In Australia, tax laws for immigrants depend on whether you are classified as a foreign resident or a temporary resident for tax purposes. Here are the key points:
Foreign Residents
Income Declaration: You must declare any income earned in Australia, including employment income, rental income, Australian pensions, and capital gains on Australian assets1.
Tax-Free Threshold: You are not entitled to the tax-free threshold, meaning you pay tax on every dollar of income earned in Australia2.
Medicare Levy: You do not pay the Medicare levy1.
Interest, Dividends, and Royalties: You do not need to declare Australian-sourced interest, dividends, or royalties if the Australian financial institution or company has already withheld tax1.
Temporary Residents
Income Declaration: You only need to declare income derived in Australia and some income from employment or services performed overseas while you are a temporary resident1.
Foreign Income: Other foreign income and capital gains do not need to be declared1.
Exemptions: Temporary residents are generally exempt from Australian tax on foreign-source investment income and capital gains on assets that are not taxable Australian property2.
General Information
Tax Year: The Australian tax year runs from 1st July to 30th June, with tax returns due by 31st October2.
Tax Rates: Australian tax residents generally pay a lower rate of tax compared to foreign tax residents2.
If you need more specific advice, it’s a good idea to consult with an Australian tax specialist
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