## Expenses you can't claim

You can't claim the following expenses in relation to your self-education:

- tuition fees paid by someone else or that your employer or a third-party reimburses you for
- tuition fees paid upfront or with the assistance of a HECS-HELP loan for Commonwealth supported places at a university or higher education provider
- repayments of study and training support loans such as
- Higher Education Loan Program (HELP), including FEE-HELP and HECS-HELP
- Student Financial Supplement Scheme
- VET Student Loans (VSL)
- Student Start-up Loans and former ABSTUDY Student Start-up Loans
- Australian Apprenticeship Support Loans (AASL)
- accommodation and meals where you are not required to be [temporarily away from home](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/overnight-travel-expenses-and-allowances) for one or more nights.

You also can’t claim a deduction for self-education expenses you incur if your only income is a qualifying [Australian Government allowance or payment](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/Income%20you%20must%20declare/government-payments-and-allowances). This allowance or payment is a rebatable benefit and is eligible for the beneficiary tax offset.

For [self-education expenses incurred before 1 July 2022](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/education-training-and-seminars/self-education-expenses/self-education-reduction-in-expenses), you generally can't claim the first $250 of expenses.

### Example: receiving Austudy payments

Alison starts a full-time Bachelor of Pharmacy. She applies for and receives Austudy payments from Centrelink to support herself while studying.

Austudy is a taxable government assistance payment and is eligible for the beneficiary tax offset.

Alison can't claim a deduction for her self-education expenses because the Austudy payments are her sole income and Austudy is a rebatable benefit.

End of exampleFor more information see [TR 2024/3](https://www.ato.gov.au/law/view/document?docid=TXR/TR20243/NAT/ATO/00001) *Income tax: deductibility of self-education expenses incurred by an individual*.


### What this Ruling is about

1. This Ruling considers how Subdivision 40-B and Subdivision 40-C of the *A New Tax System (Goods and Services Tax) Act 1999* (GST Act) apply to supplies of residential premises.

2. The Ruling does not consider the issue of when a sale of real property is a sale of new residential premises. This issue is considered in Goods and Services Tax Ruling GSTR 2003/3 *Goods and services tax*: *when is a sale of real property a sale of new residential premises*? The Ruling does not consider when premises are commercial residential premises. This issue is considered in Goods and Services Tax Ruling GSTR 2012/6 *Goods and services tax*: *commercial residential premises*.

3. Unless otherwise stated in the examples in this Ruling, it is assumed that supplies and acquisitions made by entities mentioned satisfy all of the necessary requirements in section 9-5 of the GST Act for taxable supplies and section 11-5 for creditable acquisitions respectively. It is also assumed that a sale of residential premises is not a sale of new residential premises unless otherwise stated. Nor is any reference to a lease of premises a reference to a long-term lease unless otherwise stated.

4. All legislative references in this Ruling are to the GST Act unless otherwise specified.

5. A general introduction to the GST legislation affecting residential premises can be found in the Background in Part A of Appendix 1 (paragraphs 54 to 60 of this Ruling).

### Ruling

**Residential premises to be used predominantly for residential accommodation (regardless of the term of occupation)
**

***Definition of residential premises*
**

6. Premises[[1]](https://www.ato.gov.au/law/view/document?LocID=%22GST%2FGSTR20125%2FNAT%2FATO%2Ffp1%22&PiT=99991231235958#fp1), comprising land or a building, are residential premises under paragraph (a) of the definition of residential premises in section 195-1 where the premises are occupied as a residence or for residential accommodation, regardless of the term of occupation. The actual use of the premises as a residence or for residential accommodation is relevant to satisfying this limb of the definition.

7. Premises, comprising land or a building, are also residential premises under paragraph (b) of the definition of residential premises if the premises are intended to be occupied, and are capable of being occupied, as a residence or for residential accommodation, regardless of the term of the intended occupation. This limb of the definition refers to premises that are designed, built or modified so as to be suitable to be occupied, and capable of being occupied, as a residence or for residential accommodation. This is demonstrated through the physical characteristics of the premises.

8. A supply of residential premises may consist of a single room or apartment, or a larger complex consisting of rooms or apartments.

***Residential premises to be used predominantly for residential accommodation (regardless of the term of occupation) - physical characteristics*
**

9. The requirement in sections 40-35, 40-65 and 40-70 that premises be 'residential premises to be used predominantly for residential accommodation (regardless of the term of occupation)' is to be interpreted as a single test that looks to the physical characteristics of the property to determine the premises' suitability and capability for residential accommodation.[[2]](https://www.ato.gov.au/law/view/document?LocID=%22GST%2FGSTR20125%2FNAT%2FATO%2Ffp2%22&PiT=99991231235958#fp2)

10. The requirement for residential premises to be used predominantly for residential accommodation does not require an examination of the subjective intention of, or use by, any particular person. Premises that display physical characteristics evidencing their suitability and capability to provide residential accommodation are residential premises even if they are used for a purpose other than to provide residential accommodation (for example, where the premises are used as a business office).

11. Premises that do not display physical characteristics demonstrating that they are suitable for, and capable of, being occupied as a residence or for residential accommodation are not residential premises to be used predominantly for residential accommodation, even if the premises are actually occupied as a residence or for residential accommodation. For example, someone might occupy premises that lack the physical characteristics of premises suitable for, or capable of, residential accommodation (such as a squatter residing in a disused factory). Although the premises may satisfy paragraph (a) of the definition of residential premises in section 195-1, the premises are not residential premises to be used predominantly for residential accommodation.

*Example 1 - purchaser's intention not to use premises for residential accommodation*

12. *John carries on an enterprise which involves leasing a house on property which he owns. Based on the physical characteristics of the house it is residential premises to be used predominantly for residential accommodation. The area in which the house is located has recently been rezoned by the local Council to permit higher density residential apartments. Following the rezoning, a developer, Knock Them Down Co, approaches John and offers to purchase his property. Knock Them Down Co intends to demolish the house, redevelop the property into a new apartment building, and sell the apartments*.

13. *The fact that Knock Them Down Co does not intend to use the house to provide residential accommodation does not mean that the house is not residential premises to be used predominantly for residential accommodation. Knock Them Down Co's intention is not a relevant factor in determining the character of the premises. Based on its physical characteristics, the house is residential premises to be used predominantly for residential accommodation. The sale of the house by John to Knock Them Down Co is an input taxed supply under section 40-65*.

***Living accommodation provided by shelter and basic living facilities*
**

14. 'Residential premises' are not limited to premises suited to extended or permanent occupation. Residential premises provide 'living accommodation', which does not require any degree of permanence. It includes lodging, sleeping or overnight accommodation.

15. To satisfy the definition of residential premises, premises must provide shelter and basic living facilities. Premises that do not have the physical characteristics to provide these are not residential premises to be used predominantly for residential accommodation.

