Australia: tax residency & income tax rates

Tax residency rules in Australia

As of 2026, Australia’s tax-residency test centres on a presence threshold of 183 days^ⓘPwC Worldwide Tax Summaries“Individuals who have actually been in Australia for more than one-half of the income year (i.e. at least 183 days in the income year), unless the individual's usual place of abode is outside Australia and the individual does not intend to reside in Australia.”View source · accessed 2026-09-08. Under the 183-day test a person is generally an Australian tax resident if they are physically present in Australia for at least 183 days in the income year. It does not apply if the person's usual place of abode is outside Australia and they do not intend to reside in Australia.

Resident worldwide income basis

A resident individual is taxed on worldwide income from both Australian and foreign sources. Certain foreign income and gains of temporary residents are excepted. [source]PwC Worldwide Tax Summaries“A resident individual is subject to Australian income tax on a worldwide basis, i.e. income from both Australian and foreign sources (except for certain foreign income and gains of temporary residents”View source · accessed 2026-09-08

Non resident source basis

Foreign residents are taxed only on income derived from Australian sources plus certain statutory income such as some capital gains. They receive no tax-free threshold, so the non-resident scale charges 30 percent from the first dollar. [source]PwC Worldwide Tax Summaries“A non-resident individual is liable to Australian income tax only on income (other than interest, royalties, and dividends, which are generally subject to withholding tax [WHT]) derived from sources in Australia, and certain statutory income that is taxable on a basis other than source (e.g. certain capital gains).”View source · accessed 2026-09-08

Residency tests

Australia applies four alternative individual residency tests. A person is resident under the ordinary resides test, or if their domicile is in Australia (unless their permanent place of abode is outside Australia), or under the 183-day test, or under the Commonwealth superannuation test. Satisfying any one test makes the person a tax resident. [source]PwC Worldwide Tax Summaries“Individuals are residents of Australia if they reside in Australia”View source · accessed 2026-09-08

Income tax rates in Australia

As of 2024, the headline personal income tax rate in Australia is 45%^ⓘPwC Worldwide Tax Summaries“190,000 | – | 51,638 | 45.0”View source · accessed 2026-09-08. The top marginal personal income tax rate for residents is 45 percent on taxable income above AUD 190,000. The 2 percent Medicare levy is charged separately and is not included in this rate.

Tax free threshold

EUR 18,200 (as of 2026)^ⓘPwC Worldwide Tax Summaries“0 | 18,200 | – | 0”View source · accessed 2026-09-08 — Resident individuals pay no income tax on the first AUD 18,200 of taxable income. Foreign residents do not get this threshold.

Non resident income brackets

30–45% (as of 2024)^ⓘPwC Worldwide Tax Summaries“0 | 135,000 | – | 30.0”View source · accessed 2026-09-08 — Foreign residents are taxed at 30 percent from the first dollar up to AUD 135,000, then 37 percent to AUD 190,000, then 45 percent. They are not liable for the Medicare levy.

Medicare levy

2% (as of 2026)^ⓘPwC Worldwide Tax Summaries“The Medicare levy is currently 2%.”View source · accessed 2026-09-08 — Most resident taxpayers pay a Medicare levy of 2 percent of taxable income on top of the income tax rates. This levy funds public health and is separate from the marginal tax scale.

Medicare levy surcharge

A Medicare levy surcharge of between 1 percent and 1.5 percent applies to high income taxpayers who lack registered private hospital cover for themselves and their dependants. It is in addition to the ordinary 2 percent Medicare levy. [source]PwC Worldwide Tax Summaries“A surcharge of between 1% and 1.5% applies to high income taxpayers where the taxpayer and their dependants are not covered by a private health insurance fund registered in Australia that provides basic hospital cover.”View source · accessed 2026-09-08

Vat standard rate

10% (as of 2000)^ⓘPwC Worldwide Tax Summaries“The federal government levies goods and services tax (GST) at a rate of 10%.”View source · accessed 2026-09-08 — Australia's value added tax is the goods and services tax (GST), levied by the federal government at a rate of 10 percent.

