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hannah24(Newbie)Newbie
10 Jan 2024

I am a New Zealander living in Australia for the last 7 months. My partner and I (also NZer) own a rental property back in NZ. I believe that we are temporary residents for tax purposes in Australia which means that our rental income won't be taxed here in Australia. Do we still get the tax-free threshold for Australian residents (after living here for 183 days)? I am deciding whether to fill out the "Withholding Tax Declaration Form" to access the tax-free threshold but don't want this to jeopardise being a temporary resident for the NZ rental income tax purposes.

Much appreciated,

Thanks.

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3 replies
1,106 views
3 replies

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WendyATO(Community Support)Community Support
12 Jan 2024

Hi @hannah24,


You're right if you deemed to be a foreign resident for tax purposes in Australia, you wouldn't include any NZ rental income in your return.


You can't be foreign resident for tax purposes in Australia from a rental perspective. Then an Australian resident for tax purposes such as withholding.


You can only have one residency status at a time and yes, your residency status can change over time. Generally, you're an Australian resident for tax purposes. If you have been in Australia for more than 6 months of the year, unless your usual home overseas and you do not intend to live in Australia.


Refer to our Australian resident for tax purposes page for more information. It does mean any income you earn both in Australia and overseas will need to be included in your tax return. This talks about the tax-free threshold and how it works.


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Most helpful reply

WendyATO(Community Support)Community Support
12 Jan 2024

Hi @hannah24,


You're right if you deemed to be a foreign resident for tax purposes in Australia, you wouldn't include any NZ rental income in your return.


You can't be foreign resident for tax purposes in Australia from a rental perspective. Then an Australian resident for tax purposes such as withholding.


You can only have one residency status at a time and yes, your residency status can change over time. Generally, you're an Australian resident for tax purposes. If you have been in Australia for more than 6 months of the year, unless your usual home overseas and you do not intend to live in Australia.


Refer to our Australian resident for tax purposes page for more information. It does mean any income you earn both in Australia and overseas will need to be included in your tax return. This talks about the tax-free threshold and how it works.


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