Bonus post! I intended my last one to be the final post on the topic of individual residency but I wanted to add this brief one on temporary residents.
Since the 1st of July 2006 there has been a new category of resident – the temporary resident. I believe the new category was created to encourage more people to come work in Australia.
You are a temporary resident if
- You hold a temporary visa granted under the Migration Act 1958 and
- You and your spouse are not Australian residents within the meaning of the Social Security Act 1991 (typically someone who holds a permanent residency visa or is an Australian citizen)
The benefit of being a temporary resident is that you will not be taxed on most foreign source income and on capital gains relating to assets that aren’t Taxable Australian Property. You will also be exempt from interest withholding tax (more on this in later posts). However, you are still taxed on your employment income.
If you are thinking of moving to or from Australia and aren’t sure what this could mean for your tax bill, please don’t hesitate to ask me a question in the comments.
My next posts will stay on the topic of residency but shift the focus to consider the residency of companies and other entities.
All advice in this blog is of a general nature. I’ve done my best to make sure it is accurate but I give no guarantees. Make sure you seek professional advice that is specific to your situation.