When you’re an Australian expat, even small missteps can cause big tax headaches with the ATO. Here are the most common mistakes to avoid:
1️⃣ Assuming You’re Automatically a Non-Resident
Many Aussies think leaving the country is enough to lose tax residency.
🚩 Wrong: The Resides Test, Domicile Test, and 183-Day Test still apply.
If you maintain a home, family ties, or strong connections in Australia, the ATO may still consider you a resident—meaning your worldwide income is taxable.
🔗 Residency tests | Australian Taxation Office
2️⃣ Missing Australian Filing Deadlines
Even non-residents often have filing obligations. Many forget they still need to lodge returns, especially if they:
- – Earn Australian-sourced income (e.g. rental property, investments)
- – Have CGT events on assets considered “taxable Australian property”
Penalties and interest add up fast if you don’t lodge on time.
3️⃣ Double Taxation from Ignoring Tax Treaties
Australia has double tax agreements (DTAs) with many countries, but expats often fail to use them properly.
➡ Example: Rental income may be taxable in both Australia and your host country, unless you claim treaty relief.
4️⃣ Poor Record-Keeping
The ATO can demand evidence years later. Without detailed records of:
- -Entry/exit dates
- -Income earned abroad
- -Exchange rates applied
- -Foreign tax paid
You risk overstating your taxable income or missing credits.
5️⃣ Forgetting Capital Gains Tax (CGT) on Property
If you keep an Australian property while overseas, CGT rules still apply. Since 2020, non-residents no longer qualify for the main residence exemption—so selling your Aussie home could trigger a significant tax bill.
✅ Tip:
Don’t assume that moving overseas means you’ve left the ATO behind. The best protection is:
- -Confirm your tax residency status before leaving.
- -Use treaty provisions correctly.
- -Keep meticulous records.
- -Lodge on time, even as a non‐resident.
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