Whether you are leaving Australia permanently or entering Australia as a foreign resident it is essential that you do not unknowingly expose yourself to unexpected taxation because of the complex rules regarding taxation residency. If you ordinarily reside in a foreign country but visit Australia with the intention of only being here temporarily you will pay the foreign tax rates on any income you earn in Australia (30% – 45%) but may also be exposed to taxation liability on your worldwide income if the ATO considers you a resident ‘for tax purposes’. Similarly, you may leave Australia permanently but find that the ATO still seeks to impose taxation on your overseas earnings even if you don’t live in Australia any longer. A structured and considered plan needs to be in place to ensure that you are not caught by the residency rules.