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Re: First entry on a PR, foreign/Australian Resident for tax purpose while visiting?

Newbie

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  • A couple were granted a PR last year.
  • They came to Australia in September 2020 to claim the first entry before it expires but do not intend to settle here yet.
  • They intend to spend only a couple of months here as a visit/vacation.
  • Due to travel complications these days, they might need to stay a couple of months longer.
  • All their assets, residency and employment remain overseas where they came from.
  • They are staying in a hotel the whole time, possibly in different locations around the country and do not intend to work or settle here yet what-so-ever.
  • While they are here they took the advise of a friend and opened a bank account, enrolled for Medicare, opened a centerlink account and applied for a TFN. (But haven't used any of them yet)
  • (They realized later that they don't need Centerlink or a TFN yet and requested the Ato to suspend/end-date the TFN for now)
  • What is their tax residency status during this time?
  • The wife gets sick sometimes, Does using Medicare benefits while they are here now effect their tax residency status?
  • Does enrolling for a private health insurance while they are visiting now effect their tax residency status?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Nicole1976,

 

The can determine if they are a resident for tax purposes by using the residency tool. If they are they will need to report worldwide income here. If they are not a resident for tax purposes they will only need to report their Australian income. They can also use the Do I need to lodge a tax return calculator. If they do need to lodge and they're entitled to Medicare then they will be looked at for Medicare Levy. Depending on their income will also depend on Medicare Levy surcharge, which is where the Private Health Insurance factors in.

 

If you have further questions after viewing the links, please post them here.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Nicole1976,

 

The can determine if they are a resident for tax purposes by using the residency tool. If they are they will need to report worldwide income here. If they are not a resident for tax purposes they will only need to report their Australian income. They can also use the Do I need to lodge a tax return calculator. If they do need to lodge and they're entitled to Medicare then they will be looked at for Medicare Levy. Depending on their income will also depend on Medicare Levy surcharge, which is where the Private Health Insurance factors in.

 

If you have further questions after viewing the links, please post them here.