As an Australian expat, getting your tax right isn’t optional — it’s what protects your property wealth. Whether you’re paying too much, missing deductions, or unsure of your residency status, the ATO has rules that catch expats out every year.
Australian Expat Tax: What You Need to Know
The ATO classifies most Australians living abroad as foreign residents for tax purposes. This changes how your income is taxed, what deductions you can claim, and what happens to your investment property.
Key Tax Issues for Australian Expats
- Tax residency status — Are you a resident or foreign resident? This single determination affects your entire tax position.
- Capital Gains Tax (CGT) — Foreign residents lose the 50% CGT discount. From 1 July 2027, new legislation replaces the 50% CGT discount with cost-base indexation; residents can still use the discount for gains accrued before that date, and foreign residents generally cannot access it. If you own Australian property, this matters.
- Rental income — Australian rental income is taxable in Australia regardless of where you live.
- Main Residence Exemption — The rules changed in 2020. Most expats can no longer claim this exemption on their Australian home.
- Foreign income — Generally not taxable in Australia for foreign residents, but residency must be established correctly.
- DASP — If you’ve left Australia permanently, you may be able to claim your superannuation.
Why Expat Tax Needs a Specialist
General accountants aren’t trained in Australian expat tax law. The rules are specific, the ATO audits expats, and the cost of getting it wrong — especially on property — can be significant. ODIN Tax is a specialist expat tax firm. Our tax agents work exclusively with Australian expats across HK, Singapore, UAE, UK, USA and beyond.
ODIN Tax: Specialist Australian Expat Tax
ODIN Tax handles Australian tax returns, residency advice, CGT planning, rental property tax, and more — all specifically for Australian expats. Our clients aren’t worried about tax. They’re focused on building wealth.
