The complete ATO guide for Australians in Dubai — residency four tests, domicile + permanent place of abode, CGT main residence exemption changes, super, HECS/HELP overseas, and salary take-home comparisons.
Desk research against primary sources. Figures are traced to the issuing UAE authority and linked on the page.
Australia is not a citizenship-based tax country — unlike the United States, the ATO taxes based on residency. This means once you have genuinely established non-residency by satisfying the domicile test with a permanent place of abode in the UAE, your Dubai salary is not taxed by Australia. The challenge is that the ATO applies a nuanced four-test analysis and will not automatically accept that moving overseas makes you non-resident. Australian-source income — rental property, ASX dividends, bank interest — remains taxable regardless. Key traps include the 2017 removal of the main residence exemption for foreign residents, HECS/HELP repayment obligations that follow you overseas, and the deemed disposal of CGT assets on departure. This guide is the consolidated ATO tax playbook for Australian expats in Dubai.
All figures and rules are current to April 2026. Australian tax law changes annually; individual circumstances vary significantly. This is general information, not legal or tax advice. Engage a registered Australian tax adviser before making material decisions.
The 30-second answer
Residency test: ATO uses four tests; the domicile test (permanent place of abode in UAE) is the primary mechanism for most Dubai expats.
Dubai salary: Not ATO-taxable once non-resident.
Australian-source income: Still taxable — rental, unfranked dividends, bank interest. Non-resident rates start at 32.5% with no tax-free threshold.
Main residence exemption: Denied if you sell while a non-resident (since 2017). Sell before you leave or re-establish residency before selling.
Super: Stays preserved; cannot access early under DASP (citizens only). Employer SG stops when employed by UAE entity.
HECS/HELP: Repayments still required on worldwide income above the threshold (~AUD 54K). Lodge annually.
Medicare levy: Not payable as a non-resident.
CRS reporting: UAE banks report account information to the ATO via Common Reporting Standard.
The four ATO residency tests — how Australia determines if you're still a resident
Unlike the UK's mechanical Statutory Residence Test, Australian tax residency is determined by a combination of four tests. You are an Australian tax resident if you satisfy any one of them. You cease being a resident only when you fail all four.
The four Australian tax residency tests
Test
Core rule
Relevance for Dubai expats
1. Resides test (primary)
Are you 'ordinarily residing' in Australia based on behaviour, habits, intentions, social connections, and actual presence?
If you relocate to Dubai with genuine intent, bring family, and make Dubai your settled base, you will typically cease to 'reside' in Australia quickly. The most fact-dependent test.
2. Domicile test (KEY test for UAE expats)
Your domicile is Australia UNLESS you have established a permanent place of abode outside Australia.
This is the test most Dubai-based Australians must satisfy. Requires 12-month+ UAE lease or ownership, settled UAE life, and documented evidence. Key case: Harding v Commissioner of Taxation (2019).
3. 183-day test
You are a resident if you are actually in Australia for 183+ days in the income year, unless your usual place of abode is outside Australia and you have no intention to reside in Australia.
Rarely triggered for genuine Dubai expats. Keep Australian visits well under 183 days total per Australian financial year (1 July–30 June) to avoid any risk.
4. Commonwealth superannuation test
Members of PSS (Public Sector Superannuation) or CSS (Commonwealth Superannuation Scheme) are deemed Australian residents regardless of actual location.
Applies only to Australian Public Service / Defence / related employees. Private sector professionals are unaffected.
Test1. Resides test (primary)
Core ruleAre you 'ordinarily residing' in Australia based on behaviour, habits, intentions, social connections, and actual presence?
Relevance for Dubai expatsIf you relocate to Dubai with genuine intent, bring family, and make Dubai your settled base, you will typically cease to 'reside' in Australia quickly. The most fact-dependent test.
Test2. Domicile test (KEY test for UAE expats)
Core ruleYour domicile is Australia UNLESS you have established a permanent place of abode outside Australia.
Relevance for Dubai expatsThis is the test most Dubai-based Australians must satisfy. Requires 12-month+ UAE lease or ownership, settled UAE life, and documented evidence. Key case: Harding v Commissioner of Taxation (2019).
Test3. 183-day test
Core ruleYou are a resident if you are actually in Australia for 183+ days in the income year, unless your usual place of abode is outside Australia and you have no intention to reside in Australia.
Relevance for Dubai expatsRarely triggered for genuine Dubai expats. Keep Australian visits well under 183 days total per Australian financial year (1 July–30 June) to avoid any risk.
Test4. Commonwealth superannuation test
Core ruleMembers of PSS (Public Sector Superannuation) or CSS (Commonwealth Superannuation Scheme) are deemed Australian residents regardless of actual location.
Relevance for Dubai expatsApplies only to Australian Public Service / Defence / related employees. Private sector professionals are unaffected.
