For educational purposes only. Not tax, legal, or financial advice. Tax laws change frequently. Consult a registered tax agent or CPA for your specific situation.

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    TaxKiln

    Arriving in Australia: New Residents

    When tax residency starts for new arrivals, the part-year return, TFN and ABN applications, cost base reset on foreign assets, temporary resident CGT exemption, Medicare enrolment, and first-year foreign income treatment.

    New arrivals become Australian tax residents on the date they first begin living in Australia with an intention to stay, not the date the visa was approved overseas. From that date, worldwide income is assessable. Foreign assets owned at arrival receive a cost base reset to market value on the date of residency for Australian CGT purposes, meaning only the increase in value from that date is subject to Australian CGT on a future disposal. The 12-month holding period for the 50% CGT discount runs from the date you became resident, not the original purchase date.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact ATO. Read our editorial scope →

    When Australian tax residency begins

    Residency is about your pattern of living, not your visa label or passport. The ATO uses four tests: the resides test (whether you actually live in Australia in an ordinary sense, considering home, family, work, and social life), the domicile test (permanent home in Australia unless permanent place of abode is clearly overseas), the 183-day test (physically in Australia for 183 or more days, unless usual home is overseas and no intention to live here), and the Commonwealth super test (certain federal government employees in specific super schemes). For new arrivals, residency usually starts on the date you first begin living here with an intention to stay. This is typically when you move into long-term accommodation and start work, not the date the visa was approved overseas. Someone arriving on a tourist visa with no work rights or settled accommodation does not become a tax resident on arrival.

    Part-year tax return and worldwide income

    In the year you arrive, you are a part-year resident. The tax-free threshold and rates are pro-rated. Before your residency date, only Australian-sourced income is taxable in Australia. From your residency date, both Australian-sourced and foreign-sourced income are assessable (subject to temporary resident rules). Income earned overseas before you moved to Australia from a job that finished before your arrival is generally not taxable in Australia, provided it is not Australian-sourced. Foreign income received after your residency date (overseas salary still coming through, interest on foreign bank accounts, foreign rental income) must be declared. Double tax agreements with your home country can allocate taxing rights and provide foreign tax credits to avoid double taxation.

    TFN and ABN for new arrivals

    A Tax File Number (TFN) is your personal tax identifier, required for work, lodging returns, and accessing government systems. Apply online through the ATO once in Australia with a valid visa, or via Services Australia and Australia Post outlets. Without a TFN, employers and financial institutions withhold at the top marginal rate. An Australian Business Number (ABN) is required if you are carrying on an enterprise (not just casual employment). Apply through the Australian Business Register (ABR) website. Quote both TFN and ABN to pay correct tax and avoid the 47% no-ABN withholding that applies when a payer does not receive an ABN from a supplier.

    Superannuation and temporary residents

    Employers must pay Superannuation Guarantee (SG) contributions from the day you start eligible employment. The SG rate is 12% for 2025-26. Super is a compulsory retirement savings system separate from tax. Contributions accumulate in a complying super fund and cannot normally be accessed until preservation age plus retirement, or age 65. Temporary residents (holding a temporary visa, not an Australian or NZ citizen) can claim accumulated super back as a Departing Australia Superannuation Payment (DASP) after permanently leaving Australia and their visa ceasing. DASP withdrawals are subject to specific tax rates (35% for non-WHM temporary residents, 65% for working holiday makers). Claims are made online via myGov linked to the ATO.

    Foreign assets and cost base reset on arrival

    For foreign assets you already own when you become an Australian tax resident (overseas shares, investment property, business interests), Australian rules treat you as if you acquired them at market value on the date you became resident. Only the increase in value from the date you became resident to the date you later sell is subject to Australian CGT. The 12-month ownership test for the 50% CGT discount requires you to hold the asset for more than one year after becoming resident. Years of ownership before arrival do not count towards the Australian discount period. Keep records of the market value of all foreign assets on your arrival date. Obtain independent valuations for significant assets (property, unlisted business interests).

    Medicare enrolment and reciprocal health care

    Many permanent residents can enrol in Medicare from arrival once they have the right visa and identity documents. Enrolment is via Services Australia (Medicare enrolment form or myGov-linked online process). The 2% Medicare levy applies to Australian tax residents from their residency date. Visitors and new residents from countries with Reciprocal Health Care Agreements (RHCAs) can access limited Medicare benefits for medically necessary care. Countries with RHCAs include the UK, New Zealand, Ireland, Italy, Belgium, Netherlands, Sweden, Finland, Norway, Malta, and Slovenia. RHCA coverage is often more restricted than full Medicare, and private health cover is strongly recommended for many new arrivals.

    Day one to first tax return: practical steps

    The practical sequence for new arrivals runs as follows. Determine your tax residency date using the ATO tests (usually the date you moved into settled accommodation and began work). Apply for a TFN immediately, and an ABN if running a business. Ensure your employer is paying super correctly from day one. Enrol in Medicare if eligible. Keep records of foreign asset market values on your arrival date for future CGT calculations. Separate pre-arrival and post-arrival foreign income in your records. Lodge a part-year resident tax return covering worldwide income from your residency date only. If you are from a treaty country, check which income is taxable where and claim any foreign tax credits.

    Statute references

    • ITAA 1936 s 6(1) (residency tests: resides, domicile, 183-day, Commonwealth super)
    • ITAA 1997 Division 855 (CGT cost base reset on becoming resident)
    • Superannuation Guarantee (Administration) Act 1992
    • ATO new resident guidance (TFN, part-year return, foreign income)
    • Services Australia Medicare enrolment process
    • Reciprocal Health Care Agreements (11 countries)
    • ATO DASP information (departing super for temporary residents)

    Frequently asked questions

    I arrived in Australia three months ago but have not applied for a TFN yet. What happens?+
    Without a TFN, employers must withhold tax at the top marginal rate (currently 47% including the 2% Medicare levy). Banks and financial institutions also withhold at the top rate on interest income. Apply for a TFN as soon as possible through the ATO (online if you have a valid visa) or via Services Australia and Australia Post outlets. Once you have a TFN, provide it to your employer and financial institutions to correct future withholding. Over-withheld amounts are reconciled when you lodge your tax return.
    I owned shares in my home country before moving to Australia. Do I pay Australian CGT on the full gain since I bought them?+
    No. Australia treats you as if you acquired those shares at their market value on the date you became an Australian tax resident. Only the increase in value from that date to the date you later sell is subject to Australian CGT. You need to hold the asset for more than 12 months after becoming resident to qualify for the 50% CGT discount. Keep records of the market value of all foreign assets on your arrival date.
    I am on a temporary visa. Is my foreign income taxable in Australia?+
    Temporary residents (holding a temporary visa and not an Australian or NZ citizen) benefit from special rules that exempt many types of foreign passive income and gains on non-Australian assets from Australian tax. Foreign employment income earned while working in Australia is still taxable. The temporary resident exemption is a significant concession, but it does not cover all income types. Check whether your specific income falls within the exemption before assuming it is excluded.
    Can I access first home buyer grants or stamp duty concessions as a new permanent resident?+
    Most first home buyer concessions and grants require at least one buyer to be an Australian citizen or permanent resident, with the property used as a principal place of residence for a minimum period. Non-residents and temporary visa holders are generally ineligible and may face additional restrictions, including foreign investment approval requirements. Eligibility varies by state and territory, so check both your migration status and the specific state rules before assuming access.

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