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Taxation Issues for Australian Expats

Posted: Thu, 07 Jun 2018 12:47 pm
by cutehobbes
This is a question for Australian expats, if any on this forum.

I am an Australian citizen looking at moving to Singapore for 3-4 years. I am a bit concerned about the tax offset available for foreign employment income in Australia. According to the ATO, the Singapore employment income should be exempt as it falls under the tax offset. But according to another tax consultant website said that Australians will only get tax offset for the % tax they pay in Singapore.

Now Singapore tax is low about 7% say for example and Australia's tax for that same income is about 30%. So the tax consultant says we have to pay the difference.

I am confused as to which is correct ? Any users here have experience paying taxes in Australia from their Singapore income ?

Any help appreciated.

Thanks
Cutey

Re: Taxation Issues for Australian Expats

Posted: Thu, 07 Jun 2018 8:27 pm
by PNGMK
The best option is to become non resident for tax purposes in Australia. In this case you only pay tax to the ATO on your Australian sourced income (investments, rental etc) at the TOP MARGINAL RATE. Don't fall for the dual taxation treaty crap... it's easier to be non resident.

To become none tax resident is not too difficult. Sell your residence (or rent it out - but at full commercial rates) and cancel most of your services in Australia (electricity etc). You can then (if you chose - not everyone does) to inform the ATO you are leaving Australia for overseas and will not be tax resident and if you have no significant income you don't need to file income tax forms to the ATO. A lot of expat Australians' actually just leave and don't file taxes (if they have no Australian income) but that can cause headaches on return as the ATO wants to know why you haven't files income taxes for the last X years (and yes, being an expat is a valid reason but the ATO are bastards).

Re: Taxation Issues for Australian Expats

Posted: Fri, 04 Jan 2019 12:05 pm
by yschong81
From ATO website -

If you remain an Australian resident overseas:
You must lodge an Australian tax return and declare all your foreign employment income, including any exempt income.

https://www.ato.gov.au/Individuals/Inte ... -overseas/

Are you a resident for tax purposes?
If you: leave Australia temporarily and do not set up a permanent home in another country
you are generally:an Australian resident for tax purposes

do not set up a permanent home <--- Debatable what is permanent home?

https://www.ato.gov.au/individuals/inte ... ax-return/

Re: Taxation Issues for Australian Expats

Posted: Fri, 04 Jan 2019 12:20 pm
by PNGMK
Just don't own or rent a house that is a residence in Australia.