Do I pay Australian tax on overseas income earned?

 Author: JayATO(Community Support)Community Support

17 Mar 2026

Hi @Nav17,

Your understanding is correct. The salary you earned in the UAE while you were a non-resident for Australian tax purposes remains non-taxable in Australia, even if you return to Australia during the 2025–26 tax year and become a resident again.

When you return and re-establish residency, you'll become a part-year resident for the 2025–26 income year. As a part-year resident, you'll only need to declare income you earned as an Australian resident. This means the UAE salary earned before your return won't be included in your Australian taxable income for that period.

From the date you return and become an Australian resident again, any income you earn from that point onwards will be taxable in Australia. Australian residents are required to declare their worldwide income, so any salary or other income earned after you re-establish residency must be included in your tax return.

When you lodge your 2025–26 tax return, you'll need to complete the part-year resident question. This includes providing the date you became an Australian resident for tax purposes again and the number of months you were a resident during that income year. Part-year residents have a tax-free threshold of at least $13,464, with the remaining amount pro-rated based on the number of months you were a resident.

You can find more information about part-year residency and declaring your worldwide income as an Australian resident on our website. The key resources are about working out your residency status for tax purposes and understanding your obligations as an Australian resident for tax purposes.

Reply1 likes

• Report as inappropriate