Thomas is a New Zealand resident who provided some accounting services to an Australian employer for 12 weeks in September 2019. For the rest of 2019/20 Thomas worked for various New Zealand employers. Does Thomas have any Australian tax liability?
A) Yes for the 12 weeks of employment services provided in Australia as the source of that employment income is Australia
B) No, as he is a New Zealand resident and so Australia has no taxing rights against him
C) Yes, on income derived for the whole of 2019/20 from both Australian and New Zealand sources
D) No, as the source of his Australian employment income was New Zealand as that is where he signed the contract to undertake that work

Question

Quizplus · Accepted Answer

Australia taxes income based on both residency and source. Since Thomas provided services to an Australian employer, the income from those services is considered Australian-sourced income, and thus, he would have a tax liability in Australia for the income earned during those 12 weeks, regardless of his residency status.

Thomas Is a New Zealand Resident Who Provided Some Accounting