Residency comes first
The ATO uses four tests: the resides test, the domicile test, the 183-day test and the Commonwealth superannuation test. If you go overseas temporarily and do not set up a permanent home in another country, you generally remain a resident. If you set up a permanent home abroad, you may become a foreign resident. The residency tests are explained here, and the ATO has a free tool for people who have left or plan to leave.
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What changes if you become a foreign resident
| Australian resident abroad | Foreign resident | |
|---|---|---|
| Income declared in Australia | All income, including foreign employment income and exempt income | Australian-sourced income only, such as rent, Australian employment income and capital gains on taxable Australian property |
| Tax-free threshold | Yes, $18,200 in 2026-27 | None. Part-year residents get a pro-rata amount |
| Medicare levy | 2% applies. Medicare levy surcharge rules also apply | Not payable. You claim the exemption for the days you were a foreign resident |
| HELP and similar loans | Repayments continue | Repayments continue, with extra reporting |
| Main residence exemption | Available if you meet the usual rules | Generally not available |
| Super | Locked until preservation age and a condition of release | Same rules |
The rates for foreign residents are in the 2026-27 foreign resident tax rates guide.
Rent from an Australian property
Rent is Australian-sourced income, so it is declared whether you are a resident or a foreign resident. The ATO counts the full rent and related payments you receive or become entitled to. A foreign resident pays tax from the first dollar of net rent. The rental income guide covers the detail.
Selling an Australian property
Foreign residents are taxed on capital gains from taxable Australian property, which includes real estate in Australia. Four points come up for expats:
- Main residence exemption. The ATO says a foreign resident at the time of a sale generally cannot claim it for sales after 30 June 2020, unless the life events test is met. Residents who rent out a former home can treat it as their main residence for up to 6 years, or indefinitely if they do not earn income from it.
- CGT discount. The ATO says foreign and temporary residents are not entitled to the full 50% discount for assets acquired after 8 May 2012. An apportioned discount can apply for any period you were an Australian resident.
- 15% withholding. From 1 January 2025 the buyer withholds 15% of the price on Australian real property sales, unless the seller has a clearance certificate (for Australian residents) or a variation notice from the ATO.
- Leaving Australia. When you stop being a resident, the ATO treats most assets as sold at market value, except taxable Australian property such as Australian real estate. You can choose to disregard capital gains and losses on the deemed sale, and the ATO explains the effect of that choice.
See the main residence exemption guide and selling from overseas.
Study and training loans
HELP, VET Student Loan and Australian Apprenticeship Support Loan debts stay with you. If you intend to live overseas for 183 days or more in any 12 months, the ATO requires an overseas travel notification within 7 days of leaving, and a report of your worldwide income (or a non-lodgment advice) by 31 October each year. HELP repayments from overseas has the thresholds.
Super and private health cover
The ATO says your super follows the same rules wherever you live: you cannot access it until you reach preservation age and retire, or meet another condition of release. The Medicare levy surcharge applies to Australian residents above the income thresholds without appropriate private patient hospital cover, and exempt foreign employment income counts when the surcharge is worked out.
Filing from overseas
The ATO says the easiest way to lodge from overseas is myTax, which needs a myGov account linked to the ATO with sign-in settings that work from overseas. Other options are a registered tax agent, a paper return, or a friend or family member acting under power of attorney. The normal lodgment period is 1 July to 31 October, and an Australian bank account is needed to receive a refund. The ATO says rental property records need to be kept for 5 years, which in the usual case runs from the date you lodge.
Keep reading
- Australian tax residency tests explained: are you a resident or a foreign resident?
- Foreign resident tax rates for 2026-27: what the ATO charges non-residents
- HECS-HELP repayments when living overseas: what the ATO requires and what it means for a home loan
- Tax on rental income for non-resident landlords: how the ATO treats rent from Australia
- Main residence exemption for expats and foreign residents: what the ATO rules say
- Do Australian expats pay the foreign buyer stamp duty and land tax surcharges?
Frequently asked questions
Do I need to lodge an Australian tax return if I live overseas?
It depends on your residency and your income. A resident must declare worldwide income. A foreign resident must declare Australian-sourced income such as rent or Australian employment income. The ATO's "Do I need to lodge a tax return?" tool is the place to check, and a registered tax agent can confirm for your case.
Do I pay Australian tax on my overseas salary?
If you are an Australian resident for tax, the ATO says you must declare all foreign employment income, including exempt income, even if tax was withheld abroad. From the date you cease to be an Australian resident, you do not need to return foreign-source income.
Can I withdraw my super when I move abroad?
Not because you have moved. The ATO says your super follows the same rules wherever you live: you cannot access it until you reach preservation age and retire, or meet another condition of release. The ATO also notes that people moving to New Zealand can transfer their super to KiwiSaver from participating funds.
Will I be taxed twice on the same income?
Possibly, in the sense that two countries may both claim a right to tax. Australia has tax treaties with many countries and a foreign income tax offset that mainly applies to Australian residents who paid foreign tax on foreign income. A foreign resident with Australian rent usually looks to their home country for relief. See double tax agreements and Australian property.
Sources
- Living overseas and remaining an Australian tax resident, Australian Taxation Office
- Living overseas and becoming a foreign tax resident, Australian Taxation Office
- Foreign and temporary residents, Australian Taxation Office
- Your tax residency, Australian Taxation Office
- Australian resident for tax purposes, Australian Taxation Office
- Rental properties guide 2026: rental income, Australian Taxation Office
- Tax rates: Australian residents, Australian Taxation Office
- Main residence exemption for foreign residents, Australian Taxation Office
- CGT discount for foreign residents, Australian Taxation Office
- How changing residency affects CGT, Australian Taxation Office
- Owning real property in Australia, Australian Taxation Office
- Foreign resident capital gains withholding overview, Australian Taxation Office
- Records for rental properties and holiday homes, Australian Taxation Office
- Overseas obligations when repaying loans, Australian Taxation Office
- Lodge your tax return from outside Australia, Australian Taxation Office
Checked 7 October 2026.
Expat Finance is an independent guide. It is not a lender, mortgage broker or credit provider, it does not hold an Australian credit licence, and it does not give credit, legal, tax or migration advice. It is not affiliated with any bank, the ATO or the Foreign Investment Review Board. General information only, not legal, tax, migration or financial advice.