Pit income brackets

0–45% (as of 2024)^ⓘPwC Worldwide Tax Summaries“0 | 18,200 | – | 0 ; 18,200 | 45,000 | – | 16.0 ; 45,000 | 135,000 | 4,288 | 30.0 ; 135,000 | 190,000 | 31,288 | 37.0 ; 190,000 | – | 51,638 | 45.0”View source · accessed 2026-09-08 — These are the resident individual rates in force for the year ending 30 June 2026, reflecting the redesigned Stage 3 cuts that lowered the first rate to 16 percent from 1 July 2024. The figures exclude the separate 2 percent Medicare levy.

Capital gains tax

Resident individuals include only 50 percent of a nominal capital gain in taxable income where the asset has been held at least 12 months. Non-residents lost that discount for gains accruing after 8 May 2012, and the main residence exemption does not apply to foreign residents except in limited life-event cases. [source]PwC Worldwide Tax Summaries“If the asset was acquired on or after 11:45 am AEST on 21 September 1999 and has been held for at least 12 months, for disposals up to and including 30 June 2027, a discount applies such that 50% of the nominal gain (with no indexing of costs for inflation) is included in the individual's taxable income.”View source · accessed 2026-09-08

Special tax regimes in Australia

Temporary residents, meaning certain temporary visa holders, are largely exempt from Australian tax on foreign-source income and on most foreign capital gains, unlike ordinary residents who are taxed on worldwide income. This is the key concession for many expatriates working in Australia. [source]PwC Worldwide Tax Summaries“A temporary resident will be exempt from Australian tax on foreign source income, while a resident of Australia is subject to tax on worldwide income.”View source · accessed 2026-09-08

Upcoming individual tax changes

Further legislated tax cuts apply to resident individuals from 1 July 2026, alongside a standard tax deduction of up to AUD 1,000 without substantiation from the same date. A Working Australians Tax Offset of up to AUD 250 for residents with net labour income follows from 1 July 2027. [source]PwC Worldwide Tax Summaries“The government's legislated tax cuts apply to resident individuals effective from 1 July 2026.”View source · accessed 2026-09-08

Digital nomad visa in Australia

No (as of 2026)^ⓘThe Executive Centre“Although there isn't a specific 'Digital Nomad Visa' in Australia”View source · accessed 2026-09-08 — Australia has no dedicated digital nomad visa. Remote workers instead rely on other categories such as the Working Holiday or Work and Holiday visas for younger travellers, or a Visitor visa that generally tolerates remote work for an overseas employer.

Frequently asked questions

Sources

• PwC Worldwide Tax Summaries individual / residence · big4, accessed 2026-09-08
• Australian Taxation Office (ATO) residency tests / residency the 183 day test · tax_authority, accessed 2026-09-12
• PwC Worldwide Tax Summaries individual / taxes on personal income · big4, accessed 2026-09-08
• Australian Taxation Office (ATO) tax rates and codes / tax rates australian residents · tax_authority, accessed 2026-09-12
• PwC Worldwide Tax Summaries individual / other taxes · big4, accessed 2026-09-08
• PwC Worldwide Tax Summaries individual / significant developments · big4, accessed 2026-09-08
• The Executive Centre blog article / australia digital nomad requirement visa tax · other, accessed 2026-09-08
• PwC Worldwide Tax Summaries individual / income determination · big4, accessed 2026-09-08

Explore more

• Not sure you count as resident? Am I a tax resident of Australia?
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• Planning your days in Australia? Track them with the free 183 Days residency tracker — it checks your travel log against verified thresholds like the ones on this page.

When to talk to an advisor

This page maps Australia’s general rules — it cannot weigh your treaty position, your family and asset ties, or the timing of a move. If meaningful money depends on the answer, have a qualified advisor in Australia (and in your home country) review your situation before you act.