How to file a non-resident tax return in Australia?

Updated on August 08, 2025

Jonathan Rose, an IRS Enrolled Agent with 15 years of expat tax experience, specializes in US tax preparation, tax planning, and tax advice for US citizens and Green Card holders living and working in Australia.

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Who needs to file a non-resident tax return in Australia as a US expat

There’s a good chance US expats need to file a non-resident tax return with the Australian Taxation Office (ATO).

Basically, if you’re considered a non-resident for tax purposes in Australia and you’ve made any money from Australian sources, you have a filing obligation. It doesn’t matter if you’re physically in Australia or not; what matters is where the income came from.

So, what kind of income triggers this?

Rental income from property in Australia
Wages or salary earned while working in Australia
Australian pensions, annuities, or super distributions
Capital gains from selling Australian real estate or shares
Business income tied to Australia

Even if it’s just a few thousand dollars in rent, you’re required to report it. And unlike Australian residents, non-residents don’t get the tax-free threshold, so your income gets taxed from the first dollar.

Some exceptions may apply for temporary residents with specific income types.

One upside? You won’t pay the Medicare levy, which usually applies to residents. Also, if you receive things such as interest, dividends, or royalties, and the right amount of withholding tax has already been deducted, you may not need to include those on your return.

Determining your Australian tax residency status

The Australian Taxation Office (ATO) uses a few different tests to determine this:

Resides test: This is the main one. If you’ve made Australia your home, like you live here most of the time, work here, or have your family here, you’ll likely be seen as a resident.
183-day test: Spent more than half the year in Australia? You might be a resident under this rule, unless it’s very clear your real home is somewhere else.
Domicile test: If your permanent home (your “domicile”) is in Australia even if you’re currently overseas, the ATO may still consider you a resident unless you can show you’ve permanently settled elsewhere.

If none of these apply, you’re generally seen as a non-resident for tax purposes, which changes how your income gets taxed. And for many US expats, that’s often the case, especially if you’re based overseas but have investments or income tied to Australia.

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Tax rates and obligations for non-residents vs residents

Non-residents don’t get the tax-free threshold that Australian residents enjoy. So, from the first dollar you earn, you’re paying tax at a flat rate.

For the 2024-25 tax year, the tax rates for non-residents are:

32.5% on the first AU$120,000
37% on income between AU$120,001 and AU$180,000
45% on anything over AU$180,000

Residents get more generous treatment, with a tax-free threshold of AU$18,200 and lower rates after that. They also might qualify for offsets and other credits, which non-residents don’t have access to.

If you’re a US citizen classified as a non-resident in Australia, you only report your Australian income on your Aussie tax return. So, for example, your US salary or income from US investments doesn’t get reported to the ATO.

But keep in mind, the IRS still expects to hear about all your worldwide income, including anything you earned in Australia.

It’s also worth noting that Australia and the US have a tax treaty, and that can sometimes help you avoid being taxed twice on the same income. That said, it’s still a good idea to talk to a tax professional who understands both systems.

Key forms, deadlines, and filing extensions

The main filing deadline for Australia is October 31 following the end of the tax year, which runs from July 1 to June 30.

As a non-resident, you’ll need to use the non-resident version of the individual tax return. The Australian Taxation Office (ATO) has a version specifically for people who don’t live in Australia full-time but still have taxable income coming from there.

When it comes to the type of income you’re reporting, it really depends on what you earned:

For employment income, use the relevant section of the return and include things such as wages or super contributions.
If you’re self-employed or a contractor, you’ll be reporting business income and might need to include more detailed records.
Rental income, dividends, or Australian pensions are all considered Australian-sourced income and must be reported.

Avoiding double taxation: US filing and tax credits

Even though you’ve already paid taxes on your Australian income, you still have to report that same income to the IRS.

To avoid paying tax twice on the same income, here’s what US expats can do:

Claim the Foreign Tax Credit by filing Form 1116. This allows you to get credit for the Australian taxes you’ve already paid, and apply that amount against your US tax owed.
Another option is the Foreign Earned Income Exclusion, or FEIE (Form 2555). This lets you exclude up to US$130,000 (for tax year 2025) of earned income from your US tax return, as long as you meet certain criteria. That could include wages or self-employment income, but not passive income like rent or dividends.

Note that US tax credits may not always fully eliminate double taxation depending on timing and currency effects.