Key Facts to Know (2026):

• Primary test — “resides”: based on ordinary meaning; multi-factor

• Secondary tests: domicile + permanent place of abode, 183-day test (rebuttable presumption), superannuation test

• CGT Event I1: applies on ceasing Australian residency; deemed disposal of most CGT assets

• CGT Event I1 exception: Australian real property (taxable when actually sold)

• Superannuation for expats: contributions and access rules complex

• Non-resident capital gains tax: limited to Australian real property; broader for property-rich Australian entities

• Foreign resident CGT withholding: 12.5% on Australian real property sales >AUD $750K

• Australia has double-taxation treaties with most major countries?: yes (extensive network)

The Four Residency Tests

The ATO has four tests. Meeting ANY ONE makes you Australian tax resident:

1. Resides test (primary). Ordinary meaning of “reside.” Multi-factor: physical presence, intention, personal income paid into an Australian bank account, family/business/social ties, physical maintenance of Australian residence, assets/active investment, etc. It’s not black and white, so if you’re unsure get a professional opinion (we have specialist Aussie tax partners if you need help).

2. Domicile + permanent place of abode. If your domicile is Australia, you’re resident unless the ATO is satisfied you have a “permanent place of abode outside Australia” - for nomads this is often how they get you, you need to register one home-address even if you aren’t there for large portions of the year.

3. 183-day test. If in Australia 183+ days in any financial year (1 July-30 June).

4. Superannuation test. Applies to certain government employees, spouses, and dependents. Could also apply to nomads who continue to be paid as a normal employee by an Australian employer (i.e. they’re paying your super contributions automatically)

For nomads, tests 1 and 2 are usually decisive.

The Bywater Case Legacy

The 2016 High Court decision in Bywater Investments dealt with corporate residency but has personal-residency echoes, and sets a precedent. It reinforced that the ATO looks at substance over form.

For personal residency, this means the ATO looks at where your life is genuinely centered, not just what you claim on paper. It’s a practical test, and is subject to opinion - Bywater tried and failed to rely on technicalities to claim non-resident status. So, if your story doesn’t pass the pub-test it probably won’t pass the ATO’s residency test.

The “Permanent Place of Abode” Test

For domiciled Australians (most Australian nomads), the key test is: do you have a permanent place of abode outside Australia?

The ATO’s approach post-2020 case law:   

“Permanent” doesn’t mean “forever” — but does mean for a meaningful duration (a few years or more) 

Should be your habitual home for a sustained period   

Nomad travel from country to country, airbnb to airbnb, is NOT a permanent place of abode (but an actual lease agreement can be)

A single foreign base with genuine ties (housing, community, business) is what qualifies

Pure nomadism — traveling constantly with no permanent ‘home-base’ — is a specific ATO risk. You often remain Australian resident because you have no permanent place of abode elsewhere.

CGT Event I1

When you cease being Australian resident, CGT Event I1 triggers deemed disposal of most CGT assets at market value. Australian real property is excluded (taxed when sold).

For nomads with substantial Australian shares, crypto, private business interests — this deemed disposal can trigger significant tax.

Alternative: election to defer under certain conditions, treating assets as remaining Australian CGT assets. Comes with its own trade-offs, but is preferable for many Aussies who think they’re likely to return at some point in the future, or who don’t need liquidity and prefer to continue holding the assets long-term.

The Practical Nomad Path

For an Australian to genuinely become non-resident and avoid the pure-nomad trap:   

• Establish ONE genuine foreign base (not multi-country nomad life)   

• Have real ties there — home, community, tax residency   

• Sever Australian ties comprehensively   

• Manage CGT Event I1 timing carefully   

• Get professional Australian tax advice before departure

Superannuation Reality

Australian superannuation for non-residents is a specialist topic:   

• Contributions: some allowed, some restricted   

• Access: rules depend on age, work status, and residency   

• SMSF trustees: residency requirements strict   

• Withdrawals as non-resident: potentially preferable treatment for some components

Don’t neglect super planning in the nomad departure, as it is a key weapon wielded by the ATO to get you and claim back-taxes in the future.

Us Aussies are generally pretty laid back, but the ATO didn’t get the memo… so if you’re going to leave, be organised and do it properly.