16. A supply of a residential apartment in a building may include a garage, car-parking space, or storage area located within the building complex. The garage, car-parking space, or storage area is ancillary or incidental to the dominant component of the supply being the residential apartment. It can be reasonably concluded that the garage, car-parking space, or storage area are to be used for the better enjoyment of the residential apartment. They do not form a dominant part of the supply. The supply is therefore a composite supply of residential premises to be used predominantly for residential accommodation.[[3]](https://www.ato.gov.au/law/view/document?LocID=%22GST%2FGSTR20125%2FNAT%2FATO%2Ffp3%22&PiT=99991231235958#fp3) This is still the outcome where the garage, car-parking space, or storage space is separately titled from the residential apartment, but is physically located within the same building complex.

17. A supply of a garage, car-parking space, or storage area that is supplied separately from the supply of a residential unit is not a supply of residential premises to be used predominantly for residential accommodation. This may occur, for example, where the garage, car-parking space, or storage area is supplied after the original supply of the residential unit, or where the garage, car-parking space, or storage area is located in a separate building. The supply is a taxable supply where the requirements of section 9-5 are satisfied.

*Example 2 - supply of a car parking space*

18. *Patrick is a plumber who is registered for GST. He purchases a residential unit in a CBD location with a separately titled car parking space in the same building. He resides in the unit for a period and then decides to rent the unit to overseas students who attend a nearby university. He initially leases the residential unit and car parking space together under the one lease. The supply of the residential unit and car parking space is an input taxed supply of residential premises that are to be used predominately for residential accommodation*.

19. *For a subsequent lease, he realises that students are unlikely to need the car parking space and excludes the car parking space from the lease of the residential unit. He leases the car parking space to an accountant who requires the car parking space for business purposes. The supply of the car parking space is a taxable supply. It is not a supply of residential premises to be used predominately for residential accommodation as it is not ancillary or incidental to the supply of the residential premises*.

***Fit for human habitation*
**

20. Premises must be fit for human habitation in order to be suitable for, and capable of, being occupied as a residence or for residential accommodation. An objective consideration of the relevant facts and circumstances determines whether residential premises are fit for human habitation. Residential premises are not fit for human habitation when they are in a dilapidated condition which prevents them being occupied for residential accommodation.

21. Residential premises that are either:

•in a minor state of disrepair; or
•subject to a temporary legal prohibition for occupation pending minor repairs;

are still suitable for, and capable of, being occupied as a residence or for residential accommodation.

22. A partially built building is not residential premises until it becomes fit for human habitation. Contractual or legal prohibitions against residential occupation do not prevent premises from being suitable for, and capable of, providing residential accommodation.

*Example 3 - temporary disruption to occupation*

23. *Ashlea is registered as a hairdresser and owns and rents residential premises that she formerly resided in at a costal town in northern Australia. The premises are not new residential premises*.

24. *A tropical cyclone crosses the coast leading to windows being shattered and damage to the roof. The damage is readily repairable but Ashlea fails to make the repairs resulting in the local Council issuing a notice stating that the premises are not fit for habitation. As a result, the tenant's occupation of the premises is temporarily disrupted. Ashlea sells the premises before making the repairs. Despite the damage to the premises and the action taken by the Council, the physical characteristics of the premises show that it is suitable for, and capable of, being occupied as a residence or for residential accommodation. The sale of the premises is therefore an input taxed supply of residential premises to be used predominately for residential accommodation*.

**Other premises
**

25. Not all premises that possess basic living facilities are residential premises to be used predominantly for residential accommodation. If it is clear from the physical characteristics of the premises that their suitability for living accommodation is ancillary to the premises' prevailing function, the premises are not residential premises to be used predominantly for residential accommodation.

*Example 4 - office building*

26. *Commercial Place is a five storey building. The ground floor has a foyer and reception area. All floors have been constructed with large open spaces for staff cubicles and desks, smaller office spaces, meeting rooms and areas for storage of documents. Each floor also contains a kitchen, amenities area and toilets. The ground floor also has showers provided with the toilet facilities*.

27. *While the office building provides shelter and basic living facilities including kitchens, toilets and shower facilities, the physical characteristics of the premises indicate that they are not residential premises to be used predominantly for residential accommodation. The physical characteristics indicate that the premises are a place for office workers to undertake tasks associated with a business. A supply of the premises would not be input taxed under Division 40*.

*Example 5 - private hospital*

28. *Maxwell Hospital is a privately operated hospital. The hospital contains wards to accommodate 150 patients, an entrance foyer, waiting areas, operating theatres, recovery areas, reception areas, nurses' stations, specialists' suites, storerooms, staff amenities, utility and disposal rooms, and ambulance bays. The design of the premises is based around the needs of patients and medical practitioners in providing medical and surgical treatment*.

29. *While Maxwell Hospital provides shelter and basic living facilities, its physical characteristics indicate that it is not residential premises to be used predominantly for residential accommodation. The physical characteristics indicate that these premises are a place where the sick or injured are given medical or surgical treatment. A supply of the premises would not be input taxed under Division 40*.

*Example 6 - residential care facility*

30. *Care-res is a developer that specialises in constructing and leasing aged care facilities. Care-res designs and builds these facilities to specifications that make these premises suitable for approval for use as a residential care facility under the relevant legislation*.

31. *Care-res constructs a facility designed to provide both personal and nursing care. The physical characteristics of this facility differ from the physical characteristics of premises for independent retirement living. This facility includes what is commonly known as a low care hostel and a nursing home. The facility meets all of the regulatory requirements of the relevant legislation in the State in which it operates, including the applicable provisions of the Building Code of Australia for facilities of this type*.

32. *The facility includes private bedrooms and separate communal meal, living and entertainment areas, administration offices, and commercial kitchen and laundry. All functional areas for occupants, including those areas that provide living accommodation, have been designed for fittings, furniture and equipment used to provide care to persons with a condition of frailty or disability*.

33. *Overall, the physical characteristics that reflect suitability for the provision of care prevail over those which reflect suitability for the provision of residential accommodation. Although accommodation is necessary in the course of providing residential care, the premises' suitability for accommodation is ancillary to their suitability for providing care*.

34. *The facility is not residential premises to be used predominantly for residential accommodation. The physical characteristics evidence that the premises are to be used predominantly to provide care to the frail and disabled. A supply by Care-res by way of the lease of the facility is a taxable supply under section 9-5*.

35. Where it is doubtful, based on an inspection of the physical characteristics of the premises, whether the premises are residential premises to be used predominantly for residential accommodation, design or construction documents, such as architectural plans, may assist in characterising the premises. This documentation may also be relevant in determining the intended character of premises before construction of the premises is completed.

