How does the ATO decide if I'm an Australian tax resident?

Via four tests -- Resides, Domicile, 183-day, and Commonwealth Superannuation -- and meeting just one of them is enough to make you a tax resident. Spending 183+ days in Australia in an income year creates a presumption of residency, though it can be rebutted if your usual home remains overseas.

What income does residency affect?

If you're an Australian tax resident, the ATO taxes your worldwide income, including foreign salary, dividends and business profits -- not just what you earn in Australia. Foreign income tax offsets can reduce double taxation, but won't always remove the Australian liability entirely.

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Check your Australian tax residency and foreign-income obligations

Check your Australian tax residency status and whether it affects your foreign income -- confirm your situation with the ATO or an accountant.

ATO: foreign and temporary residents

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Your tax obligations in Australia depend on your residency status for tax purposes, not just where your income comes from -- and a specific exemption may apply if you're newly arrived on a temporary visa.

How to do it

First work out your Australian tax residency status. The ATO uses several tests -- including how long you're here and the nature of your stay -- to decide this, and it's the basis everything below depends on.
If you're an Australian tax resident, next check whether temporary-resident tax treatment also applies to you. You're generally a temporary resident for tax purposes if you hold a temporary visa and neither you nor your spouse are Australian residents under the Social Security Act.
If temporary-resident treatment applies, work out what foreign income and assets you actually need to declare. Most of your foreign income -- including certain foreign employment income earned while you're a temporary resident -- and capital gains on property that isn't taxable Australian property generally don't need to be declared; other foreign income still does.
Get a Tax File Number early regardless. You'll need one for employment, bank accounts, and most financial dealings in Australia whether or not the temporary-resident exemption applies to you.

This is general information only -- your own circumstances can change the outcome, so confirm your specific situation with the ATO or a qualified tax professional rather than relying on this alone.

Common mistakes

Assuming all foreign income is covered by temporary-resident treatment -- some foreign employment income and other income types have specific rules, so check what actually applies to your situation
Not checking your spouse's residency status, which can affect your own eligibility
Waiting to apply for a Tax File Number until you need one urgently -- it's a genuinely quick process to start now

Related tasks

If you have significant foreign investment income, it's worth a real conversation with an accountant about how temporary-resident tax status applies to your specific situation before you arrive, not after.

Useful links

ATO: foreign and temporary residents -- check the exact eligibility rules and what income is covered before assuming you qualify.

Frequently asked questions

How does the ATO decide if I'm an Australian tax resident?: Via four tests -- Resides, Domicile, 183-day, and Commonwealth Superannuation -- and meeting just one of them is enough to make you a tax resident. Spending 183+ days in Australia in an income year creates a presumption of residency, though it can be rebutted if your usual home remains overseas.
What income does residency affect?: If you're an Australian tax resident, the ATO taxes your worldwide income, including foreign salary, dividends and business profits -- not just what you earn in Australia. Foreign income tax offsets can reduce double taxation, but won't always remove the Australian liability entirely.