Being a non-resident in Australia comes with its own set of tax obligations. Whether you’re an Aussie expat living overseas or a foreign investor eying property in Australia, understanding the tax implications is crucial for anyone planning to live, work, or invest in the country.
In this article, you can learn about the various tax implications for non-residents in Australia. From income tax to capital gains tax, we’ll cover the top 9 tax implications you need to know to stay compliant.
Regarding the tax for foreigner buying property in Australia, only their Australian-sourced income is considered taxable income.
This typically includes rental income from Australian property, income from businesses and investments in Australia, dividends from Australian companies, and profits from the sale of taxable Australian property. The taxable income is calculated by subtracting expenses from the assessable income.
For instance, if you receive AU $20,000 in rent from your Australian property and incur AU $12,000 in property expenses, your taxable income would be AU $8,000. This difference represents the actual profit from your rental property subject to taxation.
2. Foreign Resident Tax Rates 2025-26
Non-residents are subject to foreign resident tax rates. You don’t benefit from the tax-free threshold. Instead, the tax for foreigner buying property in Australia is a flat rate from the first dollar of Australian-sourced income, with higher rates kicking in at various income levels.
Foreign Resident Tax Rates 2025-26
| Income Thresholds | Tax Rate | Tax Payable for This Income Bracket |
|---|---|---|
$0 – $135,000 | 30% | 30c for each $1 |
$135,001 – $190,000 | 37% | $40,500 plus 37c for each $1 over $135,000 |
$190,001 and above | 45% | $60,850 plus 45c for each $1 over $190,000 |
Foreign resident tax rates in Australia differ from resident tax rates primarily because the tax system is designed to account for the different levels of access to public services and infrastructure that residents and non-residents have,
Foreign Resident Tax Rates 2024-25
| Income Thresholds | Tax Rate | Tax Payable for This Income Bracket |
|---|---|---|
$0 – $135,000 | 30% | 30c for each $1 |
$135,001 – $190,000 | 37% | $40,500 plus 37c for each $1 over $135,000 |
$190,001 and above | 45% | $60,850 plus 45c for each $1 over $190,000 |
Australian Tax Support for Expats, Wherever You Live
Navigating Aussie tax rules from overseas? Our registered tax agents can explain what applies to you and what the ATO expects.
3. Capital Gains Tax
Capital Gains Tax (CGT) is not a separate tax in Australia but is added to the net ordinary income on the tax return. You’re liable to pay CGT on the sale of any Australian property you own, including residential, commercial, and rental properties.
Please note that if you sell a property that was previously your main residence in Australia, you can’t claim the 50% main residence exemption and will be taxed on the total capital gain if you’re a non-resident at the time of sale.
Can Foreigners Buy Property in Australia?
Yes, foreigners can buy property in Australia. However, there are specific regulations and restrictions in place for foreigners buying property in Australia.
Foreigners must typically obtain approval from the Foreign Investment Review Board (FIRB) before purchasing property, and there are limits on the types of properties they can buy.
Buying property in Australia as a non-resident also includes other key rules, which you can learn from the foreigner buying property in Australia guide.
4. Land Tax
Non-residents, including expats and foreign investors who own property in Australia, may be liable for land tax. The rate and thresholds for land tax vary across states, with a tax-free threshold in most states. However, non-residents often face additional surcharges.
Land tax is generally based on the unimproved value of the land, and it’s important to be aware of the specific regulations in the state or territory where your property is located.
5. Rental Income
If you earn rental income in Australia as an expat or foreign investor, you must declare it in your Australian tax return. However, you can maximise your savings by claiming tax deductions for expenses, such as property management fees, repairs and depreciation, on your rental property.
If rent is your sole Australian income source, it’s taxed at the same rate as your taxable income. However, if you have rental income plus other Australian-sourced income, your tax liability is calculated as the sum of your total taxable income.
6. Stamp Duty
Stamp duty is a significant consideration for non-residents purchasing property in Australia. Each state and territory has its own rates and regulations regarding stamp duty. It’s generally calculated based on property price, intended purpose of purchase, and location of the property.
Typically, stamp duty is between 4% and 5% of the purchase price. Foreign nationals are subject to an additional surcharge between 7% and 8%. However, this doesn’t apply to property purchases in the Northern Territory, the ACT, or Tasmania.
For an in-depth insight, check out the Stamp Duty in Australia page.
7. Negative Gearing
Non-residents can use negative gearing to claim deductions for expenses related to their investment property, such as interest on the loan, property management fees, council rates, and depreciation, against their Australian taxable income.
