Ok this is my situation, which I will try and simplify and hope someone can give me some advice. I was living and working in the UK for 16 months starting April 07 (worked from June 07 to April 08). I am now back living on Australia and plan to stay. Whilst away I rented out 3 Australian properties – one is fully paid off which I received about 20k in income and had about 3K in deductions. (Taxable income say $17k) The second property I received about 15k income and had about 17k Deductions. Negative return of $2k The third property is in a trust, which I own all 360000 $1 units which I borrowed for. From this property I earned 15K in income and deductions including interest on the units in the trust were 33k effectively this was a negative return of 18K. In the UK I earned the equivalent of A$75000 and paid the equivilant of A$13,600 in tax. If I had earned this amount in Australia I would have paid $18,000 in tax hence there is a shortfall of 4K (well if National Insurance payments were taken into account from the UK there would not be a shortfall). So I will have pay some tax on this income if I say I am a resident. I also received whilst I was overseas a bonus payment that was payable to me going back to 2006 when I was living in Aust – no tax was withheld from this payment (about 6k). Whilst overseas I sold some shares, which I have held for years and have a capital gain of 3K. Whilst overseas I earned about 12K (input credit of about 5K) dividends from my shares held in Oz and also paid $5500 interest on my margin loan. All of my dividend statements say I am a “non resident” but it does not appear that I was taxed at a lower rate – I have read links that said I should have been taxed at 15% company rate not 30%. Is that correct? I had about 400k of shares when I left but now that is down to about $140k (mostly through drop in values and a few other sales where I broke even). It looks to me that I can choose to be a resident or non-resident for tax purposes the question is which way should I go? Any help would be very much appreciated.