UK Taxes for Expats Living in Australia
Australia has long been a popular destination for UK nationals, from ten-pound Poms to modern skilled migrants. Moving to Australia triggers the Statutory Residence Test and likely Split Year Treatment for your year of departure from the UK. The UK-Australia Double Taxation Agreement protects against most double taxation, but Australia's superannuation system and the mismatch between the two countries' tax years add layers of complexity for those with obligations in both countries.
Local tax authority
The UK-Australia Double Taxation Convention (2003) is modern and comprehensive. It covers income tax, capital gains, and pensions. Government pensions remain taxable only in the paying country (UK for UK government pensions). Private pensions are taxable in Australia for Australian residents. Dividend withholding is 15% (portfolio) or 0% (substantial holdings). Interest and royalties are taxable at 10%.
Australia-specific complexities for UK filers
- Australian superannuation is not recognised as a pension under UK-Australia DTA provisions in the same way as UK SIPP/occupational schemes
- Australia's tax year runs 1 July to 30 June — mismatching with the UK's 6 April to 5 April creates reporting complexity
- Australian CGT discount (50% for assets held over 12 months) does not apply for UK CGT purposes
- UK nationals must pass the Australian Permanent Residency or citizenship threshold to access superannuation on departure
- Medicare Levy (2%) is payable by Australian tax residents and may not qualify as a creditable foreign tax under UK rules
- FBAR-equivalent HMRC reporting (Offshore Assets reporting) applies to Australian accounts above reporting thresholds
What's different about filing from Australia
The year you leave the UK for Australia
For the UK tax year in which you depart for Australia, the Statutory Residence Test and Split Year Treatment apply. Your income in the UK-resident period (before departure) is fully UK-taxable. In the non-resident period (after departure), only UK-source income is taxable in the UK. This transition year return is the most complex one most UK expats ever file — it requires careful documentation of your departure date, day counts, and income by period.
Australian superannuation and UK tax
Australian superannuation (super) is Australia's mandatory employer pension contribution scheme. For UK purposes, super is not explicitly protected as a pension by the UK-Australia DTA, meaning contributions, investment growth, and distributions may be treated differently by HMRC than Australian domestic law treats them. UK nationals who worked in Australia and return to the UK may face UK tax on super distributions unless the treaty position is correctly managed. We advise on the most defensible treatment for your circumstances.
UK rental income and capital gains from Australia
UK rental income from UK property remains fully taxable in the UK regardless of your Australian residency. You must file a UK Self Assessment return for rental income, register with the Non-Resident Landlord Scheme, and pay UK income tax on net rental profits. If you sell UK residential property as a non-resident, CGT reporting to HMRC is due within 60 days of completion. Australian CGT may also apply if Australia is your tax residence at the time of sale, but the DTA provides credit relief.
Recommended UK plans for Australia-based expats
Frequently asked questions about UK taxes in Australia
Do I still need to file a UK tax return after moving to Australia?
For the year you leave, yes. After that, you need to file UK Self Assessment if you have UK-source income — property rental, certain pension income, UK investments, or UK capital gains. Many UK nationals in Australia are surprised that ongoing UK obligations exist even years after departure.
Is my Australian salary taxable in the UK?
No. Once you are a UK non-resident (under the SRT), your Australian employment income is taxable only in Australia, not in the UK. The UK-Australia DTA allocates employment income to the country where work is performed. You would not owe UK income tax on your Australian salary.
How is my UK government pension taxed in Australia?
Under the UK-Australia DTA, UK government pensions (including NHS, civil service, and armed forces pensions) remain taxable only in the UK, not in Australia. Private or occupational pensions are generally taxable in Australia (where you reside). The UK State Pension is taxable in the UK but Australia gives credit for UK tax paid. We map your pensions to the correct treaty treatment.
What happens to my ISA if I move to Australia?
Your UK ISA (Individual Savings Account) loses its tax-free status once you are a non-UK resident — HMRC only exempts ISA income for UK residents. Ongoing contributions are not permitted while you are non-resident. The income inside the ISA becomes taxable in Australia. We can help you decide whether to keep, transfer, or restructure UK savings vehicles on departure.