Byron Bay

Salary from a foreign employer or fees from foreign clients

TaxedResidents 0%–45% (15% from $18,201 in 2026–27) plus 2% Medicare levy; foreign residents 30%–45% from the first dollar; working holiday makers 15% up to $45,000

Salary or fees for work you physically do in Australia are Australian-source income, even when the employer or client is abroad and pays into a foreign account, so the temporary-resident exemption does not cover them. Residents pay the 2026–27 resident scale: nothing up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy. Temporary residents who are not entitled to Medicare can claim a full levy exemption with a Medicare Entitlement Statement from Services Australia, but only if their spouse and dependants are also exempt. Foreign residents (most short-stay visitors) have no tax-free threshold and pay 30% up to $135,000, 37% to $190,000 and 45% above (2025–26 table; the 2026–27 table was not yet on the ATO page on 27 October 2026), with no Medicare levy. A tax treaty may exempt an employee's salary if they are a treaty resident elsewhere, spend no more than 183 days in Australia (the period depends on the treaty), and are paid by a foreign employer with no Australian permanent establishment bearing the cost; beyond that, the salary is taxable here. A foreign employer of someone working in Australia may have to withhold PAYG tax and will usually have to pay the 12% super guarantee into an Australian fund, even when no tax is withheld, unless a bilateral social security agreement applies (ATO guidance last updated December 2020); temporary visa holders can reclaim that super when they leave. Freelancers serving foreign clients from Australia are taxed on the same scales and must register for GST once GST turnover reaches $75,000. Tax paid abroad on the same income can be credited through the foreign income tax offset. Visitor visas and ETAs do not allow work in Australia (see nomadVisa).

On the nomad visa

Australia has no digital nomad or remote-work visa. Visitor visas (subclass 600, eVisitor 651 and the ETA 601) are for tourism, family visits and limited business visitor activities, and Home Affairs states that a Visitor visa or ETA does not allow you to work in Australia. No official Home Affairs page we found makes an exception for remote work for an overseas employer; migration agents describe an unpublished policy tolerating limited online work, which could not be verified, so do not rely on it. Working holiday visas (417 and 462) do allow work, and their holders pay working holiday maker rates on income earned in Australia. For tax, a short-stay visitor is usually a foreign resident, but any pay for work done in Australia is still Australian-source.

Dividends, interest, gains, rent and pensions from abroad

Not taxed

Almost every newcomer holds a temporary visa. A temporary resident, whether a tax resident or a foreign resident, does not declare foreign dividends, interest, rent, pensions or capital gains on assets that are not taxable Australian property, such as foreign shares or a house abroad. Australian-source investment income is taxed: a foreign resident has tax withheld from Australian interest and dividends as a final tax, while a tax resident adds it to income at the resident rates. Gains on taxable Australian property (Australian real estate and business assets used in Australia) are taxed for everyone, and foreign and temporary residents cannot use the full 50% CGT discount on gains made after 8 May 2012. Foreign residents also lose the main residence exemption on an Australian home unless the life events test applies. The picture changes once you get permanent residence or citizenship: you are then taxed on worldwide investment income at the resident rates, with the 50% discount on assets held at least 12 months and a foreign income tax offset for tax paid abroad. From 1 July 2027 the 50% discount is replaced by inflation indexation of the cost base and a minimum 30% tax on real gains, for gains accruing from that date, under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026; investors in new residential builds can keep the 50% discount. The Act makes indexation unavailable to foreign and temporary residents.

Net wealth and inheritance

No wealth taxNo inheritance tax

Australia has no net wealth tax and the ATO states there are no inheritance or estate taxes; CGT can apply later when a beneficiary sells an inherited asset. Property is taxed by the states: transfer (stamp) duty on purchases and annual land tax, with extra surcharges for foreign persons, which usually include temporary visa holders. In New South Wales, for example, a foreign person pays 9% surcharge purchaser duty on residential property on top of normal transfer duty. From 1 April 2025 to 30 June 2029, foreign persons, including temporary residents who want a home to live in, are banned from buying established dwellings, subject to limited exceptions; new dwellings and vacant land need Foreign Investment Review Board approval. Residents entitled to Medicare who have no private hospital cover pay a Medicare levy surcharge of 1%–1.5% once income for surcharge purposes exceeds $105,000 (single, 2026–27).

Tax resident after

183 days a year

Top income tax rate

47%

When you become tax resident

The income year runs from 1 July to 30 June. You are an Australian tax resident if you pass any of four tests. The main one is the resides test: whether you live in Australia in the ordinary sense, judged on presence, purpose, family, work, assets and living arrangements. The ATO treats 6 months as a considerable time, and someone on a 12-month lease with local bank accounts is likely resident even if they say they will leave. The 183-day test makes you resident if you are physically in Australia for more than half the income year, unless your usual place of abode is overseas and you do not intend to take up residence. The domicile test (permanent home in Australia) and the Commonwealth superannuation test (government staff posted abroad) rarely matter for newcomers. A tourist whose visa only allows a short stay is generally not resident, even after 6 months. Tax residency is separate from your visa: you can be a tax resident on a temporary visa. If you also hold a temporary visa and neither you nor your spouse is an Australian citizen or permanent resident, you are additionally a temporary resident, which exempts most foreign income (see regimes). Part-year residents get a reduced tax-free threshold of at least $13,464.

Top income tax rate

Sydney, 2026–27: 45% on taxable income above $190,000 plus the 2% Medicare levy, for 47%. There are no state or local income taxes, so the rate is the same across Australia. Higher earners without private hospital cover also owe the Medicare levy surcharge, for up to 48.5% (not counted). The 45% rate applies to residents and foreign residents alike (2025–26 and 2026–27); foreign residents do not pay the Medicare levy. The resident rate on income from $18,201 to $45,000 fell from 16% in 2025–26 to 15% in 2026–27.