Relocation tax guideMoving to Australia: Taxes for Expats 2026
Australia taxes residents on worldwide income at marginal rates up to 45% (47% with the Medicare levy), with capital gains taxed at marginal rates after a 50% discount for assets held over a year, and no inheritance tax. Holders of a temporary visa get a concession: most foreign income and gains are exempt. Residency is decided by several tests, including a 183-day test.
Australia has no special low-tax regime, but it does treat people on temporary visas favourably: while you are a temporary resident, most of your foreign income and gains sit outside Australian tax. There is also no inheritance tax, though capital gains are taxed. This guide explains the temporary-resident concession, how residency is decided, and the headline rates.
Australia: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 30%25% for base rate entities (aggregated turnover under AUD 50m) | PwC Worldwide Tax Summariesas of 2025-12-19 |
| Top personal income tax | 45%Top marginal rate; 47% including the 2% Medicare levy | PwC Worldwide Tax Summariesas of 2025-12-19 |
| VAT / GST (standard) | 10%Goods and services tax (GST) | PwC Worldwide Tax Summariesas of 2025-12-19 |
| Capital gains | Taxed at marginal rateIncluded in assessable income; 50% discount for assets held over 12 months | PwC Worldwide Tax Summariesas of 2025-12-19 |
| Inheritance / wealth tax | NoNo inheritance or estate tax | PwC Worldwide Tax Summariesas of 2025-12-19 |
The Temporary resident concession regime
Available to temporary-visa holders who are not Australian residents for social-security purposes (i.e. not citizens or permanent residents).
An Australian tax resident who holds a temporary visa is generally taxed only on Australian-source income plus employment income earned while a temporary resident. Most foreign investment income is exempt, and foreign capital gains are exempt except on 'taxable Australian property' (mainly Australian real estate). The concession ends when you become a permanent resident or citizen.
- Most foreign investment income is exempt from Australian tax while you are a temporary resident.
- Foreign capital gains are exempt except on taxable Australian property (chiefly Australian real estate).
- Australian-source income and employment income earned while temporary-resident are still taxed at normal rates.
- The concession ends on becoming a permanent resident or citizen - from then, worldwide income is taxed.
Source: PwC Worldwide Tax Summaries - Australia (as of 2026-06-24).
| Item | Temporary resident | Ordinary resident |
|---|---|---|
| Foreign investment income | Generally exempt | Taxed (worldwide) |
| Foreign capital gains | Exempt except taxable Australian property | Taxed (worldwide), 50% discount over 12 months |
| Australian-source + employment income | Taxed at marginal rates | Taxed at marginal rates |
Source: PwC Worldwide Tax Summaries - Australia (as of 2026-06-24).
When you become a tax resident
Australian tax residency is decided by a set of tests - the primary 'resides' test (whether you live in Australia), backed by the domicile test, a 183-day test, and a superannuation test. Residents are taxed on worldwide income (subject to the temporary-resident concession); non-residents are taxed only on Australian-source income, generally without the tax-free threshold.
Source: PwC Worldwide Tax Summaries - Australia (Residence) (as of 2026-06-24).
The temporary resident concession
Most people who move to Australia for work arrive on a temporary visa, and Australian tax law treats them gently while that lasts: foreign investment income is generally exempt, and foreign capital gains are exempt unless they relate to taxable Australian property. You are still taxed on what you earn in Australia and on employment income earned while a temporary resident.
The concession is tied to visa status, not time - it continues as long as you remain a temporary resident, and ends when you become a permanent resident or citizen (or your spouse does). At that point Australia taxes your worldwide income like any other resident.
Capital gains and inheritance
Australia has no inheritance or estate tax. It does tax capital gains - they are added to assessable income and taxed at marginal rates, but individuals get a 50% discount on assets held longer than 12 months. For temporary residents, foreign capital gains are largely outside the net; for ordinary residents, worldwide gains are caught.
Before you move: what to weigh
- The concession depends on temporary-visa status - it ends on permanent residency or citizenship, when worldwide income becomes taxable.
- The top marginal rate is 45%, or about 47% once the 2% Medicare levy is added.
- There is no inheritance tax, but capital gains are taxed (with a 50% discount over 12 months).
- US citizens remain taxable by the US on worldwide income; the Australia-US treaty and foreign-tax credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Australia.
Does Australia tax foreign income for temporary residents?
Mostly no. While you hold a temporary visa and are a temporary resident, foreign investment income is generally exempt and foreign capital gains are exempt except on taxable Australian property. You are still taxed on Australian-source income and on employment income earned while temporary-resident.
Does Australia have an inheritance tax?
No - Australia has no inheritance or estate tax. It does tax capital gains, which are included in assessable income and taxed at marginal rates, though individuals receive a 50% discount on assets held for more than 12 months. Estate planning therefore centres on capital gains, not a death duty.
When are you an Australian tax resident?
Residency is decided by several tests: the main 'resides' test, plus the domicile, 183-day, and superannuation tests. Residents are taxed on worldwide income (subject to the temporary-resident concession); non-residents only on Australian-source income. Confirm which tests you meet, as outcomes turn on your facts.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Australia as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.