What is an Australian “Tax Residents”? A Guide on Tax Changes Australia
Whether you’re permanent resident or non-resident in any country, your first question should always be the same, what is this GST? At least, you should know the basics of GST, GST on imports Australia, and GST Changes Australia. Well, goods and service tax are also known as GST which is a 10% tax charged in Australia on the majority of products. One of the very first questions you are asked on your individual tax return is obvious, are you an Australian resident?
It may seem strange and unusual at a glance but the Import tax Australia office view residency in an entirely different way to other Australian governmental companies that deal with things like citizenship, visas, and immigration. No matter, whether you are defined as an Australian resident income tax purposes which have no impact on your passport or even if your status is as a permanent resident or vice versa.
The undeniable truth is that the Tax Office is only interested in your earnings, and uses the term “resident for tax purposes” to decide how much you should be taxed for an income year. Let’s have a deep insight into the Tax Changes Australia.
So, what is an Australian “tax resident”?
Basically, the tax officer considers you as an Australian resident for tax purpose in below scenarios:
- If an individual always lived in Australia or he/she has to come to Australia to live
- If the case is, he or she has been in Australia for more than half of the income year. Like an example, if you are a working holidaymaker.
- If in case an overseas student enrolled in a study course of more than six months.
Let me tell you, you may still remain a tax resident even though you are not physically in Australia. Like an example, if you go overseas on an extended holiday. One another situation is if you have moved to Australia from overseas and intend to stay for the foreseeable future and tighten up the connection with Australia where you may be an Australian resident for tax purposes.
The tax law includes a bunch of tests just to determine your status. But if you “reside” in Australia under the usual meaning of the word then you don’t have to look at any of the tests. If you have any questions or doubts regarding your status as a tax resident then without taking much of the time, you should ask this to the office.
Why is tax residency important?
The actual reason behind the Tax Office gives such weight to residency is that a person’s status as a resident or not can make a difference for tax purposes as the law treats residents and non-residents differently.
Wrapping this up!
Import tax Australia law changes with time and this is the reason, you have to be up-to-date while you are holding any of the country’s residency. Contact GST office in case of deep information about GST on imports Australia because it may vary from resident to non-resident. Stay smart & active!