Coronavirus and Australian Tax Residency- Australian Expats

This blog article talks about Coronavirus and Australian Tax Residency.

Are you an Australian expatriate currently facing a temporary stay in Australia or temporarily moving to Australia because of the Coronavirus?

The good news is that the ATO is adopting a practical and pragmatic approach if you are normally a non-resident who usually lives overseas, however you have had to return to Australia on a temporary basis.

The ATO recently issued guidance, asserting that an Australian expatriate residing in Australia due to the Coronavirus should not qualify as an Australian tax resident.

Moreover, the ATO has stated that expatriates working in Australia for up to three months due to COVID-19 should not consider their income as originating from Australia and, consequently, should not be subject to Australian tax.

It would be interesting to observe how the ATO views expats who stay in Australia for more than three months or 183 days due to the Coronavirus, and whether the ATO still regards them as non-residents of Australia.

Please watch this space for further information once released by the ATO.

Please do not hesitate to get in contact with us to discuss your circumstances further and we would be happy to assist you further.

Take care all.