INTRO: Australian tax residents are taxed on their worldwide income, while non-residents are taxed only on their Australian-sourced income
By Molina Asthana
For an understanding on the tax liability of NRIs and PIOs in Australia for income earned overseas, the primary issue is whether you are an Australian resident for tax purposes. This is because Australian tax residents are generally taxed on their worldwide income whereas non-residents are generally taxed only on their Australian-sourced income.
You are an Australian resident for tax purposes if you have: always lived in Australia; moved to Australia and live here permanently; been in Australia continuously for six months or more and for most of the time you have beenin the one job and living in the same place; or been in Australia for more than half of the financial year, unless your usual home is overseas, andyou do not intend to live in Australia.
The following table shows your residency status in some common situations, but may depend on the tax treaty between India and Australia.