Planning a move overseas is exciting, but it can also raise an important question: will you still be treated as an Australian tax resident after you leave?

There is no automatic rule that makes you a foreign resident simply because you spend more than 183 days overseas. Your position depends on how your life is arranged before and after the move. Getting this right matters because Australian residents are generally taxed on worldwide income, while foreign residents are generally taxed only on Australian-sourced income and certain Australian assets.

It is about where your life is based

The ATO looks at the overall picture, including:

  • where you and your family live;
  • whether you keep a home available in Australia;
  • where you work and earn your income;
  • where your assets and financial affairs are located;
  • why you are moving and how long you expect to stay overseas; and
  • whether your day-to-day arrangements show that you have genuinely established a life overseas.

Australia has four statutory residency tests. In many cases, the practical questions are whether Australia continues to be home in an ordinary sense and, if you have an Australian domicile, whether you have established a permanent place of abode overseas.

What the cases tell us

Four cases show how different work, home and family arrangements can produce different outcomes.

Bulie—Singapore: In Bulie and Commissioner of Taxation [2026] ARTA 1003, Mr Bulie moved to Singapore for a senior oil-trading role while his wife and youngest child remained in Sydney. He was resident in both countries under their domestic laws. Under the Australia–Singapore tax treaty, the Tribunal treated him as resident of Singapore because his employment and main source of income gave him closer overall personal and economic relations with Singapore. The lesson is that domestic residency and treaty residency can produce different answers.

Shord—overseas work with an Australian home base: In Shord v Commissioner of Taxation [2016] FCA 761, the taxpayer worked on overseas oilfield assignments but regularly returned to Western Australia. His wife remained in their jointly owned home and his earnings were paid into an Australian bank account. He remained an Australian resident because his pattern of living showed that Australia continued to be his home base.

Quy—Dubai: In Quy v Commissioner of Taxation [2026] FCA 1316, the taxpayer lived and worked in Dubai for around five years while his wife and children remained in the family home in Australia. His overseas accommodation and work arrangements did not establish a sufficiently permanent home outside Australia, particularly given his continuing family, property and financial connections here. He remained resident under the domicile test. The lesson is that a long period overseas may not be enough if the overseas arrangements remain temporary in character.

Harding—Bahrain: In Harding v Commissioner of Taxation [2019] FCAFC 29, the taxpayer left Australia to live indefinitely in Bahrain and established his life in the Middle East. He moved his possessions, arranged for his family to join him and no longer treated Australia as home. He ceased Australian residency. The Court confirmed that a permanent place of abode can be a country or region rather than one particular dwelling, provided the person has genuinely settled there.

Together, the cases show that no single fact decides residency. The outcome depends on the full picture—particularly where your family and home are located, whether your overseas arrangements are settled or temporary, where you work and earn income, and whether a tax treaty applies.

Tax matters to consider before you leave

A move overseas can affect more than your annual tax return:

  • Departure CGT: Australia may treat you as having sold certain non-Australian assets at market value when your residency ends. You may be able to defer the gain, although this can keep those assets within the Australian CGT system.
  • Australian income and assets: You may still pay Australian tax on Australian-sourced income and taxable Australian property after becoming a foreign resident.
  • Tax concessions: You may lose the tax-free threshold and access to some offsets and concessions. Restrictions can also apply to the CGT discount and main residence exemption.
  • Companies, trusts and superannuation: Your move may affect the residency or management of related entities, trust distributions and self-managed superannuation compliance.
  • Tax in your new country: Your destination country may also tax your income or gains. A tax treaty may allocate taxing rights or provide relief from double taxation.

How we can help

If you are considering a move overseas, we can help you understand your likely residency position, identify the Australian and overseas tax issues, and put the right steps and documentation in place before you leave.