*Example 7 - shop*

36. *Julian leases a building from its owner. It consists of a display area, a storage area, an office, a kitchenette and a toilet. The premises were designed as a shop which is evidenced by the architectural plans held by the lessor. Julian furnishes the premises in order to use it as his residence, but makes no structural changes to it*.

37. *The building provides shelter and basic living facilities. Although the physical characteristics of the building may be considered similar to characteristics found in a house or apartment, the physical characteristics of the building together with the design plans objectively show that the premises are not residential premises to be used predominantly for residential accommodation. Rather, the characteristics and design plans show that the building is a shop designed to facilitate a retail business*.

38. *Although Julian's occupation of the shop as a residence means the shop satisfies paragraph (a) of the definition of residential premises in section 195-1, the shop is not residential premises to be used predominantly for residential accommodation. The supply is not an input taxed supply under Division 40 and is a taxable supply under section 9-5*.

39. *The outcome of this example would differ if Julian had made modifications to the building that changed the physical character of the building from a shop to residential premises to be used predominately for residential accommodation*.

**Supplies requiring apportionment
**

40. The value of a supply of premises that includes residential premises to be used predominantly for residential accommodation needs to be apportioned to the extent that part of the premises is not residential premises to be used predominantly for residential accommodation.

*Example 8 - residential premises partly converted for business use*

41. *Shannon decides to partly modify her house to use in her profession as a doctor. She modifies an area of the house to provide office and consulting room space, an operating theatre, a waiting room and storage for the business. A sealed car park is also added to the property. Significant physical modifications are made to these areas, including the removal and alteration of walls, and the addition of lighting, hygiene facilities and security to meet industry standards. The existing lounge room is used as the patients' waiting room. An existing bedroom is used for storage. No physical modifications are made to the lounge room or bedroom*.

42. *The modifications result in the part of the premises consisting of the office, consulting room, operating theatre and car park no longer being residential premises to be used predominantly for residential accommodation. Objectively, part of the premises is still designed predominantly for residential accommodation, comprising bedrooms (including the bedroom used for storage*), *bathroom, kitchen, living room, lounge room and gardens*.

43. *If Shannon later sells or leases the premises, she will need to apportion the value of the supply between the taxable and input taxed parts of the supply*.

*Example 9 - the addition of furniture and minor fittings is not sufficient to modify physical characteristics*

44. *Rebecca is a solicitor. She lives in a terrace house that is not new residential premises, and decides to convert a room at the front of the house into an office for her practice. Rebecca arranges the installation of an electricity point and telephone line for the place in the room where she intends to set-up a printer and facsimile machine. She fits the room out with book shelves, filing cabinets, desk, office chairs, a table for the printer and facsimile machine, and suitable floor coverings. She also has an advertising sign placed outside the front door of her house. Rebecca does not modify any of the other rooms in the house*.

45. *These changes are not sufficient to modify the physical characteristics of the terrace house into premises other than residential premises to be used predominantly for residential accommodation. The furniture and fittings that Rebecca has brought into the room do not change the physical characteristics of the house itself. Also, the installation of an electricity point and telephone line, and the placement of a sign outside the house, are not sufficient modifications to alter the physical characteristics of the premises so that they are no longer residential premises to be used predominantly for residential accommodation. If Rebecca sells or leases the premises she will be making a wholly input taxed supply under section 40-65 or section 40-35 respectively*.

***Land supplied with a building*
**

46. There is no specific restriction, in the definition of residential premises, on the area of land that can be included with a building. The extent to which land forms part of residential premises to be used predominantly for residential accommodation is a question of fact and degree in each case. A relevant factor in determining this is the extent to which the physical characteristics of the land and building as a whole indicate that the land is to be enjoyed in conjunction with the residential building. The use of the land is not a determining factor in deciding if the land forms part of the residential premises.

**Vacant land
**

47. Vacant land is not capable of being occupied as a residence or for residential accommodation as it does not provide shelter and basic living facilities. Vacant land is not residential premises.

**Applying the tests in additional scenarios
**

***Display homes*
**

48. A house that is residential premises to be used predominantly for residential accommodation may be supplied by way of lease as a display home. Regardless of whether the lease contains a prohibition on the house being used as a residence or for residential accommodation, the supply is an input taxed supply under section 40-35.

***Transportable buildings*
**

49. A transportable building such as a demountable dwelling or moveable home[[4]](https://www.ato.gov.au/law/view/document?LocID=%22GST%2FGSTR20125%2FNAT%2FATO%2Ffp4%22&PiT=99991231235958#fp4) that is designed as a residence, or to provide residential accommodation, is residential premises when placed on land and installed ready for occupation.

50. A supply of a transportable building before it is placed on land and installed ready for occupation is not an input taxed supply under sections 40-35, 40-65 or 40-70.[[5]](https://www.ato.gov.au/law/view/document?LocID=%22GST%2FGSTR20125%2FNAT%2FATO%2Ffp5%22&PiT=99991231235958#fp5) The supply is subject to the basic rules.

51. A transportable building that is not designed as a residence or to provide residential accommodation (for example, a transportable building that lacks basic living facilities) is not residential premises to be used predominantly for residential accommodation.

***Vehicles designed for road use*
**

52. Road vehicles, including motor homes, caravans and campervans, are not residential premises as they are not land or a building. This is the case regardless of whether they are used as a residence or for residential accommodation.

### Date of effect

53. This Ruling applies both before and after its date of issue. However, this Ruling does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). If, prior to the issue of this Ruling, you relied on Goods and Services Tax Ruling GSTR 2000/20, you are protected in respect of what you have done up to the date of issue of this Ruling and the withdrawal of GSTR 2000/20.

**Commissioner of Taxation**

19 December 2012


## If you stop being an Australian resident

If you [stop being an Australian resident for tax purposes](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency), you are taken to have disposed of CGT assets for their market value at the time you stopped being a resident, except for any taxable Australian property. This is sometimes called 'deemed disposal'.

The same applies if you stop being a resident trust for CGT purposes.

Foreign and temporary residents are subject to CGT only on taxable Australian property. This is the reason you are not taken to have disposed of these particular CGT assets when you stop being an Australian resident for tax purposes.

If you stop being an Australian resident for tax purposes, the full [CGT discount](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/cgt-discount-for-foreign-residents) will not be available when you dispose of an asset that you acquired after 8 May 2012 and is sold after you became a foreign resident. You may get an apportioned discount for the part of the ownership period of the asset where you were an Australian resident.

If you have assets that are not taxable Australian property that you are taken to dispose of when you stop being an Australian resident, you can claim the full 50% CGT discount if you have always been an Australian resident while owning the asset.

If you have any indirect Australian real property interests, or options or rights to acquire such interests, you are taken to have immediately re-acquired these assets for their market value.