For example, if you own a rental property in Australia, you can claim deductions for expenses such as mortgage interest, property management fees, maintenance costs, and depreciation, reducing your taxable income and potentially lowering your tax liability. You can also carry forward these losses to offset your capital gains in the following financial year.
8. Tax Deductions
As non-residents owning Australian property, you can claim various tax deductions to offset your taxable income and maximise your savings. These deductions typically include expenses related to earning rental income, such as property management fees, maintenance and repair costs, interest on loans, and depreciation of property and assets.
For other small businesses, employment, or investment income, expenses such as travel, tools and equipment, gifts, and working-from-home expenses can be claimed. However, the Australian Taxation Office doesn’t allow claims for expenses for private purposes.
9. Tax Filing Requirements
When filing a tax return as a non-resident, you must declare all your Australian-sourced income. Ensuring timely and accurate filing of your tax return is crucial to avoid penalties and interest charges. Correct filing is also necessary to avoid the hassle of audits.
Obtaining a Tax File Number (TFN) is also advisable to avoid higher withholding tax rates. Without a TFN, you may be subject to higher withholding tax rates on your income in Australia.
If you don’t provide a TFN to your employer or financial institution, they are legally required to withhold tax from your payments at the highest marginal rate, which can be significantly higher than the standard rates.
How Does Non-Resident Tax Affect My Mortgage?
Understanding your tax residency status is essential to know your tax implications. The Australian Taxation Office (ATO) considers several factors to determine if you’re a resident for tax purposes, including your physical presence, intention to stay, and social and economic ties to Australia. Note that it’s different from being an Australian citizen.
Your Australian non-residency status affects your mortgage and investment in Australian property. You may face higher withholding tax rates on interest and rental income, and you’re not eligible for the CGT exemption on your principal residence.
Australian banks calculate your borrowing power based on the prevailing tax rate, which is generally higher than in other countries. You’ll likely face higher interest rates, limited loan options, and potentially stricter lending criteria.
For instance, the borrowing power of an Aussie expat in the UAE with an annual salary of $100,000 and a 0% Emirati income tax rate would be assessed at a 30% Australian tax rate. This means his borrowing power would be considered $70,000 instead of the whole amount.
Clear All Your Non-Resident Australian Tax Issues
The implications of Australian taxation can be complex, especially for non-residents who are unfamiliar with Australian tax laws. With the right knowledge and professional support, you can effectively navigate the Australian tax landscape from overseas and make informed decisions about your investments.
Odin Tax understands the complexities of non-resident taxation and is here to help. Our team of experts provides personalised advice to Aussie expats and foreign investors and support to ensure you effortlessly meet your tax obligations in Australia.
Talk to a tax expert today to clear out any questions regarding your Australian tax returns. Navigate your Australian tax returns with confidence and ease.
FAQs about the Tax Implications for Non-Residents in Australia
Do non-residents pay taxes in Australia?
Yes, non-residents pay taxes in Australia on their Australian-sourced income, which typically includes rental income, business and investment income, dividends, and profits from the sale of taxable Australian property.
What is the non-resident tax in Australia?
The non-resident tax in Australia applies to individuals who are not considered residents for tax purposes but earn income from Australian sources. Here’s a breakdown of key aspects:
Income Tax Rates for Non-Residents:
- Non-residents do not qualify for the tax-free threshold, so they are taxed on their first dollar of income.
- The tax rates (as of 2024-2025) are:
- $0 – $135,000: 30%
- $135,001 – $190,000: 37%
- Above $190,000: 45%
- The tax rates (as of 2023-2024) are:
- $0 – $120,000: 32.5%
- $120,001 – $180,000: 37%
- Above $180,000: 45%
Australian-Sourced Income:
- Non-residents are only taxed on income earned from Australian sources, including wages, rental income, business income, and certain capital gains.
Capital Gains Tax (CGT):
- Non-residents are subject to CGT on Australian property and certain other taxable assets, but not typically on personal or foreign-held assets.
Withholding Taxes:
- Non-residents are subject to withholding taxes on certain types of investment income:
- Interest: 10%
- Dividends: Up to 30% (lower if a tax treaty applies)
- Royalties: 30%
- Non-residents are subject to withholding taxes on certain types of investment income:
Non-residents are generally taxed at higher rates, and tax obligations depend on the type of Australian income earned.
What is the definition of a non-resident for tax purposes?