The domicile test in detail — permanent place of abode
For most private-sector Australians in Dubai, satisfying the domicile test is the central task. The ATO looks at all relevant facts to determine whether a permanent place of abode has been established. Key factors considered:
Nature and duration of UAE presence: longer periods with no fixed end date weigh strongly in favour of non-residency.
Type of UAE housing: a 12-month+ signed lease or UAE property purchase is a strong indicator. Short-term hotel accommodation is not.
Family location: bringing spouse and children to Dubai demonstrates settled UAE life. Spouse and children remaining in Australia is a significant tie back.
Social and economic ties: UAE employer (not just an Australian secondment), UAE bank accounts, UAE driving licence, UAE mobile number, UAE schools for children — all support non-residency.
Frequency and duration of Australian return visits: frequent, lengthy Australian visits undermine a UAE permanent place of abode, particularly if the person stays at an Australian home they own. Occasional holiday visits are permissible.
Maintenance of Australian home for personal use: keeping your Australian home available for personal use (not rented commercially) suggests Australian place of abode is maintained.
Harding v Commissioner of Taxation (2019) — the leading case
In Harding v Commissioner of Taxation [2019] FCAFC 29, the Full Federal Court held that Mr Harding — an Australian citizen working in Bahrain, holding a long-term Bahraini apartment — had established a permanent place of abode in Bahrain even though he returned to Australia frequently and had family connections there. The Court confirmed that "permanent" means indefinitely or settled, not "forever." The case is strong authority that a Dubai expat with a genuine long-term UAE base can satisfy the domicile test despite maintaining some Australian connections. Document your UAE housing, employment, and settled life carefully.
AUD vs Dubai take-home — the tax advantage in numbers
For Australians considering Dubai, the headline benefit is clear: Australian marginal rates reach 37–45% at middle-to-high incomes; UAE has zero income tax. This is the comparison on equivalent gross salaries:
AUD take-home vs Dubai gross — 2025–26 (approximate, resident rates for Australia include 2% Medicare levy)
Gross salary (AUD)
Australia take-home (after tax + Medicare)
Effective rate (Aus)
Dubai gross (full retention, 0% tax)
Annual tax benefit of Dubai
AUD 80,000
~AUD 61,500
~23%
AUD 80,000 (full)
~AUD 18,500/year
AUD 130,000
~AUD 93,500
~28%
AUD 130,000 (full)
~AUD 36,500/year
AUD 180,000
~AUD 120,000
~33%
AUD 180,000 (full)
~AUD 60,000/year
AUD 250,000
~AUD 155,000
~38%
AUD 250,000 (full)
~AUD 95,000/year
Gross salary (AUD)AUD 80,000
Australia take-home (after tax + Medicare)~AUD 61,500
Australia figures are estimates using 2025–26 resident tax rates including 2% Medicare levy and standard deductions; actual take-home depends on deductions, offsets, and super. Dubai figures assume zero-tax retention. Does not account for higher cost of housing in Dubai vs comparable Australian cities.
Australian-source income reduces the advantage
If you retain Australian rental property, ASX dividend income, or significant bank interest, those amounts remain ATO-taxable at non-resident rates (32.5%+, no tax-free threshold). A high-yielding Australian property portfolio can still generate meaningful ATO tax obligations even while you are non-resident and earning in Dubai. Factor Australian-source income into your planning.
Non-resident tax rates on Australian-source income
As a non-resident, Australia taxes only your Australian-source income — but the rates are higher than residents pay, and there is no tax-free threshold.
Australian non-resident marginal tax rates 2025–26
Australian-source income (AUD)
Marginal rate
Medicare levy
Note
AUD 0 – 135,000
32.5%
Nil (non-residents exempt)
No tax-free threshold for non-residents. First dollar is taxable.
AUD 135,001 – 190,000
37%
Nil
Standard resident rate also 37% at this level.
Above AUD 190,000
45%
Nil
Top rate. Includes the 2% temporary budget repair levy (if reintroduced).
Australian-source income (AUD)AUD 0 – 135,000
Marginal rate32.5%
Medicare levyNil (non-residents exempt)
NoteNo tax-free threshold for non-residents. First dollar is taxable.
Australian-source income (AUD)AUD 135,001 – 190,000
Marginal rate37%
Medicare levyNil
NoteStandard resident rate also 37% at this level.
Australian-source income (AUD)Above AUD 190,000
Marginal rate45%
Medicare levyNil
NoteTop rate. Includes the 2% temporary budget repair levy (if reintroduced).
Withholding rates on passive Australian-source income
Non-resident withholding tax on Australian passive income
Income type
Domestic withholding rate
Under UAE–Australia DTA
Action
Bank interest
10%
10%
Notify bank of non-resident status; 10% withheld at source. Declare on Australian return.
Unfranked dividends (ASX)
30%
15% (beneficial owner)
Declare UAE tax residency to share registry or broker. Apply DTA rate reduction.
ActionNo additional withholding if fully franked; partially franked: unfranked portion at DTA rate.
