If you spend time outside Australia for work, family or personal reasons, your travel history could play an important role in your Australian tax affairs.
On 24 August 2026, the Australian Taxation Office (ATO) gazetted an updated passenger movements data-matching program. From the 2026–27 income year to 2028–29, the Department of Home Affairs is expected to provide the ATO with travel information for approximately 115,000 individuals each year.
The information may include names, dates of birth, arrival and departure dates, passport details, and citizenship or visa status. The ATO can compare these records with its own information to identify potential issues involving tax residency, registration, tax return lodgment, reporting and payment obligations.
For people who regularly travel overseas, have moved overseas or are planning to return to Australia, understanding their Australian tax residency status is particularly important.
Why Australian Tax Residency Matters
Your Australian tax residency status can significantly affect how your income and assets are taxed.
Australian tax residents are generally taxed on their worldwide income, while foreign residents are generally taxed on their Australian-sourced income. Residency can also affect eligibility for the tax-free threshold, Medicare levy obligations and capital gains tax (CGT) treatment.
If you have moved to or from Australia, or spent an extended period overseas, the dates you entered and left the country may be relevant when preparing your tax return.
With access to passenger movement records from another government agency, the ATO can compare the travel dates reported by taxpayers with independently held information. If the records do not appear to align, the ATO may seek further information to clarify the taxpayer’s circumstances.
However, spending time overseas does not automatically make you a foreign resident for tax purposes. Residency is determined by considering a range of factors, including your family circumstances, connections with Australia, intentions and behaviour. Your travel history can help establish the broader picture, but it is not the only consideration.
When Your Overseas Travel History May Matter
Accurate travel records can be particularly useful in several situations.
1. Becoming or Ceasing to Be an Australian Tax Resident
If you became or ceased to be an Australian tax resident during an income year, your arrival and departure dates may form part of the evidence supporting your residency position.
These dates may also be relevant when determining whether a part-year tax-free threshold applies. Keeping clear records can help support the information included in your tax return.
2. Working Overseas
If your job involves regular international travel or an extended period working overseas, your travel history may help establish when you were in Australia and when you were overseas.
This can be relevant when considering foreign employment income, work-related travel and other overseas activities. Your residency status and individual circumstances will help determine the appropriate tax treatment.
3. Selling an Australian Property After Moving Overseas
If you move overseas and later sell an Australian property, your tax residency history may affect the capital gains tax outcome.
Residency status can influence whether the main residence exemption is available when you sell your home. Keeping records of when you lived in Australia and when you were overseas can therefore be useful when assessing the relevant tax treatment.
How to Prepare for ATO Data Matching
There is no need to be concerned simply because you travel overseas. However, if you spend significant periods outside Australia, it is worth ensuring your travel records are accurate and consistent with your tax affairs.
A few practical steps can help:
- Record your travel dates. Keep a clear record of your arrival and departure dates for each international trip.
- Retain supporting documents. Keep flight itineraries, boarding passes and passport records where available.
- Tell your tax adviser about significant changes. Let us know if you have moved overseas, returned to Australia or spent an extended period abroad.
- Review your tax return information. Before lodging, check that the travel dates used to assess your residency position and other relevant tax matters are accurate.
Good record-keeping is particularly important when your tax residency position is not straightforward. If the information reported in your tax return differs from the records available to the ATO, supporting documents can help explain the circumstances.
A Small Detail That Could Make a Difference
For many taxpayers, the ATO’s passenger movements data-matching program may have little direct impact. However, for individuals who travel frequently, have relocated overseas or have a more complex tax residency position, accurate travel records can be valuable.
Rather than waiting for the ATO to raise a query, consider discussing your circumstances with your tax adviser if you have spent substantial time overseas or are planning an international move.
Reviewing your travel history and tax residency position early can help identify potential issues, support accurate tax reporting and give you greater confidence that your tax affairs reflect your circumstances.
If you have questions, please do not hesitate to contact our office to speak to one of our team.