### Example: stops being an Australian resident

Jemima and Maurice were born in Australia and have always resided in Australia. Maurice gets a job in Italy, so Jemima and Maurice decide to move there permanently.

Maurice and Jemima jointly own an apartment which they decide to keep and rent out. Jemima and Maurice also own some shares in publicly listed companies.

They leave Australia on 15 January 2025 and cease to be Australian residents at that date.

As Jemima and Maurice have stopped being Australian residents, they are taken to have disposed of their shares for market value on 15 January 2025. They can claim the full 50% CGT discount on the deemed disposal of their shares.

Jemima and Maurice are not taken to have disposed of their apartment because it is taxable Australian property. A CGT event will occur in respect of the apartment when they dispose of it. They can't claim the full 50% CGT discount on the sale of their apartment. However, they may claim an apportioned discount on any capital gains on the sale as they were Australian residents for part of their ownership period. They can use the [capital gains tax record keeping tool](https://www.ato.gov.au/calculators-and-tools/capital-gains-tax-record-keeping-tool) to help them calculate this.


## How much super to pay for independent contractors

The minimum super you must pay is the super guarantee [percentage](https://www.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/?page=22#Super_guarantee_percentage) of the worker's [ordinary time earnings](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay/list-of-payments-that-are-ordinary-time-earnings). This is the labour component of the contract. Do not include:

- any contract payments that are for material and equipment
- overtime for which the worker was paid overtime rates
- GST.

If the values of the different parts of the contract aren't detailed in the contract, we'll accept their market values. We'll consider normal industry practices. If you cannot work out the labour part of the contract, you can use a reasonable market value of the labour section.

Paying an additional amount equal to the SG rate to the independent contractor on top of their usual pay does not count as a super contribution. To avoid the super guarantee charge, you must make the SG contribution to the independent contractor's super fund each quarter.


## Eligibility for exemption before you move in

If you build a dwelling on land you already own, the land normally is not exempt from capital gains tax (CGT) until the dwelling becomes your main residence.

However, you can treat the land as your main residence for up to 4 years before you move in if you:

- have an ownership interest (other than a life interest) in the land
- build, repair or renovate a dwelling on the land, or finish a partly constructed dwelling
- move into the dwelling as soon as practicable after it is finished and continue to use it as your main residence for at least 3 months.

The same option is available if you build a new dwelling to replace a dwelling that was demolished or destroyed. You can treat the vacant land as your main residence for up to 4 years while building your new home.

## How to apply the exemption

If you choose to treat land as your main residence until your home is finished:

- the land is exempt from the time you acquire it or for up to 4 years before you move in, whichever is shorter
- if you or anyone else occupies a dwelling that is already on the land, the exemption period does not start until that dwelling is vacated
- you can't treat any other dwelling as your main residence for the same period (except for a limited time if you are [moving from one main residence to another](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/moving-to-a-new-main-residence))
- you can't choose to have a shorter period of exemption for the new dwelling in order to exempt your old home for part of the construction period.

### Example: treating land as main residence

Ahmed built a new dwelling on a vacant block of land he bought, and moved from his old home into the new one. His key dates are:

- 3 November 1997 – bought old home
- 3 September 2010 – bought land for new dwelling
- 2 September 2024 – finished building new dwelling
- 1 October 2024 – sold old home
- 7 October 2024 – moved into new dwelling (this was as soon as practicable after completion).

Ahmed can treat the new dwelling as his main residence from 7 October 2020. This is the 4 years immediately before the new dwelling actually becomes his main residence.

If he chooses to do this, Ahmed's old home is exempt:

- from 3 November 1997 (when he acquired it) until 6 October 2020 (just before he began treating the dwelling under construction as his main residence)
- for the 6 months before he disposed of it – that is, from 1 April 2024 to 1 October 2024 – because during this period he can treat both dwellings as his main residence under the rules for moving from one main residence to another.

End of example
## If the owner dies during construction

The exemption can still apply if the owner of the dwelling under construction were to die at any time between:

- entering into contracts for the construction work
- the end of the first 3 months of residence in the new home.

The surviving joint owner (or if none, the trustee of the deceased estate) can choose to treat the land and dwelling as the deceased's main residence. The conditions are the same, except that the exemption period ends when the deceased died.


## Trips while working and between workplaces

You can claim a tax deduction for the cost of transport on trips to:

- perform your work duties – for example, if you travel from your regular place of work to meet with a client
- attend work-related conferences or meetings away from your regular place of work
- deliver items or collect supplies
- go between 2 or more separate places of employment, such as if you have more than one job (but not if one of the places is your home)
- go from your

- regular place of work to an alternative place of work that isn't a regular place of work (for example, a client's premises) while still on duty, and back to your regular place of work or directly home
- home to an alternative place of work that isn't a regular place of work to perform your duties, and then to your regular place of work or directly home (this doesn't apply if the alternative place of work has become a regular workplace).

### Example: travel between 2 separate workplaces

Aaron works part time at a supermarket and also works part time as a house cleaner. On Tuesdays Aaron drives his car directly from his job at the supermarket to his regular cleaning clients.

As the trip is between 2 separate places of work, neither of which is Aaron's home, he can claim a deduction for the transport expenses he incurs for that trip.

End of example

### Example: travel to an alternative place of work

Brock works for a large company with 2 offices in Melbourne. He usually works from the city office but occasionally he's required to attend training at the company's office in Box Hill. When Brock travels to the Box Hill office, he catches a tram at his own expense.

Brock can claim a deduction for the cost of the tram between the Melbourne office and Box Hill office as it's an alternative place of work. He can also claim the cost of any trips between the Box Hill office and his home.

However, if Brock works from the city office every Monday to Thursday and from the Box Hill office every Friday as a standard arrangement, then the city office is his regular place of work every Monday to Thursday and the Box Hill office is his regular place of work every Friday. Brock can't claim a deduction for trips between his home and either of his regular places of work.

End of example
## Trips between home and work

You can't claim trips between your home and place of work, except in [limited circumstances](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/trips-you-can-and-can-t-claim#Whenyoucanclaimtripsbetweenhomeandwork).

These trips put you in a position to start work and earn income but are not part of performing your work duties. The cost of these trips is a private expense.

This is the case even if you:

- live a long way from your regular place of work
- work outside normal business hours – for example, shift work or overtime
- do minor work-related tasks on the way to work or the way home – for example, picking up the mail
- go between your home and regular place of work more than once a day
- are on call – for example, you are on standby duty and your employer contacts you at home to come into work
- have no public transport near where you work
- do some work at home
- work from your home running your own business and travel directly to a place of work where you work for somebody else.

### Example: public transport not available

Tim works at his local cinema. His shift often finishes late into the night. The only available bus doesn't operate past 7:00 pm so Tim has to drive to and from work.

