Living in Australia: four residency tests and two scoring systems

The Australian Taxation Office (ATO) assesses tax residency using a primary test: actual residence. Three fallback tests are: domicile, presence for more than half the year of income, and a test specific to government employees. Its rules are separate from those of immigration. The tax brackets differ depending on whether you are a resident or not: non-residents have no tax-exempt threshold. This page provides the 2026-27 and 2025-26 tax brackets for residents and the latest published brackets for non-residents (2025-26), taken from the ATO website, and explains what it does not cover.

Four tests, only one of which is central

The main test: the actual residence («resides test»). The ATO states that if you reside in Australia, you are an Australian tax resident and the other tests do not need to be applied. It may consider the length of physical presence, the intent or purpose of the presence, behavior in Australia, family and business ties, the location of assets, and the organization of social life.

Three fallback tests. If you do not complete the primary test, you remain a resident if you complete one of the three legal tests.

Two points to remember. The half-year test refers to the "income year" and not the calendar year; the ATO gives the example of the year ending June 30, 2025. And the ATO writes that a person who does not sever their ties with Australia is treated as an Australian resident.

Two pricing scales: resident and non-resident

The amounts are in Australian dollars (A$). The ATO resident rates page (updated 13 August 2026) displays a 2026-27 table and a 2025-26 table. The ATO non-resident rates page (updated 1 June 2026) does not display a 2026-27 table: its last table is for 2025-26, and we are not extending it to 2026-27.

For non-residents, the first tax bracket ranges from 0 to 135,000 A$ at 30 cents per dollar. The ATO clarifies that resident rates do not include the Medicare contribution of 2 %. On its page dedicated to foreign and temporary residents, it states that non-residents do not have a tax-free threshold and do not pay the Medicare contribution; an exemption can be claimed on the tax return for days spent as a non-resident.

Temporary resident: a reduced declaration

The Australian Taxation Office (ATO) defines a temporary resident as someone who is also an Australian or foreign resident and meets certain conditions, including holding a temporary visa, provided that neither they nor their spouse are residents under the Social Security Act 1991. Temporary residents must declare their Australian-source income, gains from taxable Australian property, and certain overseas employment or service income. The ATO states that other foreign income and gains from property that are not taxable Australian property do not need to be declared.

Capital gains: the 50 % discount and non-residents

An individual can reduce their capital gains tax by 50% if they have held the asset for at least 12 months. The ATO states that the full rebate cannot be used for gains realized by non-residents or temporary residents after May 8, 2012, and that a prorated rebate is available for the period during which the individual was an Australian resident. The definition of taxable Australian property and the withholding tax on non-residents are not addressed here.

Australia and France: the convention settles the matter, France retains its criteria

If both Australia and France consider you a resident, the convention of June 20, 2006, differentiates between them: permanent home, center of vital interests, and then nationality. Our page on the convention details it. On the French side, Article 4 B of the French General Tax Code (CGI) considers as domiciled in France those individuals who have their home or principal residence there, those who carry out a professional activity there, whether salaried or not, and those whose center of economic interests is there. For professional activity, the criterion does not apply if the individual can prove that this activity is carried out in France on an ancillary basis; the burden of proof lies with the taxpayer. The French Tax Administration's Official Bulletin (BOFiP) also mentions a criterion relating to certain government employees on assignment abroad, which this page does not detail. It is sufficient for one of the criteria to be met. A presence of more than six months in the year is considered for principal residence, but is not an absolute criterion (BOI-IR-CHAMP-10, version of July 28, 2016).

What this page does not cover

Immigration, visas, Australian withholding tax on dividends, interest, and royalties paid by non-residents, taxable Australian assets, potential inheritance tax, social security, and Australian savings products are not covered: no readily available official source addressed these topics. The CLEISS fact sheet consulted, dated 2023/24, makes no mention of any France-Australia social security agreement. Australian regulations should be verified with a local professional.

Income of 120,000 A$: numerical example (fictitious profile)

Situation. A hypothetical individual receives a taxable income of 120,000 A$ in the tax year, with no other factors. Assumptions: excluding Medicare contribution, ATO rates above.

Issue. She wants to measure the tax resulting from the 2026-27 residents' tax schedule and the difference with the non-residents' tax schedule.

Strategy. It applies the 2026-27 resident table to 120,000 A$, then compares it to the 2025-26 scale, the only non-resident scale published by the ATO, comparing it to the resident table of the same year.

Result. Resident in 2026-27: 4,020 + 30 % of 75,000, i.e., 26,520 A$ (22.10 % of income). Resident in 2025-26: 4,288 + 30 % of 75,000, i.e., 26,788 A$ (22.32 %). Non-resident, last published table (2025-26): 30 % of 120,000, i.e., 36,000 A$ (30 %). Using the tax rates for the same year (2025-26), the difference is 9,212 A$. No 2026-27 variance is calculated because a 2026-27 non-resident table is not available on the ATO page. The Medicare contribution of 2 % is not included. The profile and amounts are fictitious.

What changes depending on your situation

• Your status with regard to the four tests, and the links you maintain with Australia or France.
• Your visa and whether or not you are a temporary resident.
• The nature of your income: employment, rent, dividends, capital gains.
• The holding period of your assets, for the delivery of 50 %.
• Your French tax residence during the year of the change.

The rule depends on your situation. No results are guaranteed.