If you’re a British expat living in Australia, getting your tax affairs right in both countries can save you stress, penalties and double taxation later on.
Each tax authority expects you to declare income, file returns and claim reliefs correctly, even if you think your income is only taxable in one country.
Below is a practical checklist to help you stay compliant.
Disclaimer
The information in this checklist is provided for general guidance only and should not be relied upon as personal tax, financial or legal advice. Tax rules in both the UK and Australia change frequently, and their application depends on your individual circumstances. Always seek independent advice from a qualified tax specialist who understands both jurisdictions before making financial decisions or submitting any tax returns.
Checklist: UK–Australia tax compliance for expats
Confirm your residency in both countries
- Apply the UK Statutory Residence Test to confirm whether you’re still UK resident for tax purposes.
- Check your Australian tax residency using the ATO’s “resides”, domicile, 183-day and Commonwealth superannuation tests.
- If you qualify as resident in both, use the UK–Australia double taxation agreement (DTA) tie-breaker rules to establish primary residency.
Register with each tax authority if needed
- If you have UK income (e.g. rent, pensions, investments), register for UK Self Assessment.
- In Australia, obtain a Tax File Number (TFN) from the ATO if you haven’t already.
- If you’re a landlord, register under the Non-Resident Landlord Scheme to receive rent without basic rate tax withheld.
Understand and record key tax year dates
- UK tax year: 6 April to 5 April; Self Assessment return due by 31 January (online).
- Australian tax year: 1 July to 30 June; standard lodgement deadline 31 October, extended to mid-May if using a tax agent.
- Keep a record of where each income event falls as mismatched year-ends can affect treaty credits.
Gather essential documentation
- UK P45/P60 or pension statements.
- UK property income and expense records (in £ and AUD equivalents).
- Bank and investment statements showing interest and dividends.
- Australian income summaries and superannuation statements.
- Evidence of exchange rates used for conversions (official HMRC or ATO rates).
Report income correctly in both countries
- File a UK Self-Assessment return each year if you have UK-sourced income or gains.
- Lodge an Australian individual tax return declaring worldwide income, including UK earnings, pensions and investment income.
- Claim a foreign income tax offset in Australia for any UK tax already paid.
- Include UK ISA and bank interest on the Australian return (ISAs are not tax-free in Australia).
- Report any foreign currency gains on investments, transfers or savings.
Declare property sales and capital gains
- In the UK, submit a Property Disposal Return within 60 days of selling property, even if you’re Australian resident.
- In Australia, declare the gain using the Capital Gains Tax schedule and apply the foreign tax credit for UK CGT paid.
- Record property valuations on the date you became Australian resident as they form your new cost base for Australian CGT.
Manage pensions and superannuation
- Confirm how your UK pension payments are taxed in Australia (most are taxable only in Australia under the DTA).
- Check whether your Australian super fund is a QROPS before considering any UK pension transfer.
- Be aware of superannuation contribution caps (concessional $30,000; non-concessional $120,000 in 2024–25).
- Keep evidence of foreign transfers for DTA and ATO reporting purposes.
Check healthcare and levies
Understand whether you’re liable for the Medicare levy (usually 2% of taxable income).
If your income exceeds the surcharge threshold and you don’t hold qualifying private cover, budget for the Medicare Levy Surcharge (up to 1.5%).
Review currency exposure and timing
- Track when UK income is received vs when it’s taxed in Australia.
- Plan transactions (property sales, dividends, pension withdrawals) around both tax year-ends to optimise reliefs.
- Use a consistent, official exchange rate for conversions (or work with a forex broker)
Retain records and file on time
- Keep supporting documents for at least five years after each filing deadline in both countries.
- Store both £ and AUD versions of key figures.
Note potential penalties:
- UK: £100 fixed penalty after 31 January; daily penalties and interest thereafter.
- Australia: from $330 per 28 days late, plus interest and audit risk.
Get qualified advice before making decisions
- Before making financial decisions, sell property or move back to the UK, consult a UK and/or Australia tax specialist.
- Ensure advice covers both systems as many local accountants may not consider overseas impacts.
- Keep copies of professional tax advice for audit protection.
Why this checklist matters
Tax mistakes between the UK and Australia are common, even among experienced expats. Filing late, missing UK forms like SA109 or Property Disposal Returns or failing to report foreign income in Australia can lead to double taxation, ATO data-matching audits and interest charges.
Working through this checklist each year helps you stay compliant, avoid fines and keep both tax authorities satisfied.
If you need to help with any element, or you would rather get someone to ensure your taxes are in order, request an introduction to one of our trusted tax partners. They will offer you a free discovery call to discuss your situation before explaining how they can assist you. You won’t be under any obligation to proceed with any services, but you will get peace of mind that your taxes are in order.