Income typeAustralian rental income
Domestic withholding rateNo withholding; taxed at marginal non-resident rate via self-assessment
Under UAE–Australia DTANot reduced — rental taxed at source in Australia under DTA
ActionLodge annual Australian tax return with rental income. No withholding agent — self-assess.
Income typeRoyalties
Domestic withholding rate30%
Under UAE–Australia DTA10%
ActionDeclare UAE residency to payer; apply DTA rate.
CGT, main residence exemption, and your Australian home
The 2017 main residence exemption restriction — the biggest trap
From 9 May 2017 (with a transitional period ending 30 June 2020), foreign residents are denied access to the main residence exemption (MRE) on the sale of Australian residential property. This is one of the most significant tax changes for Australian expats and is widely misunderstood.
Critical: sell before you leave or before you re-establish residency
If you own an Australian home and you are a non-resident at the time of sale, the entire capital gain is taxable — even if the property was your principal place of residence for decades. There is no partial exemption for time as a resident. The practical options: (1) Sell before you depart Australia while still a resident — MRE applies in full. (2) Return to Australia, re-establish residency, move back into the home, and sell after meeting the MRE requirements. Option 1 is simpler. If neither is done, you face CGT at non-resident rates (32.5%+) on the full gain.
Deemed disposal on departure — Section 104-160
When you cease being an Australian tax resident, you are deemed to have disposed of all your CGT assets (other than "taxable Australian property," which includes Australian real estate) at market value on your departure date. This can trigger a capital gain in your departure year.
CGT treatment of assets on ceasing Australian residency
Asset type
On departure
Deemed disposal election (s.104-165)
Advice
Australian real estate / property
NOT subject to deemed disposal — it is 'taxable Australian property'
N/A — taxable Australian property always subject to Australian CGT
Sell before departure (while resident, MRE available) if you intend to sell.
ASX shares / ETFs
Deemed disposed at market value on departure date
Can elect to retain Australian CGT treatment (original cost base preserved; Australian CGT applies on eventual sale)
Consider selling shares with gains before departure (CGT 50% discount available as resident). If you elect, Australian CGT applies on eventual disposal even as non-resident.
Managed funds / unit trusts
Deemed disposed on departure
Election available per-asset
Complex — get advice. 50% discount available as resident on pre-departure accrued gains.
Foreign shares (US, UK, etc.)
Deemed disposed on departure
Election available
If held in Australian brokerage, Australian CGT has applied. Post-departure, depends on election.
Business assets (private company shares)
Deemed disposed; Small Business CGT concessions may apply
Election available
Specialist advice required — concession eligibility may be time-sensitive.
Asset typeAustralian real estate / property
On departureNOT subject to deemed disposal — it is 'taxable Australian property'
Deemed disposal election (s.104-165)N/A — taxable Australian property always subject to Australian CGT
AdviceSell before departure (while resident, MRE available) if you intend to sell.
Asset typeASX shares / ETFs
On departureDeemed disposed at market value on departure date
Deemed disposal election (s.104-165)Can elect to retain Australian CGT treatment (original cost base preserved; Australian CGT applies on eventual sale)
AdviceConsider selling shares with gains before departure (CGT 50% discount available as resident). If you elect, Australian CGT applies on eventual disposal even as non-resident.
Asset typeManaged funds / unit trusts
On departureDeemed disposed on departure
Deemed disposal election (s.104-165)Election available per-asset
AdviceComplex — get advice. 50% discount available as resident on pre-departure accrued gains.
Asset typeForeign shares (US, UK, etc.)
On departureDeemed disposed on departure
Deemed disposal election (s.104-165)Election available
AdviceIf held in Australian brokerage, Australian CGT has applied. Post-departure, depends on election.
Asset typeBusiness assets (private company shares)
On departureDeemed disposed; Small Business CGT concessions may apply
Deemed disposal election (s.104-165)Election available
AdviceSpecialist advice required — concession eligibility may be time-sensitive.
Reasons to sell the Australian home before departing
Main residence exemption applies in full — zero CGT on a property that has been your PPOR
Free up capital for Dubai property purchase or investment portfolio
Eliminate landlord obligations from afar — tenant management, maintenance
Clean break — no ATO lodgement required for property income
Avoids the complex non-resident CGT exposure on future sale
Reasons to keep the Australian home
Long-term hold expectation — anticipate returning to Australia in 5–7 years
Net rental yield covers mortgage repayments with positive cashflow
Strong capital growth market (major cities) — long-run appreciation
Provides optionality to return to Australia without re-entering a hot market
Mortgage is low-rate fixed — can be switched to investment loan
Superannuation — what happens to your super in Dubai
Superannuation is one of the most common questions for Australians moving abroad, and also one of the most misunderstood. The key points:
Employer SG contributions — stopped
Australian employer Superannuation Guarantee (SG) contributions (11.5% in 2025–26) only apply where an employer is subject to Australian superannuation law. A UAE employer paying you a Dubai salary has no SG obligation. Your super balance will stop growing from employer contributions once you switch to full UAE employment.