The cost Tim incurs to drive to work is not deductible. This is because Tim incurs the cost to put him in the position to earn his employment income, not in the course of performing his work duties.

End of example

### Example: working from home and travelling to regular place of work

Ravi works in the accounts department of a large retail chain. At the end of each month, Ravi's workload increases. To keep on top of his work, Ravi does some work at home before he goes into the office or when he gets home from the office in the evening.

Ravi can't claim a deduction for the expenses he incurs when he travels between his home and the office on these occasions.

Ravi works at home for convenience and doesn't incur the cost of travelling from his home to the office in the course of performing his work duties. He incurs the expenses to be in the position to start work. The transport costs are a private expense.

End of example

### Example: travelling while on standby duty

Nadena is a registered nurse at a hospital. During a typical fortnight, Nadena has 9 shifts and one standby shift. If another nurse calls in sick when Nadena is on standby duty she may be called in to work that shift.

The standby shift may be at night, early morning or during the day, depending on her roster cycle.

Nadena can't claim a deduction for travel between her home and the hospital when she is called into work while she is on standby duty.

She incurs the expense in travelling from her home to the hospital, not in the course of performing her work duties. The transport costs are a private expense. This is the case even if the shift is outside normal business hours or there is no public transport available.

End of example

### Example: travelling to a distant regular work location

Aldo lives in North Queensland with his family. He is an employee on a long-term project in Sydney. His employment contract states that his place of work is the office on the project site in Sydney.

As Aldo lives in North Queensland and only needs to be physically on site during certain stages of the project, he has an informal agreement with his employer to work from home whenever he's not required on site.

When it's necessary for Aldo to be on site, he's generally at the project site for no longer than 2 weeks at a time. When Aldo needs to be on site, he flies to Sydney at his own expense.

The project site in Sydney is Aldo's regular place of work and he can't claim a deduction for the cost of travelling from North Queensland to Sydney.

Aldo doesn't incur the transport expenses in the course of performing his work duties. He incurs the expenses to put him in the position to start work.

His travel costs to stay in Sydney, such as accommodation and meals, are also private because Aldo chooses to live in North Queensland and work in Sydney.

End of example
### When you can claim trips between home and work

There are some circumstances where you can claim a deduction for the cost of trips between home and work. You must check that you meet the eligibility conditions for at least one of the following:

- [Home is a base of employment](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/trips-you-can-and-can-t-claim#Homeisabaseofemployment)
- [Transporting bulky tools and equipment](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/trips-you-can-and-can-t-claim#Transportingbulkytoolsandequipment)
- [Itinerant or shifting places of work](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/trips-you-can-and-can-t-claim#Itinerantorshiftingplacesofwork)

You may also be able to claim a deduction for a trip that includes an alternative place of work that isn't a regular place of work – see [Trips while working and between workplaces](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/cars-transport-and-travel/trips-you-can-and-can-t-claim#Tripswhileworkingandbetweenworkplaces).

#### Home is a base of employment

You can claim a deduction for the cost of a trip from home to your place of work if your home was a base of employment. You must meet all 3 of these conditions:

- You're required to start your employment duties at home then travel to your regular place of work to complete those particular duties.
- Undertaking the work in 2 locations is necessary due to the nature of your employment duties.
- The trip to your regular place of work isn't part of a normal trip to work that would have occurred anyway.

##### Example: home is base of employment

Tom is the IT Security Director of a data storage company. He's on call 24 hours a day to be notified of a security breach. His employer installs a secure terminal at his home so he can work from home if he receives a call out of hours. Normally, Tom would provide advice over the phone to the staff on site, and sometimes he would log into the secure terminal at his home to correct the issue.

At times, Tom starts working on a security issue from the home terminal but is then required to drive into the office out of hours to resolve the issue. On these occasions the transport expenses he incurs for this journey are deductible, as his home has become a base of employment. However, his regular daily trip into the office is not deductible.

End of example
#### Transporting bulky tools and equipment

You can claim a deduction for the cost of trips between home and work if you need to carry bulky tools or equipment and all the following conditions are met:

- the tools or equipment are essential to perform your work
- the tools or equipment are bulky, meaning that

- they are awkward to transport because of their size and weight
- they can only be transported conveniently using a motor vehicle
- there is no secure storage for such items at the workplace
- you don't transport the tools or equipment as a matter of choice (for example, if your employer provides secure storage and you choose to take the tools home instead).

If you claim a deduction, you will need to keep a record of:

- all work items you carry
- the size and weight of all work items
- evidence that the items you carry are essential to your work
- evidence that your employer did not provide secure storage at the workplace.


## Assessments

When you lodge your tax return for an income year, we issue you with an assessment (original assessment). An assessment shows your tax liability for that income year.

We will issue you with an amended assessment showing your updated tax liability if either:

- you request an amendment to your assessment, for example to include a deduction you forgot to claim
- we review your return and amend your assessment, for example, if we disallow a deduction you have claimed because you can't claim it under the law.

There are time limits for amending an assessment and an amended assessment. The time limit gives you certainty about your tax affairs because it means we can't amend your assessment outside the time limit.

## Individuals

Individuals generally have **2 years** to amend an assessment. The time limit starts from the day after your notice of assessment is sent to you.

For example, if you receive an email from myGov on 3 November 2025 to advise you your notice of assessment is available, your amendment period starts on 4 November 2025. That means you have until 4 November 2027 to request an amendment to your assessment.

If you are out of time to amend your assessment, you may need to lodge an objection instead. While the time limit for lodging amendments and objections is the same, you can request an extension of time to lodge an objection in some circumstances.

You can submit more than one amendment request within a review period.

## Sole Traders

For sole traders, the time limit to amend an assessment for the 2023–24 income year and earlier income years is generally **2 years**.

For the 2024–25 income year and later income years, sole traders will have **4 years** to amend an assessment.

The period for amending your assessment starts from the day after your assessment is sent to you.

You should submit an amendment early to ensure that we can process it in time.

You can submit more than one amendment request within a period of review.

Generally, we can't amend your assessment more than 2 years after it was issued unless you request it. However, we may amend your tax return outside the time limit in exceptional circumstances, such as when evasion or fraud has occurred.

If you're a business or super entity, see [Time limits for business and super amendments](https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/fix-a-mistake-or-amend-your-tax-return/request-an-amendment-to-a-business-or-super-tax-return).

## When to lodge an objection

If you're out of time to amend your assessment, you may need to lodge an objection instead.

You'll need to [lodge an objection](https://www.ato.gov.au/individuals-and-families/your-tax-return/if-you-disagree-with-an-ato-decision/object-to-a-decision/complete-and-lodge-your-objection) if you want to:

- dispute the law
- dispute the facts we have used to come to a decision about your tax affairs (including your assessment)
- lodge an amendment outside of the time limits.

