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mau74(Initiate)Initiate
9 Sept 2021

Greetings,

The ATO website seems clear: if I leave Australia permanently I become non resident for tax purposes on the day I leave.

While the situation is clear in Australia, the situation is very different in Italy, where returning citizens have to wait months before re-acquiring the residency (also the one for tax purposes). Given the grey period (for tax purposes) between leaving Australia and obtaining the residency in Italy, I have the following question: for what Australia is concerned, am I going to become non-resident on the day I leave the country in any case or there are excemptions to this rule?

If this is the case and Italy won't recognise my residency for a couple of months, I would be non-resident everywhere for some time, which sounds weird.

Thanks!

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Chantelle ATO(Community Support)Community Support
10 Sept 2021

Hi @mau74

That's correct - if you leave Australia permanently, you'll be treated as a foreign resident for tax purposes from the date you depart Australia.

When you return to Italy, you may need to speak to them regarding your residency status for tax purposes.

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Most helpful reply

Chantelle ATO(Community Support)Community Support
10 Sept 2021

Hi @mau74

That's correct - if you leave Australia permanently, you'll be treated as a foreign resident for tax purposes from the date you depart Australia.

When you return to Italy, you may need to speak to them regarding your residency status for tax purposes.

TaxedoMask(Devotee)Devotee
10 Sept 2021

to add

I wouldn't sweat it. If you lived permanently on a yacht in international waters you wouldn't be a tax resident of any territory either - though its going to be a bit of work to prove and actually do.

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Leaving Australia permanently: when do I become non-resident? | ATO Community