Australia's temporary resident tax concessions: What newly arrived GPs should know

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Being an Australian tax resident doesn’t mean your overseas income is automatically taxable

If you've recently moved to Australia on a 482 Skills in Demand visa to work as a GP, you're probably focused on settling into a new practice, navigating our health system and building your life in Australia.

Tax is often a lower priority.

However, one of the most valuable financial opportunities available to doctors migrating to Australia arises when you first arrive. Understanding it early can potentially save you significant tax and help you make better decisions about your overseas investments, property and long-term wealth planning.

You can be an Australian tax resident and still qualify for Australia's temporary resident tax concessions.

Many newly-arrived GPs assume that becoming an Australian tax resident means Australia can immediately tax all of their worldwide income and assets. Usually, that would be true, but doctors coming here on a temporary visa can take advantage of more favourable tax concessions.

While you are in Australia on a temporary visa, certain foreign income and overseas assets may remain outside the Australian tax system. This creates a valuable tax planning opportunity.

However, once you become a permanent resident, those concessions disappear quickly. If you hold property, investments, pensions or other assets overseas, and are here on a temporary visa, this is a critical time in your migration journey.

Decisions you make now can have significant long-term consequences for your financial outcomes.

Here is what you need to know.

Australian tax residency rules

Many overseas doctors who relocate with the intention of working and living in Australia will become Australian tax residents relatively quickly, often within months of arrival.

The ATO considers several residency tests to determine if you are an Australian tax resident including:

Resides test

This test focuses on whether Australia has become your home in the ordinary sense. For example, an overseas trained GP who relocates to Western Australia, rents or purchases a home, moves their family to Australia, commences long-term employment with a medical practice and becomes involved in the local community is likely to be viewed by the ATO as residing in Australia and therefore an Australian tax resident under the resides test.

Domicile test

This test, asks a simple question: Has Australia become your permanent home? For many overseas trained doctors, obtaining long-term employment, moving their family to Australia and giving up a permanent home in your home country can be strong indicators that Australia has become their domicile for tax purposes.

183-day test

Spending more than six months in Australia can be a strong indicator of Australian tax residency but must also be considered in relation to the above two tests.

Commonwealth superannuation test

This is a specialised rule that rarely applies to overseas-trained doctors relocating to Australia.
Once you become an Australian tax resident, Australia generally has the right to tax your worldwide income.

Temporary resident status

If you hold an eligible temporary visa, such as a 482 visa, and satisfy the relevant requirements, you may qualify as a temporary resident for tax purposes.

Temporary resident concessions were introduced to make Australia a more attractive destination for skilled migrants.

The concessions can allow certain foreign income and foreign assets to remain outside the Australian tax system while temporary resident status continues.

In practical terms, this means many doctors can enjoy a period where they are living and working in Australia, paying Australian tax on their Australian income, while many forms of foreign income and gains are excluded from Australian taxation. In addition, many non-Australian assets remain outside Australia's capital gains tax (CGT) regime while temporary residency continues.

For doctors who have accumulated assets before migrating, this can be extremely valuable.

What is a temporary visa?

A temporary visa is a visa granted under the Migration Act 1958 that allows a person to live and work in Australia for a specified period but does not provide permanent residency rights. Holding a temporary visa is one of the key requirements for accessing Australia's temporary resident tax concessions.

How do you qualify as a temporary resident?

Generally, an individual may qualify as a temporary resident if:

they hold a temporary migration visa
they are not an Australian permanent resident or citizen for Social Security Act purposes
their spouse or partner is also not an Australian permanent resident or citizen.

What happens to your overseas investments?

Many GPs arrive in Australia with existing investments and wealth accumulated overseas.

These commonly include:

Rental properties
Share portfolios
ETFs
Managed funds
ISAs and other tax-advantaged overseas investment accounts
Cryptocurrency holdings
Business interests
Overseas savings and investment accounts

Without proper planning, these assets can create unexpected tax consequences later.