You may be able to request an extension of time to lodge an objection in some circumstances.

For more information on objections, see [Eligibility to lodge an objection](https://www.ato.gov.au/individuals-and-families/your-tax-return/if-you-disagree-with-an-ato-decision/object-to-a-decision/eligibility-to-lodge-an-objection).


#### Workers’ compensation (paid leave type W)

Some employers pay workers' compensation to their employees, and in other circumstances the insurer makes the payment directly to the employee. Where you have made workers’ compensation payments, these must now be reported separately.

When reporting workers' compensation (paid leave type W), only include amounts you pay in relation to compensation schemes administered by:

- a federal, state or territory workers' compensation authority
- a federal, state or territory road and transport accident authority.

Don't include payments you make in relation to a commercially obtained insurance policy, such as private income protection or salary continuance policies – these are reported as [other paid leave (paid leave type O)](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/reporting-the-amounts-you-have-paid/disaggregation-of-gross#OtherpaidleavePaidleavetypeO).

Only pre-sacrifice amounts that are not classified as [OTE](https://www.ato.gov.au/businesses-and-organisations/super-for-employers/paying-super-contributions/how-much-super-to-pay/list-of-payments-that-are-ordinary-time-earnings) according to the SGAA should be included as workers’ compensation. Some industrial instruments may require super to be paid on these amounts.

If you are making a [back payment or arrears payment](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/reporting-the-amounts-you-have-paid/reporting-back-payments), it may be included in Workers’ compensation.

The following table outlines some examples of what should and shouldn't be included in **Workers’ compensation**.

Workers' compensation reporting examplesInclude

Don't include

- payments for any approved (or anticipated approval of) workers’ compensation absence paid by the employer to the employee
- top-up payments made by the employer
- workers’ compensation payments made after termination
- workers’ compensation payments may be required to continue to be paid, even after the employee is terminated, in accordance with insurer requirements
- although no longer technically an employee absence, these payments should be reported as workers’ compensation (paid leave type W)
- payments to employees on workers’ compensation who are at work performing duties – this payment must be reported as [gross](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/reporting-the-amounts-you-have-paid/disaggregation-of-gross#Gross)
- payments to employees under an income protection or salary continuance insurance policy - this is reported as [other paid leave (paid leave type O)](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/reporting-the-amounts-you-have-paid/disaggregation-of-gross#OtherpaidleavePaidleavetypeO)

- payments to employees on workers’ compensation who are at work performing duties – this payment must be reported as [gross](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/reporting-the-amounts-you-have-paid/disaggregation-of-gross#Gross)
- payments to employees under an income protection or salary continuance insurance policy - this is reported as [other paid leave (paid leave type O)](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/single-touch-payroll/in-detail/single-touch-payroll-phase-2-employer-reporting-guidelines/reporting-the-amounts-you-have-paid/disaggregation-of-gross#OtherpaidleavePaidleavetypeO)


## What is an Australian, foreign and temporary resident?

You are an [Australian resident for tax purposes](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency) if you [reside in Australia](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-resides-test) or if you satisfy one of the following statutory tests:

- [domicile test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-domicile-test)
- [183-day test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-183-day-test)
- [superannuation test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-superannuation-test)

If you are not an Australian resident for tax purposes, you are a [foreign resident](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/foreign-and-temporary-residents). A foreign resident is also referred to as a non-resident.

You are also a [temporary resident](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/foreign-and-temporary-residents) if:

- you have a temporary visa
- both you and your spouse are not Australian residents within the meaning of the *Social Security Act 1991* (that is, not an Australian citizen or permanent resident or a protected Special Category visa holder from New Zealand).

You won't be a temporary resident if, at any time after 6 April 2006, you have been an Australian resident and:

- you didn't have a temporary visa
- either you and your spouse were Australian residents within the meaning of the *Social Security Act 1991* (that is, are an Australian citizen or permanent resident or a protected Special Category visa holder from New Zealand).

A temporary resident may be an Australian resident for tax purposes or a foreign resident. If you satisfy the requirements for being a temporary resident, your capital gains will be taxed in the same way as a foreign resident.

## Becoming an Australian resident

When you [become an Australian resident for tax purposes](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency) (except when you are also a temporary resident after this occurs), you are taken to have acquired your [CGT assets](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/list-of-cgt-assets-and-exemptions) at the same time, for their market value at that time. This is sometimes called 'deemed acquisition'.

This does not apply to assets:

- you acquired before CGT started on 20 September 1985
- that were [taxable Australian property](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/taxable-australian-property), such as real estate in Australia and assets used to carry on a business in Australia – the general [cost base rules](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cost-base-of-asset) apply to taxable Australian property.


## Quoting an ABN

Suppliers can provide you with invoices. Other electronic or paper documents that quote an ABN and relate to the supply are also acceptable.

You can also record a supplier's ABN if it is displayed on their website and keep it with your record of the transaction.

You should [check an ABN](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/payments-you-need-to-withhold-from/withholding-from-suppliers/checking-an-abn) if you suspect that it might not be genuine or that it does not belong to the supplier who quoted it.

## Phone orders

If you order supplies by credit card over the phone, before placing the order ask the supplier for their ABN. If they don't have an ABN, do not authorise the supplier to charge the whole amount to your credit card as you will need to withhold tax from the payment.

## Internet orders

If the supplier:

- is based in Australia, you will need their ABN, otherwise you will have to withhold
- is not carrying on an [enterprise](https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/definitions#ato-Enterprise) in Australia, they will not need to quote an ABN and you will not need to withhold from payments you make to them
- the website URL doesn't identify the supplier as having an Australian connection, the supplier may not have a [permanent establishment](https://www.ato.gov.au/about-ato/international-tax-agreements/in-detail/permanent-establishments/permanent-establishments) in Australia, so you won't need to withhold. You should retain a record of the reason for not withholding.

## Overseas order

Foreign resident suppliers generally do not need to provide you with an ABN unless they are carrying on an enterprise in Australia which includes an agent or a branch office in Australia.

### Example: ordering goods from overseas

John orders goods for his business from an overseas business. The supplier doesn't need an ABN and John does not need to withhold. John may need to pay GST and customs duty when the goods are imported into Australia.

John also orders goods for his business from a different overseas business. The goods are delivered and John is invoiced by their agent in Australia. If the agent doesn't quote their ABN on the invoice or any other document, John will need to withhold.

End of example
## Regular suppliers

Regular suppliers can periodically quote their ABN to you to cover all the supplies they make to your business for a specified period, such as a financial year.

You must keep records that can verify the supplier, the supplier's ABN and the payments made in relation to the supplies.

At least once a year, you should check that the ABN quotation is correct and up to date.

