When you move from Canada to Australia, your tax situation changes more than most people expect. The key thing to understand is that both countries can potentially look at the same income  and the Canada–Australia tax treaty exists mainly to make sure you’re not taxed twice on the same money. In simple words, though, it doesn’t mean “no tax twice anywhere.” It means one country gets the main right to tax an income, and the other country gives you a credit for tax already paid.

One of the most important concepts is tax residency.If you move to Australia intending to live there long-term, set up a home, and your daily life is based there, you will generally become an Australian tax resident from the day you arrive.

This is important because Australian tax residents are taxed on their worldwide income. That means your Canadian income sources don’t disappear for tax purposes. Things like RRSP withdrawals, investment income, rental income, and pensions must still be reported in Australia once you are a resident.Non-residents, on the other hand, are taxed only on Australian-sourced income and do not receive the tax-free threshold.

Your Tax File Number (TFN) is the Australian equivalent of Canada’s SIN. You should apply for it online through the ATO website (ato.gov.au) as soon as you arrive. Without a TFN, employers apply the highest withholding tax rate (up to 47%), which can significantly reduce your take-home pay until you sort it out.

Australia uses a progressive tax system:

On top of this, there is a 2% Medicare Levy, which helps fund Australia’s public healthcare system. So in practice, most workers pay their income tax rate plus 2% extra.

This is where Canadian expats often get surprised. An RRSP is still recognised under the Canada–Australia tax treaty. You don’t lose it when you move. However, when you withdraw money, it is taxed in both countries in different ways:

• Canada applies withholding tax on withdrawals
• Australia also includes RRSP withdrawals as taxable income
• You then receive a foreign tax credit in Australia for tax already paid in Canada

The result is not double taxation, but timing and structure of withdrawals matter. Smaller, planned withdrawals are often more tax-efficient than large lump sums.

A TFSA, however, is treated very differently. While Canada continues to see it as tax-free, Australia does not recognise that status. The Australian Tax Office treats your TFSA like a normal investment account. That means:

• Interest and dividends inside the TFSA are taxable in Australia
• Capital gains may also be taxable when realised
• There is no tax credit, since Canada does not tax TFSA income

So even though the TFSA remains useful, it loses its tax-free advantage once you become an Australian tax resident.

Canadian retirement benefits like CPP and OAS are treated under the tax treaty as social security income. Canada withholds tax at source (often around 15% for monthly payments for non-residents). When you declare this income in Australia, it is included in your taxable income.

However, you receive a foreign income tax offset in Australia for the Canadian tax already withheld. This helps prevent double taxation. In most cases, CPP and OAS are only lightly impacted by extra Australian tax, depending on your overall income level.

Australia runs on a different tax calendar than Canada.

• Tax year: 1 July to 30 June
• Tax returns due: 31 October (or later via tax agent)

Many people use a registered tax agent because it is affordable (often AUD 100–200) and the fee is usually tax-deductible. You can also file directly using the ATO’s online system.

Australia allows deductions for a wide range of work-related and investment expenses, including:

• Work tools, uniforms, and job-related expenses
• Home office costs
• Self-education related to your current job
• Investment property expenses (interest, repairs, rates)
• Income protection insurance
• Charitable donations

These deductions can significantly reduce taxable income if used correctly. Once you become an Australian tax resident, your Canadian financial life doesn’t disappear, it just becomes part of your global tax picture.

The biggest things to understand early are:

• You are taxed on worldwide income in Australia
• RRSPs remain tax-deferred but are taxed on withdrawal
• TFSAs lose their tax-free status in Australia
• CPP and OAS are taxed with credits to reduce double taxation
• Getting your TFN and residency status right early saves real money