A non-resident for tax purposes in Australia is an individual who does not meet the criteria to be considered an Australian tax resident. Typically, non-residents:
- Spend less than 183 days in Australia within a tax year.
- Do not have a permanent home or substantial ties in Australia (e.g., family, business, or financial connections).
- Are not considered residents under the residency tests set by the Australian Taxation Office (ATO), which include factors like location, intention to stay, and the nature of their connection to Australia.
Non-residents are taxed only on Australian-sourced income and at higher rates than residents.
What is the rate of non-resident tax in Australia?
The rate of non-resident tax in Australia for 2024-2025 is:
- $0 – $135,000: 30%
- $135,001 – $190,000: 37%
- Above $190,000: 45%
The rate of non-resident tax in Australia for 2023-2024 is:
- $0 – $120,000: 32.5%
- $120,001 – $180,000: 37%
- Above $180,000: 45%
Non-residents are taxed from the first dollar earned, without the benefit of a tax-free threshold, and only on Australian-sourced income.
How is investment income taxed?
You can calculate your investment income as follows:
- Add all your taxable income
- Subtract every tax deduction
- Pay your income tax based on your bracket
Non-residents aren’t eligible for the tax-free threshold of $18,200.
What are the tax consequences of an investment in mutual funds?
Investment income from mutual funds or property must be reported on your tax return and is subject to income tax. If you sell shares or other assets, the resulting capital gain must also be included in your taxable income.
What is the tax impact of selling a house?
Selling a house may result in capital gains tax being owed. Australian residents may be eligible for the main resident exemption, but non-residents must pay the full amount of capital gains tax. Expenses related to the property can be deducted from the taxable income to minimise this tax liability.
How can I reduce my rental income tax?
To reduce tax on your rental income, you can claim deductions for expenses like maintenance, loan interest, insurance, and depreciation. If expenses exceed rental income, you can also use negative gearing. Consulting a tax professional can provide further guidance.
When is the tax return deadline for non-residents?
For non-residents, the deadline to lodge an Australian tax return is the same as for residents – 31 October, following the end of the financial year on 30 June. However, with a registered tax agent, you may be eligible for an extension up to 15 May of the following year. Please engage them before the 31st October deadline to take advantage of any extended deadline and ensure compliance.
Do I pay tax in Australia if I am a non-resident?
Yes, as a non-resident, you are still required to pay tax on income you earn from Australian sources, but the rules differ from those for residents. Here’s how it works:
Australian-Sourced Income: As a non-resident, you will only be taxed on income earned from sources within Australia. This includes employment income, rental income from Australian property, business income, and capital gains from Australian assets (in some cases).
Higher Tax Rates: Non-residents are typically subject to higher tax rates than residents. For instance, non-residents don’t benefit from the tax-free threshold, so they are taxed on every dollar of income starting from 32.5% for income up to $120,000 (as of the current tax year).
No Medicare Levy: Non-residents usually do not pay the Medicare levy, which funds Australia’s public healthcare system.
Investment Income: If you earn dividends, interest, or royalties from Australian sources, they may be subject to withholding tax, typically at a flat rate determined by the tax treaty between Australia and your country of residence.
Capital Gains Tax (CGT): Non-residents are subject to Australian Capital Gains Tax on taxable Australian property, including real estate and certain business assets. However, non-residents are generally exempt from CGT on personal assets and shares, unless they own 10% or more of the company.
So, if you’re a non-resident, you’ll pay tax on Australian-sourced income, but the tax rates and rules vary compared to residents.
How much tax does a foreigner pay in Australia?
The amount of tax a foreigner (non-resident) pays in Australia depends on the type of income earned and the relevant tax rates for non-residents. Here’s a breakdown:
1. Income Tax for Non-Residents
Non-residents are taxed on their Australian-sourced income but do not receive the tax-free threshold available to residents.
The foreign resident tax rates for 2023-2024 are:
- $0 – $120,000: 32.5%
- $120,001 – $180,000: 37%
- Above $180,000: 45%
The current foreign resident tax rates as of 2024-2025 are:
- $0 – $135,000: 30%
- $135,001 – $190,000: 37%
- Above $190,000: 45%
2. No Medicare Levy
Non-residents do not have to pay the Medicare levy, which residents pay to fund Australia’s public healthcare system. This can slightly reduce the overall tax burden compared to residents.
3. Withholding Tax on Investment Income
For certain types of investment income, such as dividends, interest, and royalties, withholding tax applies:
- Dividends: Withholding tax is typically 30%, but it may be reduced to 15% or lower if a Double Tax Agreement (DTA) exists between Australia and the foreigner’s country of residence.
