Total Income
$140,000.00
AU Tax Payable
$23,938.00
FITO Offset
$12,000.00
Effective Rate
17.1%
Combined Rate
25.7%
Status
Tax Composition
Foreign Income Tax Offset (FITO)
Australian residents are taxed on worldwide income. To prevent double taxation, you can claim a Foreign Income Tax Offset for tax paid in another country. The offset is limited to the lesser of the foreign tax paid or the Australian tax attributable to that foreign income.
Residency for Tax Purposes
The ATO uses several tests to determine tax residency: the resides test, domicile test, 183-day test, and superannuation test. Residents are taxed on worldwide income with access to the tax-free threshold. Non-residents are only taxed on Australian-sourced income with no tax-free threshold.
Tax Treaties
Australia has tax treaties with many countries that may affect how your income is taxed. These treaties can determine which country has the right to tax specific types of income and may provide additional relief from double taxation.
When to Seek Professional Advice
International tax situations are complex. If you have income from multiple countries, are transitioning your residency status, or have complex investments overseas, it is strongly recommended to consult a tax professional who specialises in expatriate taxation.
ATO-Aligned: Uses 2025-26 tax rates. Foreign income must be converted to AUD at the exchange rate at the time of receipt. Seek professional advice for complex international tax situations.
Tax rules for foreigners working in Australia and Australians living overseas
How does Australia determine your tax residency?
The ATO uses several tests. The main one is the resides test — if you live in Australia permanently, you are a tax resident. There is also the domicile test (Australia is your permanent home), the 183-day test (you are in Australia for 183 days or more in a year), and the superannuation test (for government employees overseas). If you pass any one of these tests, you are treated as a resident for tax purposes.
What is the difference between resident and non-resident tax rates?
Residents get the tax-free threshold of A$18,200 and pay marginal rates from 19% to 45%. Non-residents have no tax-free threshold and pay 32.5% on every dollar from A$0 up to A$120,000, then 37% up to A$180,000, and 45% above that. On a A$100,000 salary, a resident pays about A$24,967 in tax while a non-resident pays about A$32,500 — a difference of over A$7,500.
Do non-residents pay the Medicare Levy?
No. Non-residents for tax purposes do not pay the 2% Medicare Levy. However, they also cannot access Medicare. If you are a resident from a country that has a reciprocal health care agreement with Australia (like the UK, New Zealand, or Ireland), you may access some Medicare services. Otherwise, you will need private health insurance, which can cost A$1,500 to A$4,000 per year.
What happens to Australian income when you move overseas?
If you become a non-resident, Australia only taxes your Australian-sourced income — like rent from Australian property, Australian employment income, or dividends from Australian companies. Your foreign income is not taxed in Australia. However, leaving Australia can trigger a CGT event on your worldwide assets unless you choose to defer it. Getting the timing of your departure right can save significant tax.
How do double tax agreements work?
Australia has tax treaties with over 40 countries to prevent you paying tax twice on the same income. If you are an Australian resident earning income in another country, you usually include it in your Australian tax return and claim a foreign income tax offset for tax paid overseas. For example, if you paid A$10,000 tax on UK rental income and your Australian tax on that income would be A$15,000, you only pay the A$5,000 difference to the ATO.
Do expats still need to pay Australian super?
If you work in Australia, your employer must pay the Superannuation Guarantee (11.5% in 2024-25) regardless of your visa type, unless you are on a short-term visit under certain conditions. If you leave Australia permanently and your visa has expired or been cancelled, you can apply to have your super released as a Departing Australia Superannuation Payment (DASP). This is taxed at 35% for working holiday visa holders or 65% on the untaxed portion.
What tax obligations do working holiday makers have?
Working holiday visa holders (subclass 417 and 462) pay a special flat rate of 15% on the first A$45,000 of income, then normal non-resident rates above that. Their employer must be registered with the ATO as a working holiday maker employer. These visa holders must lodge an Australian tax return at the end of the financial year. They can claim the same work-related deductions as other taxpayers.
What should expats do before leaving Australia?
Before you leave, lodge any outstanding tax returns, notify the ATO of your departure, and consider the CGT implications on your assets. Decide whether to keep or sell Australian investments. Review your super options. Cancel your Medicare enrolment if applicable. Keep records of your departure date and evidence of your new residence, as the ATO may ask you to prove when you stopped being a tax resident.
ATO-Aligned: Based on 2024-25 ATO rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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