Living, Working or Retiring Overseas as an Australian

More Australians are living, working, or retiring overseas than ever before. Whether driven by career, lifestyle, or adventure, moving abroad is exciting—but it also brings financial and tax implications that can be complex and costly if not managed appropriately.

Whether you're going overseas for a few years, spending part of the year abroad in retirement, or relocating permanently, it's essential to understand how Australian tax, superannuation, property, and Centrelink rules apply to your situation.

Start With Tax Residency

A common misconception is that moving overseas ends your dealings with the Australian Taxation Office (ATO). In reality, your tax obligations depend on your residency status for tax purposes, which is based on your behaviour and intentions, not just your location.

If you become a non-resident for tax purposes, your obligations change—but don’t vanish. For example, you may not need to lodge a tax return unless you still receive Australian-sourced income, including:

• Rental income from Australian property

• Capital gains from taxable Australian assets

• Interest or dividends not fully taxed at the source

If you do not receive such income, you should notify the ATO by lodging a non-lodgement advice online. Be aware that incorrect or delayed lodgement can attract penalties.

Student Debt Still Applies Abroad

If you have a HELP or HECS debt, moving overseas does not cancel your obligations. Since 2017, Australians with student debt must report worldwide income if residing overseas for more than six months.

Your foreign income is converted to Australian dollars and assessed under the same repayment thresholds as if you were residing in Australia. If your income exceeds the threshold, you must make repayments. The ATO can establish repayment plans, and penalties may apply if you fail to report.

Owning Property While Overseas

Australian property ownership continues to have tax consequences for non-residents.

If you rent out your property, rental income is taxable from the first dollar, and you may be taxed at non-resident rates, which often result in higher marginal tax rates.

Crucially, since July 2020, non-residents for tax purposes who sell their former Australian main residence may no longer be eligible for the CGT main residence exemption. This could lead to a significant tax liability, even on long-held family homes.

If you're overseas and planning to sell, seek qualified tax advice—this is often one of the costliest mistakes expats make.

Superannuation and Living Overseas

Superannuation remains one of the most tax-effective ways to save for retirement in Australia, but living overseas may affect how it's treated both here and abroad.

Key considerations:

• Most funds only pay benefits into Australian bank accounts.

• You can access your super once eligible, regardless of your country of residence.

• Some countries treat Australian superannuation payments as taxable foreign pensions.

Super benefits that are tax-free in Australia may be taxed in your new country. Seek advice to understand the tax treatment in both jurisdictions and consider structuring withdrawals to optimise after-tax outcomes.

Retirement Abroad: Timing Is Everything

Many Australians envision retirement that includes periods abroad—spending winters in Australia and summers in Europe, for example.

While this is achievable, there are considerations:

• You typically can’t be a tax resident of two countries simultaneously under a Double Tax Agreement.

• Many jurisdictions deem you a tax resident after spending 183+ days in a year there.

• Becoming tax resident overseas may impact how your superannuation and other assets are taxed.

Some retirees manage this by limiting time abroad to remain Australian tax residents. Whether that suits you depends on personal priorities and financial implications.

Centrelink and Government Benefits

Centrelink entitlements are impacted by extended overseas travel or residency.

Short-term travel (under six weeks) is usually acceptable if reported. However, extended or permanent relocation can result in reduced or cancelled payments.

The Age Pension may still be payable abroad if Australia has a reciprocal Social Security Agreement with your country of residence. However:

• Payments may reduce after 26 weeks.

• You may be required to apply for a local pension first.

• Local cost of living may affect your actual standard of living.

Always notify Centrelink of travel or relocation plans to avoid penalties or overpayments.

Returning to Australia: Key Compliance Steps

If you plan to return permanently, proactive planning will ensure a smoother transition.

Checklist:

• Apply for a movement record from the Department of Home Affairs (to help prove continuous residency, which affects Medicare and Lifetime Health Cover loadings).

• Re-establish tax residency with the ATO and update your address details.

• Re-enrol in Medicare.

• Review superannuation strategies and consider whether any concessional contributions or rollovers are appropriate.

• Consider obtaining advice around timing for realising offshore assets (to avoid unexpected CGT outcomes).

Cross-Border Estate Planning

Owning assets in more than one country significantly increases the complexity of estate planning.

A common misconception is that one global Will is sufficient. In practice, it is often preferable to have separate Wills for each jurisdiction where you own assets—ensuring compliance with local succession laws and avoiding delays or invalidation.

You should also understand local laws relating to forced heirship, probate, and inheritance taxes where applicable.

Final Thoughts

Living, working, or retiring overseas can be deeply rewarding—but navigating the regulatory and financial systems in two countries adds complexity.

Key compliance considerations include:

• Your Australian tax residency status.

• How overseas income and assets interact with Australian taxation rules.

• Centrelink and superannuation rules when living abroad.

• Ongoing obligations such as HELP debt or property ownership.

• Record-keeping and notification obligations to Australian authorities.

Engaging with a qualified financial adviser or tax professional before and during your time overseas can help you stay compliant, avoid costly mistakes, and build a financial strategy that supports your global lifestyle.

Disclaimer: This information is general in nature and does not constitute legal, tax, or financial advice. For advice tailored to your circumstances, please consult an appropriately qualified professional. Compliance obligations referenced align with ASIC, ATO, and WT Financial Group policies as at January 2025.