Australia
Australia and New Zealand · AU · 47 treaties
What is Australia's tax system?
Australia operates a worldwide tax system. The top personal income tax rate is 45%.
Tax profile
| Corporate income tax | 25% |
| Withholding — dividends | 30% |
| Withholding — interest | 10% |
| Withholding — royalties | 30% |
| VAT / GST (standard) | 10% |
| Personal income (top rate) | 45% |
| Capital gains | 22.5% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | Yes |
| CFC rules | Yes |
| Transfer pricing | Strict |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Common questions
- What are the main tax rates in Australia?
- Australia's top personal income tax rate is 45%, corporate tax is 25%, and capital gains tax is 22.5%.
- How long does it take to become a tax resident in Australia?
- It takes 183 days to establish tax residency in Australia.
- Does Australia have a dividend withholding tax?
- Yes, Australia has a dividend withholding tax of 30%.
Tax residency
Hard to leaveWhat makes you a tax resident — and how hard it is to stop being one.
- resides test – you reside in Australia according to ordinary concepts, for example you have always lived in Australia or you come to Australia and live here permanently
- 6+ months continuous presence with work and home – you have been in Australia continuously for 6 months or more, working in one job and living in the same place
- more than 6 months in Australia in the income year, unless your usual home is overseas and you do not intend to live in Australia
- temporary absence – you go overseas temporarily and you do not set up a permanent home in another country
- domicile test – your domicile is in Australia and you do not have a permanent place of abode outside Australia
- 183‑day test – you are in Australia for more than half the income year (at least 183 days), unless your usual place of abode is outside Australia and you do not intend to reside in Australia
- Commonwealth superannuation test – you are an eligible employee for certain Australian government superannuation schemes (or their spouse/child) while overseas
Stopping Australian tax residency is difficult because Australian domicile and ‘permanent place of abode’ rules can keep you resident even after you leave, and you remain resident if you only go overseas temporarily without establishing a permanent home abroad. Cleanly breaking ties generally requires both long‑term absence and strong evidence of a new permanent abode outside Australia.
Source: Australian Taxation Office (ATO)
Tax treaty network (51)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Argentina | 15% | 12% | 15% |
| Austria | 15% | 10% | 10% |
| Belgium | 15% | 10% | 10% |
| Canada | 15% | 10% | 10% |
| Chile | 15% | 15% | 10% |
| China | 15% | 10% | 10% |
| Czechia | 15% | 10% | 10% |
| Denmark | 15% | 10% | 10% |
| Fiji | 20% | 10% | 15% |
| Finland | 15% | 10% | 5% |
| France | 15% | 10% | 5% |
| Germany | 15% | 10% | 5% |
| Greece | — | — | — |
| Hungary | 15% | 10% | 10% |
| India | 15% | 15% | 15% |
| Indonesia | 15% | 10% | 15% |
| Iceland | 15% | 10% | 10% |
| Ireland | 15% | 10% | 10% |
| Israel | 15% | 10% | 5% |
| Italy | 15% | 10% | 10% |
| Japan | 15% | 10% | 5% |
| Kiribati | 20% | 10% | 15% |
| South Korea | 15% | 15% | 15% |
| Malaysia | 15% | 15% | 15% |
| Malta | 15% | 15% | 10% |
| Mexico | 15% | 15% | 10% |
| Netherlands | 15% | 10% | 10% |
| New Zealand | 15% | 10% | 5% |
| Norway | 15% | 10% | 5% |
| Papua New Guinea | 20% | 10% | 10% |
| Philippines | 25% | 15% | 25% |
| Poland | 15% | 10% | 10% |
| Romania | 15% | 10% | 10% |
| Russia | 15% | 10% | 10% |
| Singapore | 15% | 10% | 10% |
| Slovakia | 15% | 10% | 10% |
| South Africa | 15% | 10% | 5% |
| Spain | 15% | 10% | 10% |
| Sri Lanka | 15% | 10% | 10% |
| Sweden | 15% | 10% | 10% |
| Switzerland | 15% | 10% | 5% |
| Taiwan | — | — | — |
| Thailand | 20% | 25% | 15% |
| Turkey | 15% | 10% | 10% |
| United Kingdom | 15% | 10% | 5% |
| United States of America | 30% | 15% | 5% |
| Vietnam | 15% | 10% | 10% |
| Croatia | 10% | 10% | 10% |
| Portugal | 10% | 10% | 10% |
| Slovenia | 15% | 10% | 10% |
| Ukraine | 15% | 10% | 10% |