If a regular supplier provides you with an ABN that is different from one previously quoted, check with the supplier – they may have accidentally quoted the wrong ABN. Alternatively, you can [check the ABN's validity](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/payments-you-need-to-withhold-from/withholding-from-suppliers/checking-an-abn).

## Corporate group

If you are part of a corporate group, you don't have to get or quote an ABN every time you pay or charge another group member for supplies as long as every member of the group:

- keeps a register of the ABN of all the other members that supply it
- is able to link each transaction to the correct ABN.


## What a branch is

A branch is formed where a business entity separately registers its branch to suit the structural, management and accounting arrangements of the organisation. When an entity registers a branch for GST or PAYG purposes, the entity is called the 'parent entity'.

## Who should use this form

Use this form if you want to:

- create a goods and services tax (GST) branch
- create a pay as you go (PAYG) withholding branch
- add a GST role to an existing PAYG withholding branch, or
- add a PAYG withholding role to an existing GST branch.

For details about the personal information we collect from you, see [Privacy notice – Application to register a GST or PAYG withholding branch](https://www.ato.gov.au/about-ato/commitments-and-reporting/in-detail/privacy-and-information-gathering/privacy-notices/application-to-register-a-gst-or-payg-withholding-branch).

## Download a form

You can download the form in portable document format (PDF) – [Application to register a GST or PAYG withholding branch (NAT 14834, PDF, 312KB)This link will download a file](https://www.ato.gov.au/api/public/content/02f3834ce939413292dcd99a7ff321b7).

## Lodge your form

Keep a copy of your completed form for your records. Lodge the original including any attachments using:

- secure mail through[ Online services for business](https://www.ato.gov.au/forms-and-instructions/gst-or-payg-withholding-branch-registration#LodgethroughOnlineservicesforbusiness)
- practice mail through [Online services for agents](https://www.ato.gov.au/forms-and-instructions/gst-or-payg-withholding-branch-registration#LodgethroughOnlineservicesforagents).

### Lodge through Online services for business

If you use Online services for business to lodge your form, it is more secure and will be processed faster than if you lodge by mail.

Follow these steps to lodge through secure mail in Online services for business:

1. Complete the form.
2. Save the completed form as a PDF to your computer.
3. Log in to [Online services for business](https://www.ato.gov.au/online-services/businesses-and-organisations-online-services/communication-in-online-services-for-business/).
4. Select **Communication**, then **Secure Mail**.
5. Create a **New** message.
6. Go to the **Topic** list and select **Registrations**.
7. Go to **Subject** list and select **Branching registration enquiry**.
8. Attach the form and any attachments.
9. Provide your contact details and complete the declaration.
10. Select **Send**.

You will receive a receipt number once you've lodged your form.

#### Tracking your progress

You can track your form's progress in Online services for business by selecting **Your dealings** from the **Communication** menu.

### Lodge through Online services for agents

Follow these steps to lodge through practice mail in Online services for agents:

1. Select **Communication**, then **Practice mail**.
2. Create a **New** message.
3. Go to the **Topic** list and select **Registrations**.
4. Go to the **Subject** list and select **Branching registration enquiry**.
5. At **Enquiry** type, select **I am enquiring on behalf of client**.
6. Search for your client and select them.
7. Attach the form and any attachments.
8. Provide your contact details and complete the declaration.
9. Select **Send**.

You will receive a receipt number once the message has successfully been sent.


## Benefits of salary sacrificing

You and your employer can agree on a salary sacrifice arrangement (also known as salary packaging or total remuneration packaging) to exchange part of your salary or wages for benefits of a similar value.

You can use a salary sacrifice arrangement to have some of your salary or wages paid into your super fund instead of to you. This effectively reduces your taxable income, meaning you pay less tax on your income. These concessional contributions are taxed in the super fund at a rate of 15%, which is generally less than your marginal tax rate.

## How salary sacrifice contributions are treated

Salary sacrifice super contributions do not:

- reduce the ordinary time earnings (OTE) that your employer is required to calculate your super entitlement on
- count towards the amount of super guarantee contributions that your employer is required to make.

Salary sacrifice super contributions are classified as employer super contributions, rather than your personal contributions. They are additional to your super guarantee entitlements. Your employer must still pay your full super guarantee as though there was no salary sacrifice arrangement in place.

The sacrificed component of your total salary package is not counted as assessable income for tax purposes. This means that it is not subject to pay as you go (PAYG) withholding tax. However, salary sacrifice super contributions are included in your [reportable super contributions](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-to-save-more-in-your-super/options-for-adding-to-your-super#Reportablesupercontributions) and must be included in your tax return.

If salary sacrifice super contributions are made to a complying super fund, the sacrificed amount is not considered a fringe benefit and is not subject to fringe benefits tax.

## Salary sacrifice limitations

Unless there are limitations specified in the terms of your employment, there is no limit to the amount you can salary sacrifice into super. However there are tax implications.

Consider whether the amount you wish to salary sacrifice will:

- mean you exceed your [concessional (before-tax) contributions cap](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap), which limits the amount that can be contributed to your super fund that is taxed at the concessional rate of 15%
- be subject to [Division 293 tax](https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/division-293-tax-on-concessional-contributions-by-high-income-earners), which applies in respect of your concessional contributions when your combined income and concessional super contributions for Division 293 purposes is more than $250,000.


## About taxable Australian property

Foreign and temporary residents are subject to capital gains tax (CGT) only on taxable Australian property.

Taxable Australian property includes:

- Australian real property, such as a house, apartment, commercial building or land
- an indirect interest in Australian real property
- a mining, quarrying or prospecting right in Australia
- a CGT asset that you have used to carry on a business through a permanent establishment in Australia
- an option or right over one of the above – for example, a contract to purchase property off the plan.

Foreign residents are subject to the full rate of [foreign resident capital gains withholding](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/foreign-resident-capital-gains-withholding/foreign-residents-and-variations) (FRCGW). FRCGW is applied to the sale price (or [market value](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/foreign-resident-capital-gains-withholding/foreign-resident-capital-gains-withholding-overview#Marketvalue) if non-arm's length) when selling Australian real property (property), unless there is a [variation notice](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/foreign-resident-capital-gains-withholding/foreign-residents-and-variations#Applyforavariation) that reduces the rate.

For CGT events happening on or after 20 May 2009, a leasehold interest in land in Australia is Australian real property.

If you [stop being an Australian resident](https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/how-changing-residency-affects-cgt), you are taken to have disposed of each of your assets that are not taxable Australian property for their market value at the time you stopped being a resident.

You have the option of disregarding capital gains and losses at that time. If you do this, your assets will be taken to be taxable Australian property. For example, if you disregard the capital gain or loss on Australian shares you own, those shares would become taxable Australian property.

