Hi team,
I am in Australia for 6 months for a fellowship( residing in the same place and has same employment all throughout) and I am registered as a sole trader. I will be leaving Australia after this.
I would like to know whether I am qualified as a tax resident or non resident during this period and also my tax rate.
Kind regards.
Hi @Australia_25,
Based on your 6-month fellowship in Australia, you may be an Australian resident for tax purposes. Generally, if you've been in Australia continuously for 6 months or more and worked in the one job and lived at the same place for most of that time, you're considered a resident.
As an Australian resident for tax purposes, you'll need to declare all income earned both in Australia and overseas on your Australian tax return. This includes your fellowship income and any sole trader earnings. You'll be taxed at resident tax rates, which means you get the adjusted tax-free threshold.
There's also the possibility you could be classified as a temporary resident for tax purposes if you hold a temporary visa and don't intend to reside in Australia permanently. Temporary residents have different tax obligations. They only pay tax on Australian-sourced income and aren't subject to tax on foreign income or gains on most foreign assets.
Use our residency decision tool to help get a clearer picture of your tax residency status. The exact determination depends on several factors including your visa type, intention to stay, family ties, and business arrangements. Your residency status affects not just your tax rate, but also which income you need to declare and various other obligations.
Hi @DamienATO,
Thank you for getting back to me. If I left Australia permanently after 6 months, will I be classed as resident or foreign resident for tax purposes.
Best regards.
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