As a temporary working visitor to Australia, it's crucial to understand the different tax rates that apply to you when lodging a tax return. Your tax residency status is determined by the Australian Taxation Office (ATO), who will assess your personal circumstances against a set of criteria. In this blog post, we'll explore the various tests the ATO uses to determine your tax residency status in Australia.
The Resides Test
The first test the ATO will use to determine your tax residency status is the resides test. This test assesses whether your regular daily activities are similar to those of an Australian citizen. The ATO considers several factors to determine if you meet the resides test criteria, including:
• Your intention of purpose for being in Australia
• Your family and business/employment ties to the country
• The location and maintenance of your assets
• Your social and living arrangements
If the ATO determines that your regular daily activities match those of an Australian citizen, you'll be taxed at the same rate as a resident.
The 183 Days Test
If you meet the resides test criteria, the next step the ATO will undertake is to determine if you've been in Australia for more than 183 days. If you have, you'll be considered a resident for tax purposes unless you have an usual abode outside of Australia or if you don't intend to take up residency in the country.
Superannuation Test
Finally, the ATO will assess your suitability to contribute to a Commonwealth of Public Sector Superannuation Scheme. If you are making contributions and meet the other criteria, you'll be considered a resident for tax purposes.
In conclusion, determining your tax residency status in Australia can be complex, and it's important to understand the various tests the ATO uses to make this determination. If you're still unsure of your tax residency status or need help lodging your Income Tax Return, get in touch with the iBusiness Group consultants today by calling 1300 587 985. This information has been sourced from the ATO's official website, so you can be confident in the accuracy of the information provided.