Voluntary contributions — may continue
You may be able to make voluntary non-concessional (after-tax) contributions to your Australian super fund while non-resident, subject to:
The non-concessional contribution cap (AUD 120,000/year or up to AUD 360,000 using the bring-forward rule, if under age 75)
Your total super balance must be under the relevant threshold (AUD 1.9M+ typically blocks further non-concessional contributions)
The work test may apply if you are age 67–74 (must have worked 40 hours in any 30-day period in the financial year)
Access — preserved until preservation age
Moving to Dubai does not trigger early access to super. The Departing Australia Superannuation Payment (DASP) — which allows early super access on departure — is only available to:
Non-citizens / non-permanent residents who held a temporary Australian visa, AND
Have permanently departed Australia
Australian citizens and permanent residents moving to Dubai do not qualify for DASP. Super must remain in the Australian fund until preservation age (60 for most; up to 65 for some older members).
Investment management while offshore
Your super fund continues to invest and your balance grows tax-advantageously at 15% fund tax. Review your investment option selection — the default balanced option may not be optimal for your timeframe. Most funds allow online switching. Keep your fund updated with your overseas address and ensure annual member statements are received.
Lost super — check before you leave
Many Australians have small, lost super accounts from previous employers. Use the ATO's myGov Super consolidation tool to find and roll over lost super into your preferred fund before departing. Consolidating before departure simplifies ongoing management and reduces duplicate fees.
HECS/HELP debt — the ATO follows you to Dubai
Since 1 January 2016, HELP (Higher Education Loan Program) repayment obligations follow Australian citizens overseas. This is one of the most overlooked ATO obligations for expats.
How the overseas HELP obligation works
If your worldwide income (converted to AUD at ATO-published exchange rates) exceeds the annual HELP repayment threshold (~AUD 54,435 for 2025–26; check ato.gov.au for current), you are required to lodge a Worldwide Income Assessmentwith the ATO.
This is separate from your regular Australian tax return (which covers only Australian-source income as a non-resident). The worldwide income assessment captures your Dubai salary for HELP calculation purposes only — it does not mean you pay Australian income tax on your Dubai salary.
The ATO calculates your compulsory HELP repayment at the applicable percentage rate (1%–10% of repayable income, depending on the band). This repayment is sent to the ATO and reduces your HELP balance.
Failure to lodge carries penalties and interest. The ATO also applies indexation (CPI-linked) to your outstanding HELP balance annually — delaying repayment is expensive.
Most expats forget this — don't be one of them
A Dubai salary of AED 30,000/month (≈ AUD 14,700/month ≈ AUD 176,000/year) is well above the HELP threshold. Even a more modest AED 15,000/month salary (≈ AUD 88,000/year) triggers compulsory HELP repayments. The ATO's overseas HELP collection is increasingly enforced. Lodge your worldwide income assessment through myTax or a registered agent every year.
Departure planning sequence — 8 steps
1
Get a pre-departure tax ruling or advice
Book a session with an Australian tax adviser who specialises in expatriate tax — ideally 3–6 months before you depart. Confirm which residency test applies to your situation, whether you have any CGT asset elections to make before departure, and whether your Australian home needs to be sold or rented.
On ceasing Australian tax residency, you are deemed to have disposed of certain CGT assets (shares, managed funds, investment property in some cases) unless you elect to retain Australian CGT treatment. The election must typically be made in the tax return for the year of departure. Understand the deemed disposal rules and decide whether to elect or accept the deemed disposal. Selling some assets before departure while still a resident can preserve access to the CGT 50% discount.
Time: Before departure
3
Decide what to do with the family home
Since 9 May 2017, foreign residents are denied the main residence exemption (MRE) when selling while non-resident. If you intend to sell your Australian home, consider selling before you leave or re-establishing residency before sale. If you keep it as a rental, be aware that ATO will tax the eventual sale gain without the MRE discount if you are non-resident at that time.
Time: Before departure
4
Establish your UAE permanent place of abode
For the domicile test to break your Australian residency, you need a 'permanent place of abode' in the UAE. Sign a 12-month+ residential lease in Dubai (or purchase), move your family, open UAE bank accounts, and document all the steps. Bring family with you if possible — spouse and children remaining in Australia is a strong tie back. Keep a departure-date diary noting when your UAE home was established.
Time: On arrival in UAE
5
Notify relevant Australian institutions
Notify your Australian bank, super fund, and share registry that you are now a non-resident. Non-residents face withholding tax on Australian bank interest (10%), unfranked dividends (30%, reduced by DTA), and franked dividends (balance of 30% less franking credit). Update your TFN declaration or W-8BEN equivalent with each payer. Your bank may reduce interest withholding to 10% automatically on notification.
