Hello there,
I’m seeking clarification about how foreign income should be treated for the Australian financial year 1 July 2025 to 30 June 2026, specifically for Services Australia / Centrelink Child Care Subsidy (CCS) reporting.
My situation:
- I am a New Zealand citizen.
- I moved permanently to Australia and started living in Brisbane in January 2026.
- This is when I became an Australian tax resident.
- Before moving, I lived and worked in New Zealand and earned salary/wages there from 1 July 2025 until December 2025.
- After moving to Australia, I continued to receive passive income from New Zealand, including rental income, and my spouse received shareholder salary and dividends from NZ companies.
My question:
Based on ATO residency rules, my understanding is:
- Income earned before becoming an Australian tax resident (e.g., NZ wages earned July–December 2025) is not taxable in Australia and should not be included as foreign income.
- Only income earned or derived after becoming an Australian resident (January 2026 onward) is considered foreign income for Australian tax purposes.
- Passive income such as rental income, shareholder salary, and dividends from New Zealand would be treated as foreign income for the portion of the financial year during which I was an Australian resident.
I need to confirm whether this interpretation is correct, as Centrelink requires us to provide an estimate of our foreign income for the 2025–26 financial year for CCS assessment.
Could someone from the ATO Community please confirm whether:
- NZ wages earned before becoming an Australian resident should be excluded, and
- Only NZ rental income, shareholder salary, and dividends received after becoming a resident should be reported as foreign income?
Any guidance would be greatly appreciated.
Thank you.
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