- Interest: A flat withholding tax rate of 10% applies.
- Royalties: The standard withholding tax rate is 30%, though this can be reduced under some DTAs.
4. Capital Gains Tax (CGT)
Foreigners are subject to Capital Gains Tax (CGT) on taxable Australian property, which includes:
- Real estate in Australia
- Business assets
- Shares if owning 10% or more of the company
Non-residents are not subject to CGT on personal assets or investments in shares if they own less than 10% of the company.
5. Superannuation Contributions
Foreign workers who have contributed to Australia’s superannuation system may request a Departing Australia Superannuation Payment (DASP) upon leaving the country, but this payment is subject to a tax of 35% on the superannuation balance.
Summary
- Non-residents pay 32.5% on Australian income up to $120,000, rising to 45% for higher earnings.
- Withholding taxes of up to 30% apply on dividends, interest, and royalties (subject to reductions under a DTA).
- CGT applies to Australian property, with rules varying for real estate and shares.
What is the 180 day tax rule in Australia?
The 180-day tax rule in Australia is commonly referred to when determining tax residency status, but it’s important to note that it is not the sole determinant of tax residency. Here’s what it means and how it works:
1. Residency for Tax Purposes
The 180-day rule often comes into play when assessing whether an individual is considered an Australian tax resident or a non-resident. Generally, if you spend more than 183 days in Australia during a tax year, you may be considered an Australian tax resident. However, simply staying in Australia for more than 183 days doesn’t automatically make you a resident, as other factors are also taken into account, such as your intention to stay, your ties to the country, and your regular place of residence.
2. Factors Considered for Tax Residency
While the 183-day rule is a general guideline, the Australian Taxation Office (ATO) considers several other factors to determine residency, such as:
- Purpose and nature of your visit: Are you in Australia temporarily or with the intention of settling?
- Social and economic ties: Do you have a permanent home, family, or business in Australia?
- Continuity of presence: Are you staying in Australia for an extended period, or are your visits frequent and short?
3. Implications of Being a Tax Resident
If you are considered an Australian tax resident:
- You must declare your global income in Australia, including income earned from overseas.
- You may be eligible for the tax-free threshold (up to AUD 18,200), and your tax rates may be lower than those of a non-resident.
If you are a non-resident:
- You only need to declare your Australian-sourced income.
- You do not qualify for the tax-free threshold, and tax rates start at 32.5% for income up to AUD 120,000.
Summary of the 180-Day Rule
The 180-day rule helps determine your tax residency status based on how long you stay in Australia, but it is not definitive. The 183-day threshold is a guideline, and the ATO also considers other factors, such as your purpose and ties to Australia, to determine if you are a resident for tax purposes.
How much is non resident withholding tax in Australia?
The non-resident withholding tax in Australia applies to certain types of income paid to non-residents and varies based on the type of income. Here’s a breakdown of the withholding tax rates for non-residents:
1. Dividends
- Unfranked Dividends: Generally, withholding tax is 30% on unfranked dividends (dividends not covered by company tax credits).
- Franked Dividends: No withholding tax is applied to fully franked dividends (because the company has already paid Australian tax on the profits).
However, the rate for unfranked dividends may be reduced if a Double Taxation Agreement (DTA) exists between Australia and the non-resident’s country, often lowering the rate to 15%.
2. Interest
- Interest Payments: The withholding tax rate on interest payments to non-residents is a flat 10%. This applies to interest earned from Australian sources, such as bank accounts, bonds, or other lending arrangements.
3. Royalties
- Royalty Payments: The standard withholding tax on royalties paid to non-residents is 30%, though many DTAs reduce this rate, often to 10% or less, depending on the specific agreement.
4. Managed Investment Trust (MIT) Payments
- For distributions from Australian Managed Investment Trusts (MITs), the withholding tax rate for non-residents is typically 15%, but it may vary based on the country of residence and the type of income distributed.
Withholding Tax Reduction via Double Tax Agreements (DTAs)
If a Double Tax Agreement (DTA) exists between Australia and the non-resident’s country, the withholding tax rates on dividends, interest, and royalties may be reduced. These rates depend on the specific provisions of the treaty.
Summary of Withholding Tax Rates:
- Dividends: 30% (unfranked), 0% (franked), often reduced to 15% under DTAs.
- Interest: 10%.
- Royalties: 30%, often reduced to 10% or lower under DTAs.
- Managed Investment Trust (MIT) Payments: Typically 15%.
