TL;DR
- Non-residents are only taxed on Australian-sourced income, but the ATO still requires complete documentation for every category that applies to you.
- Key document categories include payment summaries or income statements, rental income records, capital gains evidence, withholding tax certificates, and residency determination support.
- Non-residents face different tax rules than residents, including no tax-free threshold and restricted access to the 50% CGT discount on Australian property sales.
- Incomplete or incorrect lodgments attract penalties, interest charges, and ATO audit risk.
- A registered tax agent who specialises in non-resident returns can identify gaps before lodgment, not after.
Why Is Document Preparation Different for Non-Resident Tax Returns?
Non-resident tax returns are structurally different from resident returns. The ATO taxes non-residents only on Australian-sourced income, but it applies different rates, withholds tax at different points, and denies certain concessions that residents take for granted. This means the document set you need is shaped not just by what income you earned, but by which tax rules applied to each income stream.
There is also a residency determination layer. Many Australians living overseas assume their tax residency status is settled when it often is not. Documents that support your residency position are just as important as income records, particularly if your residency year included a departure or return to Australia.
What Income Records Do Non-Residents Need to Gather?
Every Australian income source you received during the 2025-26 financial year must be documented, even if withholding tax was already deducted at source.
| Income Type | Document Required | Key Note |
|---|---|---|
| Australian employment income | Income statement (via myGov / ATO online) or payment summary | Applies if you worked in Australia during the year |
| Rental income | Lease agreements, agent statements, rent receipts | Gross rental income, not net after expenses |
| Rental expense records | Council rates, strata levies, repairs, interest statements, depreciation schedules | Deductions must be supported by receipts or agent statements |
| Dividends from Australian shares | Dividend statements from the company or broker | Unfranked dividends are subject to withholding tax for non-residents |
| Interest income from Australian bank accounts | Annual interest summary from your bank | Non-resident withholding tax may already have been deducted |
| Trust distributions | AMMA or trust tax statement from the trustee | Required if you hold units in an Australian managed fund or trust |
| Business or sole trader income | Business financial statements, BAS lodgments if applicable | Applies if you operate an Australian business |
What Capital Gains Documents Are Required for Non-Residents?
Capital gains tax is one of the most documentation-intensive areas for non-residents, and also one of the most consequential. Two rules that residents rely on do not apply in full to non-residents: the 50% CGT discount on assets held over 12 months is not available in full to non-residents on taxable Australian property acquired after 8 May 2012, and the 15% Foreign Resident CGT Withholding (FRCGW) mechanism may have already collected tax at settlement.
You will need:
- Original purchase contract for the property or asset, including settlement date and purchase price
- Sale contract, with settlement date and final sale price
- Clearance certificate records (or FRCGW withholding variation documents if a variation was sought)
- Records of all capital improvement costs (extensions, renovations) with receipts
- Agent commission and legal fees incurred on sale
- If shares were sold: broker contract notes for both acquisition and disposal
- For inherited assets or gifts: date and market value at time of acquisition
The FRCGW amount withheld at settlement must be reported in your return to receive the credit against your final CGT liability. Losing track of this document directly costs you money.
What Residency and Status Documents Should You Have Ready?
If your residency status changed during 2025-26, or if you want to ensure your prior-year residency position is defensible, gather the following:
- Passport entry and exit records (travel history for the full year)
- Foreign employment contract or letter of appointment (with duration and location)
- Foreign lease agreements showing your overseas address and rental term
- Evidence of a permanent place of abode overseas (utility bills, bank statements showing overseas address)
- Australian property ownership records (owning property in Australia does not automatically make you a tax resident, but the ATO considers it as part of the Domicile Test analysis)
- If claiming a Double Tax Agreement (DTA) position: evidence of tax residency in the treaty country, such as a foreign tax residency certificate
What Withholding Tax and Offset Documents Are Needed?
