Appendix A

Taxing the Visitors: Non-Residents

N on-residents of Australia are liable to pay tax only at non-resident rates on income that comes from an Australian source, such as salary and wages, business profits and rental income (see Figure A-1). However, a non-resident isn’t liable to pay a 2 per cent Medicare levy and he or she can’t claim domestic tax offsets (rebates) and the tax-free threshold.

bappf001.png
Figure A-1: Income sourced in Australia by non-residents.

You can be treated as a tax resident as soon as you’re in Australia for more than 183 days. However, this isn’t the case if the Tax Office is satisfied that your permanent place of abode is outside of Australia and you have no intention to live here. If you’re an overseas student and you enrol at an Australian institution in a course that takes more than six months to complete, you’re usually considered a resident of Australia for tax purposes while you’re here (refer to Chapter 1).

The income tax rates for non-residents of Australia are shown in Table A-1.

Table A-1 Individual Income Tax Rate for Australian Non-residents, 2014–15

Taxable Income

Marginal Tax Rates

$0–$80,000

32.5%

$80,001–$180,000

37%

Over $180,000

45%

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