Property Tax Return Australia for Expats in the USA

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 make any Australian income
• a working holidaymaker earning less than $45,001

You can find more information about Australian tax returns for non-residents on our Expat Tax Rules page.

In Australia, non-resident tax applies to those who live and work abroad without intending to return to Oz. Non-tax residents only need to lodge tax returns for income earned in Australia. It’s also a little more challenging to prove that you’re a non-resident for tax purposes.

You can check our Resident Vs Non-Resident Tax in Australia page for more information.

Lodging tax returns in Australia is pretty straightforward, whether in Australia or overseas. You will need a unique Tax File Number (TFN). The Australian Tax Office assigns all Aussie taxpayers a TFN and a MyGov account.

You may need to update the settings to allow you to complete your tax return from overseas. You can submit your tax return online through myTax, the fastest and easiest way to pay taxes.

The tax office will require the following:

1. Your bank account details
2. Proof of net taxable income
3. Proof of expenses and deductions
4. Evidence of private health funds (if you’re required to pay the Medicare Levy Surcharge)

You can find out more on our How to Lodge your Australian Tax Return as an Expat 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.
• 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.