These taxes are deducted at the source, meaning the payer (such as a company or financial institution) withholds the tax before transferring the net amount to the non-resident.
Is Australia tax-free for foreigners?
No, Australia is not tax-free for foreigners. Foreigners, or non-residents, are required to pay tax on income earned from Australian sources.
The tax rates and obligations for non-residents differ from those for Australian residents, and foreigners often face higher tax rates on their Australian income. Here’s a breakdown of the key tax rules for foreigners in Australia:
1. Australian-Sourced Income
Non-residents are taxed only on income earned from Australian sources. This includes:
- Employment income from work done in Australia
- Rental income from Australian property
- Business income generated in Australia
- Capital gains from certain Australian assets, such as real estate
2. Higher Income Tax Rates for Non-Residents
Non-residents do not benefit from the tax-free threshold available to residents, meaning they are taxed on every dollar of income they earn in Australia. The income tax rates for non-residents (as of 2023-2024) are:
- $0 – $135,000: 30%
- $135,001 – $190,000: 37%
- Over $190,000: 45%
3. Withholding Taxes on Investment Income
Non-residents are subject to withholding taxes on income such as dividends, interest, and royalties:
- Dividends: Unfranked dividends (those without tax credits) are subject to a withholding tax of up to 30%, though this may be reduced under a Double Tax Agreement (DTA).
- Interest: A flat withholding tax rate of 10%.
- Royalties: A standard withholding tax rate of 30%, with potential reductions under DTAs.
4. Capital Gains Tax (CGT)
Non-residents are subject to Capital Gains Tax (CGT) on certain Australian assets, particularly real estate and business assets. Non-residents are typically exempt from CGT on personal assets and some investments, such as shares, unless they hold 10% or more of a company.
5. No Medicare Levy
Non-residents do not have to pay the Medicare levy, which is used to fund Australia’s public healthcare system. This can slightly reduce their overall tax liability.
Conclusion
While Australia is not tax-free for foreigners, non-residents are only taxed on Australian-sourced income. They are subject to higher tax rates than residents and must also pay withholding taxes on certain types of income. However, foreign investors and workers can often reduce their tax burden through tax treaties or exemptions.
Can a foreigner buy property in Australia?
Yes, foreigners can buy property in Australia, but they must obtain Foreign Investment Review Board (FIRB) approval.
Generally, buying property in Australia as a foreigner includes some restrictions – they are only allowed to purchase new properties, vacant land, or properties for redevelopment.
Temporary residents can buy one established property to live in, with restrictions. Additional fees and taxes, such as FIRB application fees and stamp duty surcharges, also apply.
Can a non resident buy property in Australia?
Yes, non-residents can buy property in Australia, but they must obtain approval from the Foreign Investment Review Board (FIRB). Non-residents are generally restricted to purchasing new properties, vacant land, or properties for redevelopment. Additional costs, such as FIRB fees and stamp duty surcharges, apply.
What is the foreign investment property tax Australia?
The foreign investment property tax Australia refers to the additional taxes and fees that foreign investors must pay when purchasing property. These can include:
Foreign Investment Review Board (FIRB) Fees: Foreign buyers must pay a fee when seeking approval to buy property, starting at AUD 6,350 for properties valued up to AUD 1 million.
Stamp Duty Surcharges: Many states, such as New South Wales and Victoria, impose an additional stamp duty surcharge for foreign investors, typically ranging from 4% to 8% of the property’s value.
Annual Vacancy Fees: Foreign property owners must also pay an annual vacancy fee if their property is not occupied or rented out for at least six months of the year.
These taxes aim to regulate foreign investment and ensure contributions to Australia’s housing market and tax revenue.
What is the rental income tax Australia?
The rental income tax in Australia applies to income earned from renting out a property. Here’s how it works:
Taxable Rental Income: Any income earned from renting property in Australia is considered taxable. This includes rent payments and any other rental-related income, such as bond or security deposits kept by the landlord.
Tax Rates:
- Residents: Rental income is taxed at the same progressive tax rates as other income, starting with a tax-free threshold up to AUD 18,200 and going up to 45% for higher income brackets.
- Non-residents: Non-residents pay a flat tax rate starting at 32.5% from the first dollar of income, as they don’t qualify for the tax-free threshold.
Deductions: Landlords can claim deductions on various rental property expenses, such as:
- Property management fees
- Mortgage interest
- Repairs and maintenance
- Depreciation on assets like appliances
Net Rental Income: After allowable deductions, the remaining net rental income is added to the taxpayer’s total income and taxed according to their tax bracket.
