Moving from Australia to Hong Kong: When Do You Stop Being an Australian Tax Resident?

Leaving Australia does not automatically end your Australian tax residency. The Australian Taxation Office (ATO) decides this on facts and circumstances, using four statutory tests, and a Hong Kong visa does not settle it either. Because Australia and Hong Kong have no comprehensive double taxation agreement, there is also no treaty rule to break a tie if both sides treat you as resident. Checked 2026-10-10 against the official pages listed at the end.

Does leaving Australia automatically end your tax residency?

No. The ATO does not use the same rules as the Department of Home Affairs. You can be an Australian resident for tax purposes without being a citizen or permanent resident, and a visa does not decide the question. The ATO also says a fixed number of days abroad does not make someone a non-resident by itself. Each case is weighed against the tests below.

What are the four ATO tests?

The ATO’s “Your tax residency” page sets out four statutory tests.

Test	What it asks	Key point from the ATO page
Resides test	Do you reside in Australia?	The primary test. The ATO lists physical presence, intention and purpose, family, business or employment ties, where assets are kept, and social and living arrangements.
Domicile test	Is your domicile in Australia?	You are a resident unless the ATO is satisfied your permanent place of abode is outside Australia. Domicile can be by origin or by choice.
183-day test	Were you actually present in Australia for more than half the income year?	Presence can be continuous or with breaks. It does not apply if your usual place of abode is outside Australia and you do not intend to take up residence in Australia.
Commonwealth superannuation test	Are you an Australian Government employee at an overseas post in the CSS or PSS schemes?	Those employees, their spouse and children under 16 are residents regardless of other factors. The page excludes PSSAP.

The ATO also notes a 2013 legal decision. It shows that a person who does not cut their connection with Australia may still be treated as an Australian resident.

How do the ATO’s own examples work?

The ATO gives two examples on the same page. They are not Hong Kong cases, but they show how the tests are applied.

Emily leaves for a one-year teaching contract in Japan. She plans to travel and then return, and she rents out her Australian property. The ATO says she remains an Australian resident under the domicile test, because her domicile is in Australia and her permanent place of abode remains there.

Bronwyn takes a three-year overseas job with an option for three more. Her husband and three children move with her, and the family rents out the Australian house and rents a home overseas. The ATO says she is a foreign resident. She does not meet the resides test, and her permanent place of abode is outside Australia. The ATO adds that keeping the family home is relevant but not persuasive enough to change that outcome.

The two examples turn on the whole picture, not on one factor. Your own circumstances may point the other way.

What happens in the departure year?

If your status changes from resident to foreign resident during an income year, the ATO’s guidance says you should answer “yes” to “Are you an Australian resident?” on that year’s tax return. You are then taxed at resident rates for that income year. The tax-free threshold is pro-rated for the number of months you were a resident. The threshold amount is not stated on the official page checked.

The steps for the departure-year return are:

Answer “yes” to the residency question for the year you changed status.
Use resident rates for that income year.
Apply the pro-rata tax-free threshold for your resident months.
Claim the days you were not an Australian resident as exempt days.

Foreign residents do not pay the Medicare levy. The ATO’s living-overseas page also says that if you remain an Australian resident while living overseas, you still lodge a return and declare all foreign employment income. That includes exempt income, even where tax was withheld overseas. The Medicare levy surcharge applies to Australian residents above the income thresholds without appropriate private patient hospital cover. Travel insurance and overseas fund cover do not count.

What changes after you stop being a resident?

From the date you cease to be an Australian resident, foreign-source income no longer has to be returned in your Australian tax return. Australian-sourced interest, dividends and royalties received after that date are subject to withholding tax as a final tax. They are not included in the return.

The ATO’s page on changing residency also notes that a deferral choice on departure keeps assets within Australian capital gains tax until they are sold. Listed shares and units in managed funds are both CGT assets. The ATO states the deemed disposal rule for CGT assets generally and uses listed shares as its example. The page checked does not give further detail for Hong Kong residents.

Does Australia have a tax treaty with Hong Kong?

No. The Inland Revenue Department (IRD) list of comprehensive double taxation agreements concluded by Hong Kong does not include Australia, although New Zealand is on it. The Australian Treasury list of income tax treaties has no entry for Hong Kong. China and Singapore each have their own entry. The official pages checked do not say why there is no agreement or whether one is being negotiated.

Without a treaty, two things follow. First, there is no treaty tie-breaker. Australian residency is decided only by the ATO’s domestic tests. Second, Australian withholding on a Hong Kong resident’s income is at the non-treaty rates. These are 10% on Australian interest, 30% on unfranked dividends and 30% on royalties, as set out in the investment income material for this page. No agreement provision changes these rates.

What relief does Hong Kong offer without a treaty?

The IRD’s guide for people coming to work in Hong Kong (PAM 42) says a person with a Hong Kong employment may claim an exemption for income on which they have paid tax similar to salaries tax in a territory outside Hong Kong, for services rendered there. From year of assessment 2018/19, this exemption does not apply to territories with a comprehensive double taxation agreement with Hong Kong. Those territories get tax credit relief instead. Australia has no such agreement, so the exemption route is the relevant one for services rendered in Australia and taxed there. Evidence of the foreign tax paid is needed.

The IRD’s Certificate of Resident Status page sets out when an individual is treated as a Hong Kong resident. This applies if the person ordinarily resides in Hong Kong. It also applies if they stay in Hong Kong for more than 180 days in a year of assessment, or more than 300 days across two consecutive years of assessment, one of which is the relevant year. The certificate is for claiming benefits under Hong Kong’s agreements. The page checked does not describe any use for it against Australia.

Hong Kong’s year of assessment runs from 1 April to 31 March. Australia’s income year runs from 1 July to 30 June.

General information only. Individual cases need a registered tax agent in Australia or a qualified Hong Kong tax adviser. Other matters, including Australian state land tax, Hong Kong profits tax and stamp duty, Australian Age Pension portability, private health insurance rules and exchange rates between A$ and HK$, are not stated on the official pages checked.

Frequently asked questions

Does a Hong Kong visa mean I am no longer an Australian tax resident?

Not automatically. A visa does not decide tax residency. The ATO applies the resides, domicile, 183-day and Commonwealth superannuation tests to your facts and circumstances.

What happens if I can’t say when I stopped being a resident?

The ATO’s tests are applied to the whole picture for the income year. The ATO’s own examples show that family, property and the length of an overseas job can all matter. A registered tax agent in Australia can review your facts.

Do I still need to lodge an Australian return after I move?

If you were an Australian resident for part of the income year, you lodge a return for that year. You answer “yes” to the residency question and declare your income for the resident months. Foreign residents do not pay the Medicare levy.

Does Hong Kong tax me on my Australian income?

Hong Kong tax treatment depends on your Hong Kong residence and the nature of the income. The exemption for income taxed in another territory applies to services rendered there, and evidence of foreign tax is needed. A qualified Hong Kong tax adviser can review your position.

Sources

Checked 2026-10-10.