Australian Tax Question

[Macrossian]

Hi Everyone,

First I want to thank all those who have contributed to this forum and made it such a good source of information for newbies such as myself planning for the big move to Dubai. I look forward to meet everyone in future forum gatherings!

I am about to fly to Duabi from Australia in a ew weeks' time. I undertsand that I have to notify the ATO as well as financial institutions like banks,, superannuation funds, etc of my change in status to a non-resident for tax purposes.

I rang up ATO last week to find out how to go about "notifying", that is whether it involves filling up a form or writing a letter. But I was told that there is NO need for me to notify the ATO, as Australian tax lodgement is self-assessed. This has left me puzzled.

How does this "notification" process go about? For those who have gone through the process, please enlighten me

[flossie]

A quick answer as I'm meant to be somewhere else.

You don't need to notify the tax office because when you fill out your tax return, it will say on there that you have left the country. (Strongly advise you to get an accountant's help with this. One that has experience with offshore Aussies!) You have to notify banks, investment companies etc etc in writing. When your accountant (!) fills out your next tax return, he/she will notify the tax office then.

[alli]

Yeah, when you fill in your tax return it'll all be done for you.
HOWEVER.

You will be an australian residents for tax purposes this year. For tax purposes, if you spend over 6 months in Aus, you are a resident.

It is very complicated, get an accountant ASAP

[flossie]

Originally Posted by alli

Yeah, when you fill in your tax return it'll all be done for you.
HOWEVER.

You will be an australian residents for tax purposes this year. For tax purposes, if you spend over 6 months in Aus, you are a resident.

It is very complicated, get an accountant ASAP

Isn't it 6 months per financial year, though? In which case, you will be okay because financial year has just started?

[sgilli3]

Originally Posted by flossie

Isn't it 6 months per financial year, though? In which case, you will be okay because financial year has just started?

I believe it is Floss..6 months per financial year.
I have an "appointment" via the phone with our accountant tomorrow, as our tax situation has changed.
Will be asking LOTS of questions !!!
No matter how many times I read ATO website, and follow the prompts..I still cant work out our taxes properly...(lol)

[alli]

I moved here in June, and I am an australian resident for tax purposes, that's all i know.

[Osh]

Hi Macrossian

Our accountant told us that at the end of each financial year a single page form is completed and sent to the ATO advising that no tax is payable as no income was earned in Aus that year. He will do this automatically for us each year unless we notify him otherwise.

However as the others have said, anything you do earn in Aus needs to be declared.

Hope this helps.

[kaz101]

Originally Posted by alli

I moved here in June, and I am an australian resident for tax purposes, that's all i know.

Probably because that was towards the end of the tax year since the tax year in Oz runs from July 1st to June 30th so here in Oz we've just started a new tax year.

Regards,
Karen

[Macrossian]

Many thanks to everyone for the advice and information. As I understand and as some have kindly pointed out, I will lodge tax as per normal for the financial year Jul 2007- Jun 2008. But from Jul 2008 onwards (this month), I will be in Dubai and thus become non-resident for tax purposes (by doing the right things and observing the rules of course).

Speaking to an accountant is a must and I am trying to get in touch someone who knows all these international tax stuff. A friend has already introduced a potential contact but that may not be really that helpful , does anyone know of good accountants well-versed in Australian tax? Any input would be much appreciated. Cheers.

[Tiger]

Just a quick question? How do you stop Australia taxing you? I have been through the tax act and found the following. If the country you work is tax free you are not exempt from tax purposes. See 2D

Do you have anyone I can speak to about this?

Many thanks.


INCOME TAX ASSESSMENT ACT 1936 - SECT 23AG
Exemption of income earned in overseas employment
(1) Where a resident, being a natural person, has been engaged in foreign service for a continuous period of not less than 91 days, any foreign earnings derived by the person from that foreign service is exempt from tax.
(1A) A person is taken, for the purposes of subsection (1), to have been engaged in foreign service for a continuous period of 91 days if:
(a) the person died at a time when he or she was engaged in foreign service for a continuous period of less than 91 days; and
(b) he or she would have otherwise continued to be engaged in the foreign service; and
(c) his or her continuous period of engagement in the foreign service would have otherwise been a period of at least 91 days.
(2) An amount of foreign earnings derived in a foreign country is not exempt from tax under this section if the amount is exempt from income tax in the foreign country only because of any of the following:
(a) a law of the foreign country giving effect to a double tax agreement;
(b) a double tax agreement;
(c) provisions of a law of the foreign country under which income covered by any of the following categories is generally exempt from income tax:
(i) income derived in the capacity of an employee;
(ii) income from personal services;
(iii) similar income;
(d) the law of the foreign country does not provide for the imposition of income tax on one or more of the categories of income mentioned in paragraph (c);
(e) a law of the foreign country corresponding to the International Organisations (Privileges and Immunities) Act 1963 or to the regulations under that Act;
(f) an international agreement to which Australia is a party and that deals with:
(i) diplomatic or consular privileges and immunities; or
(ii) privileges and immunities in relation to persons connected with international organisations;
(g) a law of the foreign country giving effect to an agreement covered by paragraph (f).
(2A) Subsection (2) does not apply in relation to foreign earnings to the extent that the person derived them from foreign service in Iraq after 31 December 2002 but before 1 May 2004.
(3) If the income of a taxpayer of a year of income consists of an amount that is exempt from tax under this section (in this section called the exempt amount ) and other income, the amount of tax (if any) payable in respect of the other income is calculated using the formula: