Australia NRIs: What the India-Side 2024-26 Changes Mean for You

The Australia-India Economic Cooperation and Trade Agreement (ECTA), in force from December 2022, included a side letter on taxation of technical services. Fully operative during 2024-26. The impact: Australia no longer imposes withholding on payments to Indian residents for certain technical services provided remotely under Article 12(3)(g) of the DTAA.

Practical effect: Indian consultants in Australia billing Indian clients, or Indian IT firms servicing Australian customers remotely, no longer lose 10% to Australian royalty withholding on qualifying technical services. A real operational saving for the Indian tech community in Sydney, Melbourne, and Brisbane.

The core India-Australia treaty rates (15% interest, 15% dividends) are unchanged.

**Section 148 reopening window** cut to 3 years 3 months / 5 years 3 months from the older 10-year cap, effective 1 September 2024.

**Faceless mandate** for Section 148 notices enforced by Telangana HC and Supreme Court (2024-25). JAO-issued notices are void. Check yours.

**Budget 2024** 12.5% flat LTCG on NRI property sales, no indexation, from 23 July 2024. The resident-only 20%-with-indexation carve-out added by Finance (No.2) Act 2024 does not apply to NRIs. Australian dollar exchange rate matters on both sides of the ledger, the ATO uses AUD-converted values.

**Black Money Act** small-asset safe harbour ₹5L → ₹20L from 1 October 2024 (Finance (No. 2) Act 2024 amendment).

If you have an open Section 148 matter, verify it was NFAC-issued. If you're selling Indian property, apply for Form 13 Section 197 in advance.

Australian tax residency and Indian tax residency can both trigger in the same year if you split time between the two. The DTAA tie-breaker rules (Article 4) determine which country gets primary taxing rights, usually based on permanent home, centre of vital interests, habitual abode, and finally nationality.

If you're transitioning between Australia and India, get this mapped out before the transition rather than after. Our team handles the Indian side of the planning.