Non-residents often have tax withheld in Australia before income reaches them. These withholding amounts reduce your final tax liability and must be correctly matched in your return:
- PAYG withholding statements from any Australian employer
- Dividend withholding tax statements
- Interest withholding tax certificates from Australian banks
- FRCGW payment confirmation from your conveyancer or solicitor
- Foreign tax paid receipts (for Foreign Income Tax Offset claims, if applicable under a DTA)
What Other Situation-Specific Documents Apply?
- HECS/HELP debt holders: Worldwide income evidence is required. Non-residents with HELP debt must make compulsory repayments based on their worldwide income, not just Australian income. Bank statements, foreign payslips, or foreign employer income summaries are required.
- Superannuation: If you received a superannuation lump sum or pension payment from an Australian fund during the year, the fund’s payment summary is required.
- Overdue prior-year returns: If you are catching up on multiple years, you will need the above documents for each outstanding financial year, not just 2025-26.
- Depreciation on rental property: A quantity surveyor’s depreciation schedule if not already obtained. This document often unlocks significant deductions that are missed without it.
Frequently Asked Questions
Do non-residents get the tax-free threshold in Australia?
No. Non-residents do not receive the tax-free threshold. Australian-sourced income is taxed from the first dollar at non-resident rates for the relevant financial year. Confirm current rates with a registered tax agent or the ATO directly.
Can I lodge an Australian tax return from overseas without a tax agent?
Yes, but the ATO’s online lodgment options for non-residents are limited. Many non-residents cannot access myTax due to identification verification requirements that assume Australian presence. A registered tax agent can lodge on your behalf regardless of where you live.
What happens if I missed lodging my return in prior years?
Failure to lodge penalties and general interest charges can accumulate across multiple years. However, the ATO does have mechanisms for managing overdue lodgments, and a registered tax agent with experience in penalty negotiation can approach this strategically. Acting sooner is always better than waiting.
Do I need to declare my foreign income on an Australian non-resident return?
Generally, no. Non-residents are only taxed on Australian-sourced income. However, foreign income may still be relevant for HELP debt repayment obligations and certain DTA calculations. This is a common area of confusion.
What is the deadline for lodging an Australian tax return for 2025-26?
The standard deadline for self-lodgment is 31 October 2026. Clients using a registered tax agent typically receive an extended lodgment deadline. Confirm the applicable deadline with your tax agent early in the season.
Is the 50% CGT discount available to non-residents on Australian property?
Not in full. For non-residents, the 50% CGT discount is not available on taxable Australian property acquired after 8 May 2012 where the owner was a foreign resident for the entire ownership period. An apportioned discount may apply based on any period of Australian residency during ownership, and the full discount remains available for assets acquired on or before 8 May 2012. This is one of the most significant and frequently misunderstood differences between resident and non-resident CGT treatment.
What if I am unsure whether I am a resident or non-resident for Australian tax purposes?
Residency is determined by applying four ATO tests: the Resides Test, the Domicile Test, the 183-Day Test, and the Commonwealth Superannuation Test. The outcome is fact-specific and can have material tax consequences. This determination should not be self-assessed lightly, particularly if you own Australian property or have significant Australian income.
About ODIN TaxODIN Tax is Australia’s specialist tax agent practice for Australian expats and non-residents, serving over 10,000 clients across 40+ countries. As a Registered Australian Tax Agent, ODIN Tax prepares non-resident tax returns, manages overdue lodgments, and advises on tax residency, CGT, and Foreign Income Tax Offsets across all major DTA corridors. Part of the ODIN Group alongside Odin Mortgage, ODIN Tax integrates tax strategy with property acquisition and mortgage structuring so that expat clients receive coordinated, not siloed, guidance. Headquartered in Hong Kong and led by Tax Director Pau Lam, ODIN Tax is built from the ground up for people living overseas, not adapted from a domestic practice.
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Disclaimer: This article contains general information only and does not constitute personal tax advice. Tax rules and thresholds are subject to change. The information in this article is relevant to the 2025-26 Australian financial year unless otherwise stated. Individual circumstances vary significantly, and you should seek advice from a Registered Australian Tax Agent before lodging your return or making decisions based on this content.