Time: Within weeks of departure
6
Lodge your final Australian resident tax return
Your final resident return covers the period from 1 July to your departure date (or the date you ceased being a resident under the four-tests analysis). After that date, you file as a non-resident with only Australian-source income included. Use the ATO's myTax or engage an accountant. Declare your departure date; claim any CGT 50% discount entitlements on assets sold before departure.
Time: By 31 October following departure year
7
Set up Australian-source income tracking
As a non-resident, you still owe ATO tax on Australian-source income: rental income, ASX dividends (unfranked portion), bank interest, HELP repayments. Set up a simple spreadsheet or use a tax agent to track these annually. Australian financial year runs 1 July–30 June; lodgement deadline typically 31 October (or 15 May if using a registered tax agent).
Time: Ongoing annually
8
Monitor HECS/HELP obligations
The ATO requires overseas residents with HELP debt to lodge a Worldwide Income Assessment annually if worldwide income exceeds the repayment threshold (approximately AUD 54,435 for 2025–26; check ato.gov.au for current figure). You must report total worldwide income, and the ATO calculates the HELP compulsory repayment owed at Australian marginal rates. Do not ignore this — penalties apply.
Time: Annually
Non-resident vs resident treatment — comparison by income type
ATO treatment of income types: Australian resident vs non-resident (UAE-based)
Income / asset type
Australian resident treatment
Non-resident treatment
Key planning point
Dubai salary (UAE-source)
Fully taxable at marginal rates (up to 47% including Medicare)
Not taxable by ATO — UAE source only
The primary financial benefit of establishing non-residency.
Australian rental income
Taxable at marginal rates; 50% CGT discount on sale after 12 months
Taxable at 32.5–45% non-resident rates; no tax-free threshold; MRE lost on sale if non-resident
Sell before departure if MRE value is significant. Retain if cashflow positive and long-term hold.
ASX dividends (unfranked)
Taxable at marginal rate
30% withholding (15% under UAE DTA)
Declare UAE residency to broker/registry to access DTA reduced rate.
ASX dividends (fully franked)
Taxable but franking credit offsets
Withholding offset by franking credit — effectively 0% additional withholding
Franked dividends are relatively efficient for non-residents.
Australian bank interest
Taxable at marginal rate
10% withholding at source
Notify bank of non-residency. 10% is often lower than marginal rate — efficient.
CGT on Australian shares
50% CGT discount after 12 months; taxed at marginal rate on 50%
Deemed disposal on departure; if retained via election, Australian CGT on sale; 50% discount available if held 12+ months and resident for any gain period
Consider selling (using 50% discount) before departure if gains are material.
CGT on Australian real estate
50% CGT discount after 12 months; MRE for PPOR
No MRE (since 2017); 50% CGT discount may not apply to non-resident (subject to rules); full gain taxable at non-resident rates
Sell principal residence before departing. Highest priority pre-departure action.
HELP/HECS debt
Repaid via tax withholding / tax return based on Australian income
Worldwide income assessed annually; compulsory repayment if above threshold
Lodge worldwide income assessment annually. Do not ignore.
Medicare levy
2% of taxable income
Not applicable
Non-residents are exempt — a modest saving.
Superannuation
Employer SG 11.5%; concessional tax environment; preserved until 60
UAE employer: no SG obligation; balance frozen; no early access for citizens
Consolidate before departure. Review investment option. Make voluntary contributions if eligible.
Income / asset typeDubai salary (UAE-source)
Australian resident treatmentFully taxable at marginal rates (up to 47% including Medicare)
Non-resident treatmentNot taxable by ATO — UAE source only
Key planning pointThe primary financial benefit of establishing non-residency.
Income / asset typeAustralian rental income
Australian resident treatmentTaxable at marginal rates; 50% CGT discount on sale after 12 months
Non-resident treatmentTaxable at 32.5–45% non-resident rates; no tax-free threshold; MRE lost on sale if non-resident
Key planning pointSell before departure if MRE value is significant. Retain if cashflow positive and long-term hold.
Income / asset typeASX dividends (unfranked)
Australian resident treatmentTaxable at marginal rate
Non-resident treatment30% withholding (15% under UAE DTA)
Key planning pointDeclare UAE residency to broker/registry to access DTA reduced rate.
Income / asset typeASX dividends (fully franked)
Australian resident treatmentTaxable but franking credit offsets
Key planning pointFranked dividends are relatively efficient for non-residents.
Income / asset typeAustralian bank interest
Australian resident treatmentTaxable at marginal rate
Non-resident treatment10% withholding at source
Key planning pointNotify bank of non-residency. 10% is often lower than marginal rate — efficient.
Income / asset typeCGT on Australian shares
Australian resident treatment50% CGT discount after 12 months; taxed at marginal rate on 50%
Non-resident treatmentDeemed disposal on departure; if retained via election, Australian CGT on sale; 50% discount available if held 12+ months and resident for any gain period
Key planning pointConsider selling (using 50% discount) before departure if gains are material.
