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Australia–India Tax, FEMA & Financial Advisory for NRIs & OCIs.
In short
Indian-origin Australian PRs and citizens are NRIs for Indian tax until India presence reaches 182 days in the financial year, or 60 days plus 365 days over the previous four years (the 60-day limb is extended for some visiting citizens and OCIs). Superannuation is taxed in India on a residence basis once you return, with India-Australia DTAA credit for Australian tax. ATO temporary-resident rules and Indian RNOR overlap for one or two financial years and need sequenced planning before the move.
Last reviewed: June 2026 · Updated for AY 2026-27
Moving back to India from Australia: the five steps, in order.
- 01
Fix your Indian residential status
Section 6 day-counts decide when you become resident. Most returning NRIs qualify as RNOR first, which keeps foreign-source income (other than business controlled from India) out of Indian tax. Check your likely window with the RNOR calculator before booking flights.
- 02
Sequence super and Australian assets
Superannuation is taxed in India on a residence basis once you return, with India-Australia DTAA credit for Australian tax. Australia's 50% CGT discount applies to Australian residents, so disposals are timed against your departure date and the RNOR window.
- 03
File the ATO departure return
Lodge your final Australian return for the year you leave, and keep the documents that fix your departure date and asset values for Indian cost-basis purposes.
- 04
Redesignate NRE/FCNR accounts (FEMA)
Within 30 days of returning, NRE and FCNR accounts should be redesignated to resident or RFC accounts and banks and brokers notified of your changed status.
- 05
Claim DTAA credit and disclose foreign assets
File Form 44 (earlier Form 67) before your Indian return to claim credit for Australian tax, and start the Schedule FA workpaper covering super and Australian holdings once you are resident.
Check your window with the RNOR calculator or read RNOR status explained.
What do Australia NRIs ask first?
The same four pillars (tax, FEMA, property, return) apply everywhere — but the order changes by corridor. Here's where Australia cases usually start.
- 01Australian Super withdrawal and India tax
- 02CGT discount and deemed disposal
- 03ATO departure return
- 04India-Australia DTAA
- 05Franking credits and Indian dividend income
How do we help Australia NRIs?
Book a focused advisory call tailored to your corridor.
- 01Australia-India return planning call
- 02Super withdrawal sequencing review
- 03ATO departure & dual-residency review
Deep reads for Australia NRIs.
Step-by-step explainers for the Australia corridor.
- 01Return to India from Australia checklist
- 02Return to India planning and RNOR
- 03Residential status under Section 6 (NRI, RNOR, resident)
- 04DTAA relief for NRIs — Form 44 (earlier Form 67), TRC, tax credit
- 05NRE/NRO/FCNR setup
- 06Selling Indian property as an NRI
- 07TDS Section 395 (earlier section 197) route
- 08OCI & FEMA basics
What changes when you return to India from Australia?
What makes a permanent return from Australia different, from more than 250 NRI Come Back Plans prepared by Regi Tom Antony & Associates in the last ten years. Regi returned to India himself after around 20 years abroad.
- 01Superannuation: citizens and PRs generally cannot withdraw super until preservation age, so it stays abroad and needs a long-term plan; temporary residents may be able to claim a departing payment.
- 02Ceasing Australian residence can trigger a deemed capital gains event on some assets, with an option to defer.
- 03Super and other foreign assets go into Schedule FA once you are Resident and Ordinarily Resident in India.
| Status | Indian-source income | Foreign-source income | Schedule FA (foreign assets) |
|---|---|---|---|
| Non-resident (NR) | Taxed | Not taxed if earned and received outside India | No |
| Resident but Not Ordinarily Resident (RNOR) | Taxed | Taxed only if received in India, or derived from a business controlled in, or a profession set up in, India | No |
| Resident and Ordinarily Resident (ROR) | Taxed | Taxed on worldwide income, with DTAA relief for foreign tax paid | Yes |
Keep exploring.
Step-by-step ITR filing: forms, residential status, Schedule FA and refunds.
The day-count tests that decide whether you are NRI, RNOR or resident.
RNOR sequencing and a personal move-back roadmap.
Browse every NRI tax, FEMA and return guide.
Got a question specific to Australia?
Mention the country and life stage — we'll send back a corridor-specific reply.
CGT event I2 when you leave Australia
If you stop being an Australian tax resident, Australia treats assets that are not taxable Australian property — such as listed shares — as sold at market value on departure (CGT event I2). You can elect to defer this, but the assets then stay inside the Australian CGT net until actually sold. Australian real property stays taxable in Australia whatever your residency.
The 50% discount and foreign residents
The 50% CGT discount is available to Australian residents on assets held for at least 12 months. For periods after 8 May 2012 during which you are a foreign resident, the discount is not available. Selling discount-eligible assets before departure — and before you are ordinarily resident in India — usually keeps more of the gain.
Superannuation access
Australian citizens and permanent residents cannot cash out super simply because they leave; benefits are generally preserved until preservation age and a condition of release. The departing Australia superannuation payment is only for former temporary visa holders. In India, super withdrawals are taxed on a residence basis once you are ordinarily resident, so the timing of any lump sum against your RNOR years matters, as does a foreign tax credit claim through Form 44 (earlier Form 67).
Answered, candidly.
- Can I leave my super in Australia after I move back?
- Yes — but growth and withdrawals carry Indian tax consequences once you're resident. RNOR-year preservation-age withdrawals are often the cleanest path.
- How does the CGT discount survive an India move?
- Australia's 50% CGT discount applies to Australian residents. Once you become a non-resident the discount is restricted, and deemed disposal of non-TAP assets can crystallise gains on departure. We model the timing alongside Indian RNOR.
- How long does an NRI returning from Australia stay RNOR?
- Typically two financial years, sometimes three, depending on how many of the previous ten years you were non-resident and your days in India over the previous seven. The RNOR calculator gives a first estimate; we confirm it from your travel history.
- What FEMA steps apply when I return from Australia?
- Within 30 days of returning, redesignate NRE and FCNR accounts to resident or RFC accounts and tell your Indian banks and brokers. Australian bank accounts and super can be held as a returning resident, but they must be disclosed in Schedule FA.
- Is Australian super taxable in India after I return?
- Once you are an Indian resident, super is taxed in India on a residence basis, with India-Australia DTAA credit for any Australian tax. Withdrawals timed inside the RNOR window are often the cleanest path, which is why the sequence is planned before the move.
- Do Indian dividends generate franking credit issues?
- Australia does not extend franking to Indian dividends — they're foreign income, taxable in Australia with DTAA credit for any Indian withholding. After you return to India, the flow reverses.
The frameworks on this page are drawn from NRI Tax Blueprint 2025 — written by Regi Tom Antony, FCA, the practicing CA who advises on the same problems every week.
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Regi Tom Antony, FCA — a practicing Chartered Accountant who advises NRIs, OCIs and returning founders on the same questions every week. Every page here is drawn from the book and live engagements, not stock copy.
Reviewed by Regi Tom Antony, FCA, who returned to India himself after around 20 years abroad and leads the NRI Come Back Plan at Regi Tom Antony & Associates: 250+ Come Back Plans in the last 10 years, covering RNOR timing, foreign pensions, Schedule FA, estate tax, FEMA, wills and family transition coaching.
- RTA & Associates· Chartered Accountants
- NRI Tax Blueprint· Authored playbooks
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