Tax Return PerthTax Return Perth
Living in Australia as a non-resident? Do you also feel like being lost while going through the tax system of Australia? Dont be upset; you are not the only one. With its unique rules and requirements, it’s easy for people
to make mistakes when it comes to filing a non-resident tax return in Australia. Whether you’re an expat, or working holidaymaker, or living in Australia as a temporary resident, knowing how the Australian tax works for non-residents is important to stay on good terms with the Australian Taxation Office (ATO).
This article emphasises the seven most non-resident tax return mistakes and also provides useful tips to make your tax return factual and stress-free.
To determine tax non-residency in Australia, the ATO tax residency rules consider where you live, how long you have been here, and your connections to Australia. Given that you are not a resident and visit Australia for fewer than 183 days between July and June, then you are most likely a non-resident. Other factors, such as staying or monetary connections, can come into consideration as well.
Australian income tax is charged to non-residents at higher tax rates (32.5% for income up to AUD 120,000 in 2025) and doesn’t include the non-resident Medicare levy. Following are the common errors of non-resident tax returns and how to prevent them.
Here are seven common tax mistakes non-residents make when filing taxes in Australia and how to avoid them.
One of the most serious non-resident tax return errors is the wrong declaration of your tax residency status. The ATO rules of tax residency are complex, and it’s easy for many non-residents to incorrectly think that they’re residents or vice versa.
For instance, a 417 or 462 visa working holidaymaker might think of resident status because they’re staying overseas for a long time, but the ATO tends to treat them as non-residents. This kind of mistake can attract the wrong tax rates, omit deductions, or incur penalties.
Why it matters: Different tax rates are charged to non-residents, and no tax-free threshold (AUD 18,200 for residents in 2025) can be claimed. Misstating your status can lead to underpaying or overpaying taxes, which will attract ATO’s attention.
Only Australian-sourced income is taxed for non-residents, but ignorance of what foreign income in Australia means can cause mistakes. For example, income from international investments or work might have to be reported if it’s related to your Australian activities. Non-residents also tend to neglect double taxation agreement Australia clauses, which avoid double taxation but need to be reported.
Why it matters: Failure to report foreign income properly can result in ATO non-resident tax rule non-compliance, including fines or losing the opportunity to claim tax relief under international treaties.
The due date of a non-resident tax return is generally October 31 for self-lodgers, but people who hire a tax agent for non-residents may have due dates of up to May 15 in the next year. Most non-residents do fail these dates as they are not familiar with the Australian tax calendar or take time to access foreign income records.
Why it is important: Late lodgement will attract penalties from as low as AUD 330, rising depending on the length of the delay. Timely submission guarantees compliance and increases your likelihood of an easy non-resident tax return Australia.
Most don’t claim these because of insufficient knowledge or unawareness regarding entitlement. An example would be a working holiday tax return where work-related travel or equipment might be claimed as deductions, but only with proper documentation.
Why it’s important: Overpaying taxes can be avoided by not missing deductions. Non-residents must pay close attention to expenses and seek the best tax accountant Perth or anywhere else for eligible claims identification.
Trying to file non-resident tax return without the use of professional services is a mistake, particularly since tax obligations for non-residents are complicated. A registered tax agent knows how to deal with ATO non-resident tax conditions, remain compliant, and maximise your return.
Why it matters: Professional tax agents save time, minimise errors, and usually achieve better results. For example, a professional-prepared Australian tax return for expats is more likely to qualify for the best deductions and prevent ATO penalties.
Non-residents are charged on Australian assets such as property or shares on capital gains. Most of them misreport or fail to report capital gains, especially from the disposal of property.
Why it’s important: Not treating capital gains rightly can lead to high tax charges or fines. Non-residents should be aware of how real estate is taxed and seek the help of experts to prevent non-compliance.
Many non-residents, especially those who are lodging a working holiday tax return, are entitled to Tax refund for non-residents but receive none because of over-taxation rates or no deductible amounts. Non-residents don’t enjoy the tax-free threshold benefit that residents enjoy, so refunds are not expected unless major deductions are involved.
Why it matters: Misconceptions can result in frustration and ineffective tax planning. It is necessary to know your entitlement for a refund in order to exercise effective tax planning.
Filing an Australian non-resident tax return does not have to be daunting, but avoiding non-resident tax return mistakes has to be mastered and organized.
With an understanding of how tax residence in Australia operates, reporting all the income correctly, hitting the deadline, claiming allowable tax deductions, and seeking professional help, non-residents can feel confident while navigating the ATO non-resident tax system.
Get in charge of your non-resident tax today and have your non-resident income tax return accurate, compliant, and optimised to your financial advantage.
