Australian Property Tax Returns for Expats in Hong Kong

Most Australians who earn an Australian income must file an Aussie tax return even if they live overseas.

According to the ATO, you don’t need to complete a tax return if you are:

• earning less than the tax-free threshold as an Australian tax resident
• a foreign resident and didn’t earn any Australian income
• a working holidaymaker earning less than $45,001

You can find more information on our Australian Tax Rules for Expat page.

ATO will expect a tax return if you’re an Australian citizen with an Australian tax file number, even if you no longer earn Australian income.

Expats must pay 32.5% of all Australian income up to $120,000 if they’re non-residents. Any income between $120,001 and $180,000 is taxed at 37%. Income above $180,001 is taxed at 45%. Expats and non-residents don’t have a tax-free threshold.

Please read our Australian Tax Rules for Expats page to learn more about your tax obligations as an Australian expat living in Hong Kong.

Different property taxes depend on whether you’re a tax resident or non-resident for tax purposes. Tax non-residents and foreign residents must pay a range of property taxes, including:

• Income tax
• Capital Gains Tax
• Stamp Duty
• Land Tax

Learn more about what taxes you are obliged to pay as non-residents on our Property Taxes for Non-Residents in Australia page.

Aside from paying tax on worldwide income or not, there are quite a few differences between Australian tax residents and non-residents.

These differences include the following:

• Tax rates: Non-residents pay a higher tax rate on their taxable income than Australian residents. Plus, there is no free-tax threshold for non-residents; they pay 32.5% on all Australian-sourced income from $0 to $120,000.
• Medicare Levy: Non-residents do not have to pay the Medicare Levy (2%) or the Medicare Levy Surcharge. All residents pay the Medicare Levy. High-income earners pay an additional surcharge of 1 – 1.5%.
• Low and middle-income tax offsets: The low-income and middle-income tax offsets assist Australian tax residents with lower salaries. Non-residents cannot apply these offsets to their taxable income.
• Deductions: Australian non-residents and residents can deduct all income-related expenses from their taxable income.
• Principal residence capital gains tax exemption: Only Australian tax residents qualify for the main residence exemption on their capital gains tax. Non-residents must pay the entire capital gains tax amount.