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Discussion Starter · #1 ·
I am currently living in the US but moving to the Melbourne area on July 22nd.

I am what they call an Independent Contractor here in the states working for one company from home doing invoicing, expense reports, and a bunch of other operational/accounting stuff.

My client is aware of my situation and is willing to keep me on after I move since everything I do is online and I dont keep regular hours so nothing really would interfere.

Their only concern is not having to deal with any tax issues in Australia and wanted me to do some checking.

Since I am not an employee and my wages would be deposited into my Paypal account which would be linked to both my US and Australian bank accounts so I dont think it would affect them in any way but if anyone has any experience with this I could use some help.

From my point of view does anyone know if I would file taxes in Australia or the US or both?
 

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You will be earning income in Australia regardless of where the income comes from (example US). Your US "contact" might want to treat you as overseas supplier for tax perpuses, i.e. they will be basically importing services (close to overseas call centre situation). You will have to pay Australian Tax and can apply relevant Australian deductions on this income.

However as you are retaining US citizenship you'll still need to declare that in your annual return, how much US tax you are going to pay? I have no clue. As far as I understand any Aus tax paid is deductable from US tax return. However would be better to ask professionals in this regard. Some of tax accountants in Australia can help with US tax as well.
 

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Discussion Starter · #3 ·
You will be earning income in Australia regardless of where the income comes from (example US). Your US "contact" might want to treat you as overseas supplier for tax perpuses, i.e. they will be basically importing services (close to overseas call centre situation). You will have to pay Australian Tax and can apply relevant Australian deductions on this income.

However as you are retaining US citizenship you'll still need to declare that in your annual return, how much US tax you are going to pay? I have no clue. As far as I understand any Aus tax paid is deductable from US tax return. However would be better to ask professionals in this regard. Some of tax accountants in Australia can help with US tax as well.
Thanks for your help.....I believe the US has an exemption for income while living in another country that is plenty high enough for what I will be doing at this stage so while I think I have to file in the US each year it will be exempt as long as I stay under the limit.
 
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