Do I need to lodge a tax return?

If you are born in Australia and live in Australia then you are a resident for tax purposes. It is also very possible for you not to be living in Australia but still be a resident for tax purposes.

If you are away from Australia for an extended period of time for example 18 months or more but you still maintain your bank accounts, cars property you may still be a resident for tax purposes. Your connection to Australia is still what may make you a resident for tax purposes.

If you have arrived in Australia and intend to stay for the foreseeable future and in the meantime you have set up connections with Australia, then you may be considered a resident for tax purposes.

Residency for tax purposes can be difficult to establish in some instances.

Australian residents for tax purposes must declare income earned from anywhere in the world in their tax returns. Non-residents only need to declare income earned in Australia.

If you are an Australian resident for tax purposes you:

• Are entitled to the tax free threshold
• Can claim tax offsets
• Generally you have a lower tax rate then non residents

If you are a non-resident for tax purposes you:

• You have a tax free threshold of $1.00
• Cannot claim most tax offsets
• Do not pay a Medicare levy

Call Tax Matters to assist you with working out your residency for tax purposes.