Tax residency is crucial for understanding Australian tax obligations, especially for individuals with foreign income or assets. Australian residents are taxed on worldwide income, including foreign income, with credits available for taxes paid overseas under double tax agreements. The Bongiorno Group’s Tax Manager Chantelle Turner and Director Nick Fennessy explain the four tests which assess tax residency. They include: the ordinary concepts test, which examines residency intent and ties to Australia; the domicile test, focusing on a permanent place of abode; the 183-day test, considering time spent in Australia; and the superannuation test, relevant to government employees abroad. Non-residents face higher tax rates and lose certain benefits like the capital gains discount.
 
 
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