may still have to pay tax in Australia if you have Australian-sourced income. For example, you might rent out your Australian property if you are working abroad. In this case, you are earning Australian-sourced rent and will be required to pay tax in Australia. Additionally, if you earn interest on money in an Australian bank account or receive dividends from Australian shares, you may have to pay Australian non-resident withholding tax on this income. 

Capital gains tax is also an important tax planning point for Australian expats. When you move abroad, Australia continues to apply capital gains tax on any taxable Australian property. For example, if you have an Australian investment property, this will continue to be subject to Australian capital gains tax.  

If you happen to break Australian tax residency, this is where the Australian capital gains tax aspect becomes interesting. Australia has rules where an individual can choose whether to pay capital gains tax on a deemed basis on assets which are non-taxable Australian property – for example, shares you hold on the Australian Stock Exchange

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Last updated: 18 November 2024 at 13:44