With the right advice, the temporary resident period can provide an opportunity to review these holdings before Australia's normal worldwide taxation rules begin to apply.

What happens when you become a permanent resident?

For most GPs who move to Australia, obtaining Australian permanent residency (PR) is a major milestone.

It is also a critical turning point for your tax treatment.

When temporary resident status ends and you remain an Australian tax resident, Australia's tax treatment of your foreign income and foreign assets changes significantly.

This is often the point where:

foreign investment income becomes taxable in Australia
overseas assets become subject to Australian capital gains tax rules
additional reporting obligations may arise
cross-border tax planning becomes more important.

An important concept to note, is that for capital gains tax purposes, the foreign assets are treated as though they were acquired at their market value when they enter the Australian CGT system (i.e. the date you gain PR). This means:

Growth that occurred before the relevant reset point may effectively be ignored for Australian CGT purposes.
Future appreciation may become subject to Australian tax.

For this reason, obtaining professional valuations before PR is granted can become extremely important, particularly for property and any business assets. We also recommend keeping records of market value at the date of PR for any share, managed funds or cryptocurrency holdings.

Recently arrived in Australia on a 482 visa?

Now is the ideal time to understand how the temporary resident rules apply to your situation. We specialise in assisting GPs and health professionals new to the country in navigating the complex Australian tax system.

Do not overlook superannuation

For many overseas doctors, Australia's superannuation system is completely unfamiliar.

Yet it is one of the most effective long-term wealth creation tools available.

As you establish your career in Australia, superannuation should form part of your broader financial strategy.

Australia's compulsory retirement savings regime may be very different from other pension systems around the world. You need to be aware of how this system works.

As of 1 July 2026, employers are generally required to contribute superannuation at 12% of an employee's eligible earnings. For most employed doctors, this is calculated on their ordinary earnings, including salary and wages, up to the applicable superannuation contribution limits.

For doctors operating as independent contractors, superannuation is generally not compulsory unless specific arrangements apply, meaning responsibility for retirement savings falls largely on the individual.

Making personal concessional superannuation contributions can be a highly effective tax planning strategy, with up to $32,500 of concessional contributions permitted during the 2026-27 financial year (subject to eligibility and contribution cap rules), allowing income to be taxed within the superannuation environment at a concessional rate of 15% rather than at potentially higher personal marginal tax rates.

The interaction between employment income, personal contributions, tax planning and long-term retirement objectives can have a significant impact on your future financial position.

For doctors intending to remain in Australia long term, getting this right early can make a substantial difference.
We recommend discussing your superannuation options with your financial planner.

Temporary residents who subsequently leave Australia permanently may be eligible to access their superannuation via a departing Australia superannuation payment (DASP), although significant tax can apply to the withdrawal.

Seek professional advice before making any withdrawal decisions, to understand the Australian and international tax implications.

For further information on maximising tax-smart super for medical professionals, please read our article: Superannuation tips for medical professionals in Australia.

Next steps for GPs

The most common mistake is assuming that tax planning can wait.

Many doctors are so focused on registration, employment, relocation and family arrangements that they don't consider the tax implications until years later.

Unfortunately, some of the most valuable planning opportunities only exist while temporary resident concessions remain available.

Once that period has passed, certain opportunities may no longer be available.

The most successful outcomes usually occur when planning begins:

before arrival in Australia

during the temporary resident phase

immediately prior to obtaining permanent residency.

For doctors relocating to Australia, engaging both an Australian adviser and an overseas adviser is often the most effective way to navigate the transition and ensure both sides of the border are managed appropriately.

A tailored review can help you understand what concessions may be available, identify future tax exposures and ensure you are making informed decisions before key migration milestones occur.

For further information on making the move to Australia as a doctor, here is another great article which highlights the pathways and eligibility for overseas GPs looking to move to Australia: Your guide to migrating to Australia as a doctor.

General information only. Tax outcomes depend on individual circumstances, visa status, residency position and asset profile. Professional advice should be obtained before implementing any strategy.