Income / asset typeCGT on Australian real estate
Australian resident treatment50% CGT discount after 12 months; MRE for PPOR
Non-resident treatmentNo MRE (since 2017); 50% CGT discount may not apply to non-resident (subject to rules); full gain taxable at non-resident rates
Key planning pointSell principal residence before departing. Highest priority pre-departure action.
Income / asset typeHELP/HECS debt
Australian resident treatmentRepaid via tax withholding / tax return based on Australian income
Non-resident treatmentWorldwide income assessed annually; compulsory repayment if above threshold
Key planning pointLodge worldwide income assessment annually. Do not ignore.
Income / asset typeMedicare levy
Australian resident treatment2% of taxable income
Non-resident treatmentNot applicable
Key planning pointNon-residents are exempt — a modest saving.
Income / asset typeSuperannuation
Australian resident treatmentEmployer SG 11.5%; concessional tax environment; preserved until 60
Non-resident treatmentUAE employer: no SG obligation; balance frozen; no early access for citizens
Key planning pointConsolidate before departure. Review investment option. Make voluntary contributions if eligible.
Banking, currency, and CRS reporting
Maintaining Australian bank accounts
Keep your Australian bank accounts open — as non-resident accounts. Notify your bank (CommBank, Westpac, NAB, ANZ) of your overseas address and non-resident status. The bank will apply 10% withholding to interest. Most major Australian banks continue to serve non-resident customers with online access, though some products (government bonds, certain term deposits) may restrict non-residents.
AUD–AED remittances
The AED is pegged to the USD (3.6725 AED per USD). AUD/AED fluctuates with the AUD/USD rate. For Australians sending money home:
Wise: mid-market rate + 0.4–0.8% fee. Best for most transfers. Set up auto-transfers monthly. AED to AUD typically best on Wise.
OFX (formerly OzForex — Australian company): no transfer fee on larger amounts; slight spread. Competitive for AED 10,000+ transfers. Australian regulated (ASIC).
Bank wire (CommBank, Westpac, etc.): easy but expensive — typically 2–4% spread plus fixed fee. Not recommended for regular remittances.
CRS — UAE banks report to the ATO
The UAE participates in the OECD Common Reporting Standard. UAE banks identify account holders who are tax residents of participating countries (including Australia) and report account information annually to the UAE Federal Tax Authority, which shares it with the ATO. This means the ATO has visibility of your UAE accounts, balances, and interest — even if you have not disclosed them. Do not attempt to conceal UAE accounts from the ATO. Accurate, transparent ATO lodgement is the only correct path.
Wills, estate planning, and UAE assets
Australians with assets in both Australia and the UAE should address estate planning for both jurisdictions. UAE succession law and Australian succession law operate independently.
Australian will
Keep your Australian will current and specific to Australian assets (property, bank accounts, super fund nomination, ASX shares). A valid Australian will is typically recognised in the UAE courts for distribution of Australian assets. Update after any material asset change and ensure your super fund has a binding death benefit nomination (super does not automatically pass under your will — it requires a fund nomination).
DIFC will for UAE assets
For UAE assets (Dubai bank accounts, UAE property, UAE investments), Australians should consider a DIFC (Dubai International Financial Centre) will. The DIFC Wills Service Centre allows non-Muslims to register a will under English common law principles, providing certainty over distribution of UAE assets according to your wishes rather than default UAE/Sharia succession rules. Cost: approximately AED 5,000–10,000 for preparation and registration. Highly recommended if you own UAE property or hold significant UAE bank balances.
Australian testamentary trust considerations
For Australians with significant wealth, a testamentary trust (established under a will, taking effect on death) provides estate planning benefits — particularly the ability to split income to family beneficiaries at their individual marginal rates, potentially at the resident individual tax rates. Specialist estate planning advice should cover whether a testamentary trust makes sense alongside both an Australian will and a DIFC will for UAE assets.
Superannuation does not pass through your will
Super is separate from your estate. To ensure your super is distributed as you intend on death, lodge a Binding Death Benefit Nomination (BDBN) with your super fund. BDBN directs the trustee to pay your super to nominated beneficiaries (spouse, children, estate). Without a valid BDBN, the trustee has discretion — which may not align with your wishes. Review your BDBN after any life event.
Professional advice and compliance costs
Typical annual Australian tax-compliance costs and professional services (AED approximate)
Item
Price
Pre-departure
Australian expat tax consultation (pre-departure planning)
AED 1,500–4,000 (one-off)
CGT analysis on departure (shares, property, deemed disposal)
AED 2,000–6,000 (one-off)
Annual ATO lodgement
Australian tax return as non-resident (Australian-source income only)
AED 1,200–2,500/year
Add: rental property income and expenses
+AED 800–2,000/year
Worldwide income assessment for HELP debt
AED 400–800/year (or included in return)
Estate planning
DIFC will preparation and registration (UAE assets)
AED 5,000–10,000 (one-off)
Australian will update with testamentary trust
AED 3,000–8,000 (one-off)
Currency transfer
Wise (AED to AUD): per AED 10,000 transfer
AED 40–80 fee + mid-market rate
OFX (AED to AUD): no fee, slight margin on AED 10K+
~AED 100–200 in spread equivalent
Super
Super fund advice / review as non-resident
AED 800–2,000/year
Taxes for Australians in Dubai — frequently asked questions
No — Australian tax residency is not simply about physical presence. The ATO applies four tests, and you may continue to be a resident until you satisfy the domicile test by establishing a permanent place of abode in the UAE. In practice this means securing long-term UAE housing (12-month+ lease or purchase), bringing your family, and demonstrating settled UAE life. Many Australians who move to Dubai initially remain Australian residents for the first few months of their stay until these conditions are met.
