Leaving Australia? See How Much You'd Keep
Australians on $200k+ hand nearly half to the ATO. Compare your take-home pay across 12 low-tax destinations and see what you could save each year.
Annual Savings by Destination
Estimated additional take-home pay compared to staying in Australia, based on $200,000 AUD annual income.
| Destination | Est. Annual Savings |
|---|---|
| 🇬🇪Georgia | +$93,000 |
| 🇲🇾Malaysia | +$90,000 |
| 🇻🇺Vanuatu | +$90,000 |
| 🇵🇦Panama | +$85,000 |
| 🇦🇪UAE | +$78,000 |
| 🇧🇸Bahamas | +$72,000 |
| 🇹🇨Turks & Caicos | +$72,000 |
| 🇰🇾Cayman Islands | +$68,000 |
| 🇹🇭Thailand | +$60,000 |
| 🇵🇹Portugal | +$51,000 |
| 🇸🇬Singapore | +$49,000 |
| 🇲🇨Monaco | +$47,000 |
Calculate Your Exact Savings
Enter your income and see a side-by-side breakdown for every destination in under 30 seconds.
Open the Calculator →How Australian Tax Residency Works
The ATO determines tax residency using four tests under Section 6(1) of the Income Tax Assessment Act 1936. You must fail all four tests to be classified as a non-resident: the Resides Test, the Domicile Test, the 183-Day Test, and the Commonwealth Superannuation Test.
In practice, the most important steps are establishing a permanent home overseas, terminating your Australian lease, closing local memberships, and minimising return visits. The ATO looks at the totality of your circumstances, so there is no single action that guarantees non-resident status.
Australia's Departure Tax
Under Section 104-160 of the ITAA 1997, when you cease being an Australian tax resident, the ATO deems you to have disposed of most capital gains assets at market value. This triggers a CGT event on unrealised gains across shares, crypto, investment properties, and other CGT assets.
You have two options: pay the CGT liability at departure, or elect to defer the tax until you actually sell the assets. Deferral means the ATO retains a claim over those assets, and you will need to lodge an Australian return when you eventually dispose of them.
Why High Earners Are Leaving Australia
Australia's top marginal rate of 45% kicks in at $190,000, with an additional 2% Medicare Levy bringing the effective top rate to 47%. Capital gains are taxed at your marginal rate with a 50% discount for assets held over 12 months. For high earners in tech, finance, or professional services, the combined tax burden often exceeds $100,000 per year.
Meanwhile, dozens of jurisdictions offer significantly lower or zero income tax rates with established visa pathways for remote workers and entrepreneurs. The rise of remote work has made international relocation more practical than ever.
Frequently Asked Questions
How do I stop being an Australian tax resident?
You must fail all four ATO residency tests by establishing a permanent home overseas, severing domestic ties (leases, memberships, bank accounts), and limiting return visits. The ATO assesses the totality of your circumstances, so professional advice is recommended.
What is Australia's departure tax?
It is a deemed disposal of your CGT assets at market value when you cease residency. You can pay at departure or elect to defer. The rules are set out in Section 104-160 of the ITAA 1997.
Will I still pay Australian tax if I live overseas?
As a confirmed non-resident, you only pay Australian tax on Australian-sourced income such as rental income from Australian property or dividends from Australian companies. Foreign-sourced income is not taxed.
Which countries save Australians the most tax?
Zero-tax jurisdictions like the UAE, Bahamas, Cayman Islands, and Vanuatu offer the largest absolute savings. Territorial-tax countries such as Malaysia, Panama, and Georgia can also reduce your effective rate to near zero on foreign-sourced income.