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lepibane83(Newbie)Newbie
14 Oct 2021

I am an Australian Permanent Resident, living and working for an Australian company. As of recently, I am planning to go overseas for about 12-14 months. Work permitting I intend to keep my job as the only income to be paid into my Australian bank account and lodge my tax return at the end of each financial year. I am planning to return to Australia after this period. I have a house in Australia that I'll be renting out for the duration of the period. I am wondering if there are any tax implications if I was to work from overseas for an Australian company? Is there a maximum period I can work for an Australian company remotely?

18,688 views
3 replies
18,688 views
3 replies

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AriATO(Community Support)Community Support
18 Oct 2021

Hi @lepibane83 Yes you can continue to work remotely for the Australian company. If you become a non-resident of Australia for tax purposes then your employer may not have an obligation to withhold tax. If there's a tax treaty then that would ultimately decide which country has taxing rights.

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TonyATO(Community Support)Community Support
ATO Certified Response15 Oct 2021

Hi @lepibane83 The tax implications will depend on whether your residency status changes. Non-residents are taxed at a higher rate, but are only taxed on their Australian sourced income, whereas Australian residents are taxed on their worldwide income. You may want to double check your residency status while living overseas: https://www.ato.gov.au/Individuals/Coming-to-Australia-or-going-overseas/Australians-living-overseas/

lepibane83(Newbie)Newbie
15 Oct 2021

Thanks for the prompt response @TonyATO I am waiting for citizenship, suspect it's delayed due to the Covid situation. Australian income would be my only source of income. As I understand your response, I could work from overseas (remotely) for an Australian company, it would just be a matter of the tax rate that I'd have to pay?

Most helpful reply

AriATO(Community Support)Community Support
18 Oct 2021

Hi @lepibane83 Yes you can continue to work remotely for the Australian company. If you become a non-resident of Australia for tax purposes then your employer may not have an obligation to withhold tax. If there's a tax treaty then that would ultimately decide which country has taxing rights.

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