The domicile test provides that a person whose domicile is in Australia is an Australian resident unless the Commissioner is satisfied they have established a permanent place of abode outside Australia. For most Australians moving to Dubai, this is the key test. To satisfy it, you need: a long-term (12-month+) lease or property ownership in UAE, your family with you (if applicable), evidence of settled life (UAE bank accounts, UAE employer, enrolled children in UAE schools), and minimal or incidental return visits to Australia. The 2019 Federal Court case Harding v Commissioner of Taxation confirmed that a permanent place of abode can be established abroad even when the taxpayer returns to Australia from time to time, provided the UAE residence is their settled base.
Test 1 — Resides test: are you ordinarily resident in Australia based on your behaviour, habits, and actual presence? This is the primary test. Test 2 — Domicile test: if your domicile is Australian, you remain a resident UNLESS you have established a permanent place of abode abroad. This is the key test for Dubai-based Australians. Test 3 — 183-day test: if you spend 183+ days in Australia in a year and your usual place of abode is not abroad, or you have no intention to reside elsewhere, you are a resident. Australians in Dubai typically avoid this by keeping their Australian visits short. Test 4 — Commonwealth superannuation test: applies only to members of the PSS (Public Sector Superannuation) or CSS (Commonwealth Superannuation Scheme) who are employed by a Commonwealth agency — they are deemed Australian residents regardless of location. Most private-sector expats are not affected.
Harding v Commissioner of Taxation [2019] FCAFC 29 is the most significant recent case on the permanent place of abode question. Mr Harding worked in Bahrain, maintained an apartment there for several years, but returned to Australia regularly and had family connections in Australia. The Full Federal Court held that he had established a permanent place of abode in Bahrain, making him non-resident for Australian tax purposes. The case confirmed that 'permanent' means indefinite or settled — not forever — and that regular Australian visits do not necessarily destroy non-residency if the overseas base is genuinely established. For Dubai expats: document your UAE housing, family life, and UAE economic connections carefully; short Australian holidays are permissible.
Non-residents are taxed by Australia only on Australian-source income. This includes: Australian rental income (all of it, taxed at marginal non-resident rates with no tax-free threshold); unfranked dividends from ASX-listed companies (withholding tax 30%, reducible to 15% under the UAE–Australia Double Tax Agreement); interest from Australian bank accounts (10% withholding tax); Australian employment income (rare if working in Australia temporarily); royalties from Australian sources. Dubai salary from a UAE employer is NOT Australian-source income and is not taxed by the ATO.
Non-residents do not get the Australian tax-free threshold. The 2025–26 non-resident tax scale: 32.5% on AUD 0–135,000; 37% on AUD 135,001–190,000; 45% on amounts over AUD 190,000. In addition, a 2% Medicare levy does NOT apply to non-residents. So effective marginal rates are 32.5%, 37%, or 45% depending on the income band — note the starting rate is 32.5% with no zero-rate band, unlike residents who pay 0% on the first AUD 18,200.
The 2017 'foreign resident CGT withholding' changes and 2019 main residence exemption (MRE) changes are critical. Since 9 May 2017 (with transitional relief until 30 June 2020), foreign residents are denied the MRE when they sell Australian property. This means if you are a non-resident at the time of sale, you cannot use the main residence exemption to shelter capital gains — even if the property was your principal place of residence for many years. Options: (1) Sell before you leave Australia while still a resident and the MRE still applies. (2) Re-establish Australian residency before sale (and meet the normal 2-of-5-year MRE requirements). (3) Accept the capital gain will be fully taxable as a non-resident.
Under Section 104-160 of the Income Tax Assessment Act 1997, when you cease being an Australian tax resident, you are deemed to have disposed of all CGT assets (except taxable Australian property, like real estate) at their market value on the date of departure — and immediately reacquired them at that same market value. This can trigger a taxable capital gain in your year of departure. Importantly, you can elect out of deemed disposal for each asset and retain Australian CGT treatment (Section 104-165 election). This election means your original cost base is preserved and Australian CGT applies on eventual sale. Seek specialist pre-departure advice to decide which treatment is better for each asset class.
