Assuming a foreigner is on a 6+ month contract starting from June (so they will spend more than 183 days in Australia in the tax year 2017), can they claim residency immediately after moving rather than receiving a refund at the end of the year?

The question is important because the tax rates are a lot higher for non-residents, so it will be nice to receive a salary with lower deductions from the very beginning.

  • I have no idea how Australian tax calculations work but as a general rule, the government charges income tax before hand and then if you are eligible for a refund, it provides you with that.
    – Dipen Shah
    Commented May 2, 2017 at 17:52

1 Answer 1


The 183-day rule is only one of a number of tests to determine Australian tax residency. If you satisfy any of the other tests of residency, then you are considered a tax resident.

The ATO has a helpful tool to determine whether you are a tax resident.

It should be noted that the lower (resident) tax rate only applies from the day you arrive in Australia with the intention of becoming an Australian tax resident.

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