In summary, rental income in Australia is taxable, but landlords can reduce their tax liability through deductions on eligible expenses. Non-residents face higher tax rates on their rental income.
What is the foreign investment property tax Australia?
The foreign investment property tax in Australia refers to additional taxes and fees that foreign buyers must pay when purchasing property. These include:
Foreign Investment Review Board (FIRB) Fees: Foreign buyers need FIRB approval, with fees starting at AUD 6,350 for properties valued up to AUD 1 million, and increasing with the property’s value.
Stamp Duty Surcharges: States like New South Wales and Victoria charge an additional stamp duty surcharge for foreign buyers, typically between 4% to 8% of the property’s value.
Land Tax Surcharges: Some states impose an ongoing land tax surcharge on foreign property owners, which can range from 0.5% to 2% annually.
These measures aim to regulate foreign investment and ensure contributions to local housing and infrastructure.
What is the tax for foreigner buying property in Australia?
Foreign Investment Review Board (FIRB) Fees: Foreign buyers must pay FIRB approval fees, starting at AUD 6,350 for properties up to AUD 1 million, with higher fees for more expensive properties.
Stamp Duty Surcharge: Many states charge a stamp duty surcharge for foreign buyers, typically ranging from 4% to 8% of the property’s value, depending on the state.
Land Tax Surcharge: Some states, like New South Wales and Victoria, also impose an annual land tax surcharge for foreign owners, usually between 0.5% to 2%.
Buying property in Australia as a foreigner generally includes these taxes in addition to standard property purchasing costs with the aim to regulate foreign investment in Australian real estate.
What are the taxes for an Australian expat buying property in Australia?
Yes, Australian expats can buy property in Australia.
As Australian citizens, they do not need approval from the Foreign Investment Review Board (FIRB), which is typically required for foreign buyers. Expats can purchase both new and established properties, including investment properties and primary residences.
However, expats should be aware of the following:
Taxes: Expats must pay standard stamp duty on property purchases and may be subject to Capital Gains Tax (CGT) if they sell the property, especially if it is not considered their main residence.
Financing: Some Australian banks may impose stricter lending criteria for expats, such as higher deposit requirements or limited loan options.
Tax Residency: The tax treatment of rental income or capital gains will depend on their tax residency status.
In summary, Australian expats can freely purchase property, but should consider tax implications and financing conditions.
Can expats buy property in Australia?
For an Australian expat buying property in Australia, the taxes are similar to those for Australian residents, but some additional factors may apply:
Stamp Duty: Expats must pay stamp duty, a state-based tax on property purchases. The rate varies by state and the value of the property, but it’s a standard tax for all property buyers.
Capital Gains Tax (CGT): If an expat sells the property in the future, they may be subject to Capital Gains Tax on any profit from the sale. However, expats are typically not eligible for the main residence exemption, which residents can use to avoid CGT on their primary home.
Land Tax: Some states may charge land tax on property ownership, especially for investment properties. Rates vary by state, and this can apply annually based on the value of the land.
Foreign Surcharges: If the expat holds dual citizenship or permanent residency elsewhere, they may be considered a “foreign buyer” in some cases, triggering foreign buyer surcharges on stamp duty or land tax in certain states (though this depends on individual state rules).
Australian expats face standard taxes such as stamp duty and potential Capital Gains Tax but may encounter additional land tax or surcharges if classified as foreign buyers. It’s important to check the specific rules in the state where the property is located.
What are the tax rates for residents and non-residents?
Here are the tax rates for residents and non-residents in Australia for the 2024-2025 financial year:
Residents:
- $0 – $18,200: 0% (tax-free threshold)
- $18,201 – $45,000: 16%
- $45,001 – $135,000: 30%
- $135,001 – $190,000: 37%
- Over $190,000: 45%
Non-Residents:
- $0 – $135,000: 30%
- $135,001 – $190,000: 37%
- Over $190,000: 45%
And here are the tax rates for residents and non-residents in Australia for the 2023-2024 financial year:
Residents:
- $0 – $18,200: 0% (tax-free threshold)
- $18,201 – $45,000: 19%
- $45,001 – $120,000: 32.5%
- $120,001 – $180,000: 37%
- Over $180,000: 45%
Non-Residents:
- $0 – $120,000: 32.5%
- $120,001 – $180,000: 37%
- Over $180,000: 45%
Non-residents are taxed from the first dollar earned, with no tax-free threshold, and only on Australian-sourced income.
