What Australian income must I pay tax on?

As a non-resident, you must pay tax on all the salary and wage income you earn during your stay in Australia.

The tax owed will most likely have been withheld by your employer. If too much tax was withheld the excess payment will be returned to you for a refund.

You should also expect to pay tax on any allowances or tips you received at work.

You will also pay a 10% tax on the interest you earn from an Australian bank account and a tax on unfranked dividends, if any, of about 30% depending on the circumstances.

Neither interest nor dividends are assessable income, and therefore do not necessitate lodging a tax return. These taxes are withheld instead.

You must make sure to alert the bank paying you interest and the Australian company paying you dividends of your permanent overseas address. If you do not, you will have to pay tax at the higher rate of 45%, instead of 10%, on the income earned.

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