Author: NikkiATO(Community Moderator)Community Moderator 29 Apr 2026
Hi @Aus_in_Canada,
The tax outcome depends on whether you’re treated as an Australian resident for tax purposes while you’re here.
If you become an Australian tax resident, your income from working in Australia is taxable in Australia, even if:
- your employer is overseas
- you’re paid into a foreign bank account.
If you remain a foreign resident for tax purposes, Australia only taxes income that has an Australian source. Whether your salary is Australian‑sourced depends on the facts, including where you physically perform the work.
Australia has a tax treaty with Canada that’s designed to prevent double taxation. We can’t say here whether Canadian tax withholding should continue or how the treaty would apply in your case. That depends on your residency status and personal circumstances, and how Canada treats remote work performed in Australia.
You’re only liable for the Medicare levy if you’re an Australian resident for tax purposes (and not covered by an exemption). The levy doesn’t depend on where your employer is based.
Check out our What remote working means for your tax return and How to work out your tax residency articles for more info.
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