Generally no — super remains preserved until you reach preservation age (age 60 for most). Moving to Dubai does not give access to super early. The Departing Australia Superannuation Payment (DASP) is only available to temporary residents (i.e., non-citizens) who have left Australia on a temporary visa. Most Australian citizens moving to Dubai do not qualify for DASP — they must wait until preservation age. You cannot continue compulsory employer super contributions while employed by a UAE (non-Australian) employer. You may be able to make voluntary non-concessional contributions from personal funds if you meet the work test or are under age 75, but this should be discussed with your super fund.
Yes. Since 1 January 2016, HELP repayments apply to overseas residents. If your worldwide income (including Dubai salary, in AUD equivalent) exceeds the repayment threshold (approximately AUD 54,435 for 2025–26), you are required to lodge a Worldwide Income Assessment with the ATO and pay compulsory HELP repayments at the standard percentage rates (1%–10% depending on income). You must also lodge an Australian tax return if you have Australian-source income. Failure to lodge results in penalties. The HELP threshold and repayment rates are updated annually — check ato.gov.au.
Australia and the UAE have a Double Taxation Agreement (DTA) in force. Key provisions: (1) Dividends: reduced withholding on Australian dividends for UAE residents — 15% for beneficially owned dividends (standard rate 30%). (2) Interest: 10% withholding on Australian interest (which matches the Australian domestic non-resident rate). (3) Royalties: 10% withholding. (4) Business profits: taxed only in the source country if no permanent establishment in the other. The DTA also facilitates the automatic exchange of financial account information (CRS) between UAE financial institutions and the ATO — so UAE banks report Australian-resident-connected accounts back to Australia annually.
Yes. The UAE participates in the OECD's Common Reporting Standard (CRS), which requires financial institutions to identify and report accounts held by tax residents of other participating countries. UAE banks will ask for your tax residency declaration and, if you are or were an Australian tax resident, report relevant account information to UAE tax authorities who share it with the ATO via the bilateral agreement. You cannot hide UAE bank balances from the ATO under CRS. This is separate from (but parallel to) FATCA, which covers US persons.
Non-residents are not subject to the Medicare levy (2% of taxable income). You cannot access Australian Medicare as a non-resident (unless reciprocal health agreement applies — UAE is not in any reciprocal agreement with Australia). This means for tax purposes, your effective rate on Australian-source income is the non-resident rate (32.5%/37%/45%) without an additional 2%. However, you will need comprehensive private health insurance in the UAE — typically AED 5,000–25,000/year depending on coverage level.
Generally yes, as non-resident accounts. Useful for: receiving Australian rental income, managing Australian obligations (HELP repayments, tax refunds/liabilities), and maintaining a financial link to Australia. Notify your bank of non-resident status — they will apply 10% withholding to interest. Most major Australian banks (CommBank, Westpac, NAB, ANZ) allow non-resident account holders. Some products (Australian government bonds, certain managed funds) may become unavailable as a non-resident. Do not try to falsely represent Australian residency to retain product access — this is fraud and visible under CRS.
As a non-resident, you can still hold ASX shares. Franked dividends: the franking credit offsets withholding tax, so if a dividend is fully franked (30% franking), no additional withholding applies. Unfranked dividends: 30% withholding, reduced to 15% under the UAE–Australia DTA if you declare UAE residency. Capital gains on ASX shares: once non-resident and after any deemed disposal election on departure, subsequent gains on foreign-acquired shares are generally not taxable in Australia (shares are not 'taxable Australian property' unless the company is a land-rich company). However, the 5-year temporary non-residency anti-avoidance rule means if you return to Australian residency within 5 years, those gains may be realised and taxed in Australia.
The AUD/AED rate fluctuates — as of April 2026, approximately AED 2.40–2.50 per AUD 1.00 (i.e., AUD 1 ≈ AED 2.45). Use Wise or Google for the live mid-market rate. For sending money from Dubai to Australia, compare Wise (typically the cheapest, 0.4–0.8% fee + mid-market rate), OFX (no transfer fee, slight rate margin), and bank wire (most expensive, typically 2–4% spread). For regular monthly AUD remittances of AED 10,000+, Wise or OFX will save thousands per year versus bank wire.
Putting it all together
For Australians in Dubai, the core tax advantage is real but requires deliberate action. The five things that determine your net outcome: (1) properly establishing non-residency under the domicile test with a documented UAE permanent place of abode; (2) handling your Australian home before departure — sell while resident to access the main residence exemption, or accept CGT exposure on future non-resident sale; (3) managing Australian-source income (rental, dividends, interest) which remains ATO-taxable regardless of UAE residency; (4) staying on top of HECS/HELP worldwide income lodgement every year; and (5) keeping super on track — consolidate before you leave, review investment options, and remember citizens cannot access DASP.
The financial advantage is substantial — a saving of AUD 18,000 to AUD 95,000+ per year depending on salary level — but realising it cleanly requires pre-departure planning and ongoing Australian compliance. This guide is general information, not tax or legal advice. Engage a registered Australian tax agent with expat experience before departing and annually for your ATO lodgements.
