Financial Services

International Tax Policy

Further information

International arrangements entered into by the University with 'non-residents of Australia' may give rise to taxation implications under Australia's domestic taxation laws and the taxation laws of the relevant foreign country.

Double tax agreements

Australia has thus far signed 44 Double Tax Agreements with foreign countries. Double Tax Agreements serve two main objectives:

  • allocating taxing rights between countries
  • combating tax avoidance.

Double Tax Agreements generally override Australia's domestic taxation laws.

When entering into arrangements with non-residents, it is important for the University to consider the provisions of:

  • Australia's domestic taxation laws
  • the taxation laws of the relevant foreign country
  • the Double Tax Agreement between Australia and the relevant foreign country.

Failure to consider the above carries taxation risks for both the University and the other parties to the transaction.

Residents vs. non-residents

A 'non-resident' under Australia's domestic tax law is a natural person or a company entity that is not a resident of Australia.

A natural person is a 'resident of Australia' under Australia's domestic tax law if he or she meets one of the following:

  • The person resides in Australia, within the ordinary meaning of that expression (to live in Australia permanently or for a considerable time).
  • The person is domiciled in Australia (unless the Commissioner of Taxation is satisfied that the individual's permanent place of abode (home) is outside Australia). A person's domicile is the place which is considered by law to be the person's permanent home.
  • The person has actually been in Australia, continuously or intermittently, during more than one half of the income year (unless the Commissioner is satisfied that the individual's usual place of abode (home) is outside Australia and he or she does not intend to take up residence in Australia).
  • The person is a member of a superannuation scheme established under the Superannuation Act 1990, an eligible employee for the purposes of the Superannuation Act 1976 or the spouse or a child of a person covered by either Act.

A company will be a 'resident of Australia' under Australia's domestic tax law if it is:

  • incorporated in Australia
  • if it is not incorporated in Australia, it carries on business in Australia and has either:
    • its central management and control in Australia
    • its voting power controlled by resident shareholders.

Determination of residency status is made by the employee and not the University.

List of double tax agreements with Australia

An Income Tax Treaties Table (PDF format 210 KB) can be accessed on the Australian Government Treasury website.

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