## Indirect interests in Australian real property

If you are a foreign or temporary resident, any indirect interest you have in Australian real property is subject to CGT.

You have an indirect interest in Australian real property if both the following are true:

- you and your associates together own 10% or more of another entity, whether Australian or foreign – this is called the 'non-portfolio interest test'
- the market value of the assets of that entity is mainly attributable to Australian real property – this is called the 'principal asset test'.

### Indirect interests acquired before 11 May 2005

If you acquired an indirect interest in Australian real property before 11 May 2005, you are taken to have acquired it at its market value on 10 May 2005 if:

- you are a foreign resident or the trustee of a trust that was not a resident trust for CGT purposes
- the interest did not have the necessary connection with Australia but is taxable Australian property.

### Foreign currency

The entity through which you have an indirect Australian real property interest may keep its accounts mainly in a foreign currency.

If so, when you dispose of your interest you must apply [functional currency rules](https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/foreign-exchange-gains-and-losses/in-detail/guide-to-functional-currency-rules) to calculate your capital gain or loss.

This means if the entity uses the foreign currency to account for its transactions, you will convert your capital gain or loss into Australian currency.


## Work out your tax residency

You can use the [residency tests](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency#Residencytests) to work out if you're:

- an [Australian resident for tax purposes](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/australian-resident-for-tax-purposes)
- a [foreign or temporary resident](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency/foreign-and-temporary-residents) for tax purposes.

You can also be a temporary resident if you are an Australian resident or a foreign resident for tax purposes.

We don't use the same rules as the Department of Home Affairs. This means you:

- can be an Australian resident for tax purposes without being an Australian citizen or permanent resident
- may have a visa to enter Australia but are not an Australian resident for tax purposes.

For a summary of key information about residency status, download [Residency for tax purposes (PDF, 296KB)This link will download a file](https://www.ato.gov.au/api/public/content/f7fcb4c5-9e3e-40f3-ae29-8cabd6c7fcf7_TaxTimeToolkit_Residencyfortaxpurposes_pdf). This information is also available in Arabic, Chinese, Japanese, Korean and Vietnamese, go to [Information in your language](https://www.ato.gov.au/other-languages).

If you're a working holiday maker, see [Working holiday makers](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/coming-to-australia/working-holiday-makers).

## Residency tests

There are statutory tests to determine your residency:

- [Resides test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency#Residestest)
- [Domicile test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency#Domiciletest)
- [183-day test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency#BK_183daytest)
- [The Commonwealth superannuation test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/your-tax-residency#TheCommonwealthsuperannuationtest)

You can also use our [work out your residency status for tax purposes](https://www.ato.gov.au/calculators-and-tools/tax-return-work-out-your-tax-residency) tools to help work out your residency.

### Resides test

The primary test of tax residency is called the [resides test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-resides-test). If you reside in Australia, you're an Australian resident for tax purposes and you don't need to apply any of the other residency tests.

Some of the factors that can be used to determine residency status include:

- physical presence
- intention and purpose
- family
- business or employment ties
- maintenance and location of assets
- social and living arrangements.

If you don't satisfy the resides test, you'll still be an Australian resident if you satisfy one of 3 statutory tests.

### Domicile test

You're an Australian resident if your domicile (the place that is your permanent home) is in Australia, unless we are satisfied that your permanent place of abode is outside Australia.

A domicile is a place that is your permanent home by law. For example, it may be a domicile by origin (where you were born) or by choice (where you have changed your home with the intent of making it permanent).

For more information about this test, see [the domicile test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-domicile-test).

### 183-day test

You will be a resident under this test if you're actually present in Australia for more than half the income year, whether continuously or with breaks. unless it is established that your ‘usual place of abode’ is outside Australia and you have no intention of taking up residence here.

For more information about this test, see [the 183-day test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-183-day-test).

### The Commonwealth superannuation test

This test applies to Australian Government employees working at Australian posts overseas and who are contributing members of the Commonwealth Superannuation Scheme (CSS) or Public Sector Superannuation Scheme (PSS). It does not apply to members of the Public Sector Superannuation Accumulation Plan (PSSAP). If this is the case, you (and your spouse and children under 16) are a resident of Australia regardless of any other factors.

For more information about this test, see [the superannuation test](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-superannuation-test).


## Tax rates for foreign residents

You should advise your Australian financial institution (your payer) that you are a foreign resident so they can withhold tax in Australia at the time of payment. You won't need to declare this income in an Australian tax return. Your payer will then withhold tax at the rates shown in the table below.

Tax rates for foreign residentsTax rate for

Treaty countries

Non-treaty countries
%

Interest

Some agreements provide an exemption from withholding tax in certain circumstances.

10%

Unfranked dividends

Most agreements reduce the rate to 15%.

30%

Royalties

Most agreements reduce the rate to 10%.

30%

The full list of our tax treaties is maintained by Treasury and can be found at [Income tax treatiesExternal Link](https://treasury.gov.au/tax-treaties/income-tax-treaties/).

Tell your Australian payer your current overseas address so they can withhold the right rate of tax. If you don't, they may withhold tax at the higher rate of 47% (from 1 July 2017).

## Certificates of payment

If you need proof of payment of withholding tax to comply with the tax requirements of your own country, you can ask your payer to request a certificate of payment from us.

For more information on investment income and withholdings paid to foreign residents, see:

- [Investment income and royalties paid to foreign residents](https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/payments-you-need-to-withhold-from/withholding-from-investment-income/investment-income-and-royalties-paid-to-foreign-residents)
- [Withholding from dividends paid to foreign residents](https://www.ato.gov.au/businesses-and-organisations/international-tax-for-business/in-detail/income/withholding-from-dividends-paid-to-foreign-residents)
- [Withholding from royalties paid to foreign residents](https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/australian-income-of-foreign-residents/withholding-from-royalties-paid-to-foreign-residents).


## Eligibility to claim self-education expenses

You can claim a deduction for a self-education expense if, at the time you incur the expense, it has a sufficient connection to earning income from your employment activities.

Self-education has a sufficient connection to earning your employment income if it either:

- maintains or improves the specific skills or knowledge you require for your current employment activities
- results in, or is likely to result in, an increase in your income from your current employment activities.

Your employment activities are the duties and tasks expected of you to perform your job and are usually set out in your duty statement.

You may also be eligible if you undertake a course to maintain your right to receive a [taxable bonded scholarship](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/education-training-and-seminars/self-education-expenses#Taxablebondedscholarshiprecipients).

In some circumstances, only the expenses incurred for certain subjects or components of your self-education will have a sufficient connection to earning your employment income. For more information on when this will apply and how to apportion your expenses, see [Apportioning expenses](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/education-training-and-seminars/self-education-expenses#Apportioningexpenses).