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Taxation in Australia

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jem

Taxation in Australia

Post by jem » Sun, 29 May 2005 9:52 am

I may be working to Singapore with my work. Does anyone have any idea how investment earning in Australia and negative gearing will work? Is the income taxed in Singapore? or in Australia? Any ideas or websites would be welcomed.

splat

Post by splat » Sun, 29 May 2005 11:34 am

if you are an Aust Citizen then you will have to work in Singapore for more than 3 months not to be taxed in Australia for your earnings in Singapore.

Kellyb
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Post by Kellyb » Mon, 30 May 2005 10:56 am

taxation is rather confusing for an expat. We spoke ot countless accountants and lawlers before we arrived in Sing, all with different answers.

From what i understand, any investments that you have in Aust you will have to pay tax on (in Aust). Any expenses (negative gearing) will accumulate and you can 'cash them in' when you move back to Aust. So if you have an investment property any expenses/deductions will accumulate over the years and you can take it off your income when you move back to Aust.

Don't take that as gossple, though, that is how i understand it. Best off talking to an Aust accountant

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Bafana
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Re: Taxation in Australia

Post by Bafana » Mon, 30 May 2005 12:58 pm

jem wrote:I may be working to Singapore with my work. Does anyone have any idea how investment earning in Australia and negative gearing will work? Is the income taxed in Singapore? or in Australia? Any ideas or websites would be welcomed.
Nto sure on negative gearing.

I only pay tax on what I earn in Singapore in Singapore.

My investments in Australia including rental are also taxed by the Australian Government starting at a higher rate since you are not permmenatkly in Australi. Thats what my tax guy syas anyway (Maybe he just makans my extra tax money lah :wink: )

Seriously though get on top of it as there is nothing worse the getting a tax bill for three years worth including interest on the years that you did'nt pay (like I did).

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Pinky
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Re: Taxation in Australia

Post by Pinky » Mon, 30 May 2005 2:22 pm

Bafana wrote:
jem wrote:I may be working to Singapore with my work. Does anyone have any idea how investment earning in Australia and negative gearing will work? Is the income taxed in Singapore? or in Australia? Any ideas or websites would be welcomed.
Nto sure on negative gearing.

I only pay tax on what I earn in Singapore in Singapore.

My investments in Australia including rental are also taxed by the Australian Government starting at a higher rate since you are not permmenatkly in Australi. Thats what my tax guy syas anyway (Maybe he just makans my extra tax money lah :wink: )

Seriously though get on top of it as there is nothing worse the getting a tax bill for three years worth including interest on the years that you did'nt pay (like I did).
Your accountant is right.. Being away from Australia, you pay tax (on rental income and other earnings) based on a non-resident rate. You won't get taxed on income earned in Singapore as there are "Double-Taxation" agreements between the two countries..

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cyber_m0nkey
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Post by cyber_m0nkey » Tue, 31 May 2005 12:03 pm

Assuming you qualify a) as a resident for tax purposes in Singapore and b) you are no longer considered a resident for tax purposes in Australia (N.B. The two are not the same), then there are many tax benefits on the Australian side.

All income earned in Australia is subject to Australian tax (the exception is if you return, for a limited period, to Australia for work purposes - be careful, spend too long and any income earned while in Australia is subjet to Australian tax). Negative gearing can accumulate for a period of 6 years. Any income from shares you purchase/own before departing will be subject to australian tax, except on franked dividends - which is the extent of your tax exposure. Any NEW shares you buy/sell after leaving are capital gains free. Any money deposited in an Austrlian bank (and the bank appropriately notified) are taxed at a 'witholding' rate, i.e. 10%.

this is my understanding of what was explained to me by one of the big four (or is five) accounting/consulting firms recently.

Best advice is to get professional advice.

Redskyfire

Good Australian/Singapore Accountant

Post by Redskyfire » Mon, 06 Jun 2005 1:31 pm

Hi,

I'm having a heck of a time trying to work out my residency, as I relocated to Singapore in October last year (from Australia), spending 5 months since in New Zealand, earning Australian dollars. So as far as I can ascertain, I am a non-resident for Austrlian tax, non-resident for NZ tax (as less than 183 days) but not earning any income in Singapore yet, so where am i a resident?

I guess what I'm getting to is, can somebody recommend a good Singaporean accountant who is also very familiar with Australian (plus preferably New Zeland) regulations?

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