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Australia Income Tax

The first question which comes to mind of every individual whoever aspires to apply for Australia PR visa or work in Australia is whether he or she is liable to pay income Tax in Australia?


The Australia taxation office (ATO) clearly specifies that the taxability of an individual in Australia depends on an individual’s residential status or the type of Australia Visa he or she holds.


According to the Australia Income Tax law, individuals who are holding an Australia PR visa, Australia Temporary resident visa, Australia work permit and even foreign citizens working in Australia are liable to pay Australia Income Tax.


Let us understand the categories of individuals who fall under the taxability bracket of Australia Income Tax.


Australia PR visa holders or permanent residents of Australia

  • Australia PR visa holders or permanent residents of Australia who have a permanent place of residence in Australia are liable to pay Australia Income Tax.

  • Individuals who have been working in Australia for a period of more than 6 moths or for at least 183 days or more within a financial year are considered to be permanent residents of Australia and are liable to pay Australia Income Tax.

  • Any employee who is entitled to the benefits of superannuation funds E.g. Pension funds as per the Federal public servants Act in Australia is considered to be permanent resident of Australia and is liable to pay Australia Income Tax.

In conjunction to the above, Individuals in Australia working with an Australian employer under a contractual employment of more than 6 months in a financial year, are also considered permanent residents in Australia and are liable to pay Australia Income Tax.


Australia Temporary Resident visa holders liable to pay Income Tax in Australia are:-

  • Any overseas student in Australia who is enrolled in the study course of any Australian University for a time period of more than six months long and is working during his study course in Australia is liable to pay Australia Income Tax.

  • Overseas Individuals who hold an Australia Temporary Resident visa and have migrated to Australia during any income year with an intention to reside in Australia are liable to pay Australia Income Tax.

  • Any individual or body of individuals who have been granted Australian temporary visa under the Migration Act 1958 of the Australian government.

  • Any individual who has been working and residing in Australia but does not have a spouse, one who is not an Australian citizen is also considered to be a temporary resident of Australia and is liable to pay Australia Income Tax

Foreign citizen working in Australia liable to pay Australia Income Tax are:-

  • If an individual is visiting Australia and for most of the time he or she is travelling across different locations in Australia, the individual is considered to be an Australia foreign resident.

  • An individual who is on a vacation in Australia or visiting Australia for a period of less than 6 months during a financial year for any reason whatsoever it may be, are considered to be foreign residents of Australia.

  • Any individual who has been an Australian citizen or an Australian permanent resident in the preceding income years and leaves Australia permanently to settle down abroad but still has income generating assets in Australia are considered to be foreign residents of Australia for tax purposes from the date of departure.

To know about the Australia Income Tax slabs, click Here

To know ways how to save Australia Income Tax click Here

To know about the future Income tax slabs in Australia click Here

To know about international taxation implications for foreign citizens click Here