“Tax residency is not a matter of counting days on a calendar. It is a legal test of where your life is centred. Get it right, and you protect your wealth; get it wrong, and the ATO will levy unexpected taxes.” –Abbotts Chartered Accountants
Moving overseas, returning to Australia, or managing Australian assets from abroad should be an exciting career or lifestyle shift. Instead, most expats find themselves bogged down in conflicting tax advice from online forums, foreign accountants, and outdated advice.
Abbotts Chartered Accountants provides clear, decisive tax strategy for Australians overseas, foreign residents selling Australian property, and inbound expats. Based at 813 Wellington Street in West Perth, our team has delivered cross-border tax advice for over three decades.
Are you a resident for Australian tax purposes?
Establishing your tax residency status under Australian law is the first step in managing cross-border finances. Australia taxes tax residents on their worldwide income, while non-residents are taxed only on Australian-sourced income.
- The Australian Taxation Office (ATO) applies statutory tests to establish tax residency Australia status:
- The resides test: The primary test evaluating where you maintain your home, family, employment, and everyday living arrangements.
- The domicile test: Assumes you remain an Australian resident unless you satisfy the ATO that you have established a permanent place of abode overseas.
- The 183-day test: Applied primarily to individuals entering Australia.
Misinterpreting these rules can result in dual taxation or unexpected Capital Gains Tax (CGT) bills when selling assets. We review your facts to provide a clear, written assessment of your tax status.
Australians living and working overseas
When you relocate abroad, your tax reporting obligations do not simply disappear. We manage tax compliance and strategic planning for Australian expats residing in destinations across the globe, including Germany, the Netherlands, Austria, Canada, the UK, and Italy.
Key issues we manage for Australian expats include:
- Main residence exemption changes: Understanding how moving overseas impacts the tax-free status of your Australian home.
- Investment income: Managing tax withholding requirements on Australian bank interest, dividends, and trust distributions.
- Foreign income reporting: Structuring foreign salary, pensions, and investment returns efficiently.
If you want to understand how cross-border rules apply to specific scenarios, read our guide on navigating the maze of foreign tax.
Moving back to Australia
Returning to Australia requires advance tax planning before you step off the plane. Bringing foreign funds back, unwinding foreign assets, or transferring overseas pension funds without advice can trigger avoidable Australian tax liabilities.
We assist returning expats with:
- Asset resets: Calculating market values for overseas assets on the date you re-establish Australian tax residency.
- Foreign pension transfers: Navigating the tax rules around transferring overseas pension schemes into Australian superannuation.
- Unwinding foreign entities: Decommissioning foreign trusts or companies while minimizing exit taxes.
Foreign residents selling Australian property
Non-residents selling Australian real estate face strict taxation measures under foreign resident capital gains rules.
Purchasers are legally required to withhold 12.5% of the gross purchase price at settlement and pay it directly to the ATO under Foreign Resident Capital Gains Withholding (FRCGW) rules, unless a clearance certificate or variation is issued.
Real-world intervention makes a substantial financial difference here. In one case, our team saved a foreign resident $65,000 on property sale taxes by identifying incorrect ATO cost-base calculations and lodging an expedited variation before settlement.
Coming to Australia to work
Inbound professionals moving to Australia need clear advice on employment income, temporary tax residency status, and employee share schemes (ESS).
Temporary residents may qualify for tax concessions on foreign-sourced income and capital gains. We structure your tax profile upon entry to ensure you claim all available entitlements while remaining compliant with Australian law.
How Abbotts works with clients across time zones
Managing your taxes in Australia while working overseas should not mean staying up until midnight to talk to your accountant.
We work with international clients using structured processes built for seamless communication across European, North American, and Asian time zones:
- Asynchronous documentation: Secure portal access for submitting tax documents and reviewing returns at your convenience.
- Scheduled virtual meetings: Fixed appointments booked around your local working hours.
- Clear, written summaries: Clear summaries outlining options, decisions, and exact ATO tax position calculations without accounting jargon.
Talk to us
Whether you require a pre-departure tax review, assistance with an Australian property sale, or ongoing cross-border tax returns, Abbotts Chartered Accountants provides straight answers backed by 35 years of experience.
Contact our West Perth office or explore our main taxation service page and full range of business services and accounting options.
Frequently asked questions
Am I still an Australian resident for tax purposes if I live overseas? You remain an Australian resident for tax purposes if you have not established a permanent place of abode overseas under the ATO domicile and resides tests.
Do Australian expats have to lodge an Australian tax return? Australian expats must lodge an Australian tax return if they earn Australian-sourced income, such as rental income, Australian dividends, or capital gains on Australian property.
Do I pay capital gains tax on Australian property if I live overseas? Foreign tax residents pay Australian Capital Gains Tax on direct and indirect interests in Australian real property without the benefit of the main residence exemption or the 50% CGT discount.
What is the foreign resident capital gains withholding rate? The foreign resident capital gains withholding rate in Australia is 12.5% on property sales valued at $750,000 or above, withheld by the buyer at settlement.
What happens to my tax residency when I move back to Australia? Your tax residency reverts to Australian resident status from the exact date you return to reside permanently in Australia, subjecting your worldwide income to Australian tax laws.
Can an Australian accountant handle my tax if I live in another country? An Australian chartered accountant can manage your Australian tax obligations remotely through secure digital platforms and structured time-zone communications.