KhunHeineken

As I have posted before, under the old criteria, you could have said you have an intention to return, you may have still had a car, you may have a place to stay, you may still have a sim card, you have a bank account, and so on. These could prove some intention, although after 12 years in your case, I doubt it. All of this would be looked at. That takes manpower and time, which may have not resulted in a financial outcome for them, so they didn't bother. Fast forward to 2022 and the new 183 day law, and your residency for tax purposes is generated by computer data bases. No manpower involved, and very timely. It does away with your possible intentions, and doesn't care if you have a house to come back to, a car, a sim card, a bank account, and so on. It only focuses on you were outside of Australia for more than 183 day. Pretty much end of story. This is enough for them to contact you and tell you that you haven't paid the appropriate tax and here your bill for what you have to pay as a non resident. There's nothing an individual can do about it, because it can't be refuted. How would one ask for a review, or appeal it, they can't. As for your circumstances, it remains to be seen how they will deal with government pensions, but I think the earnings of your super will be up for grabs.

It's my understanding that the ATO has instructed the banks to ask everyone with an account that earns interest to declare their residency for tax purposes. This information is then sent to the ATO to be cross referenced, which is going to be a hell of a lot easier after the 183 day rule comes in. The ATO will then instruct the banks to tax the interest at non resident rates of account holders outside of Australia for more than 183 day, and forward it to them. Given it's low interest rates at the moment, many expats won't care, but they then have you on the non resident Merry Go Round which will spread to other income you have.

How does the ATO contact someone like yourself to inform you it's happening?

The bank forwards the information you supplied to the ATO. The ATO cross references it with data bases, including immigration. Up comes a red flag.

No, they are the officers that may / will be taking around 30% of what you currently transfer to Thailand, from dollar number one.

Here's one of the best articles I have found on it. https://taxbanter.com.au/banter-blog/tax-residency-rules-to-change-behind-the-federal-budget-proposals/ Some quotes: "One of the key tax measures is a long-anticipated proposal to change the tax residency tests for individuals to better reflect the modern world. This article outlines the Board of Taxation recommendations which underpin the Budget measure and sets out the model on which the new rules will likely be based." "The Board has developed proposed rules to re-focus tax residency in three critical ways: making physical presence the primary measure of residency — moving Australia to closer alignment with international practice; focusing on Australian connections — providing that two individuals with identical physical presence and other connections to Australia should be treated the same; adopting only objective criteria — removing any requirement to test intention or undertake broad, holistic examinations to promote simplicity, consistency and certainty. The proposed model is intended to: lead to more certain outcomes; maintain existing outcomes (in a streamlined and simplified way) where appropriate in order to minimise disruption and revenue implications." There's some great charts in the article that explain the differences very well, and a good flow chart you can do to see if you are a resident or non resident. As the proposals were tied to the budget, I would say the changes are a certainty, even with a change of government.

They have to find you first. ????

Ok, but that has nothing to do with residency for taxation purposes. We'll have to wait and see what they do with government pensions, but I would think your super pension would attract non resident taxation.

I don't think it's an "if" I think it's a "when." I doubt they would grandfather anything, it would cause quite a few early retirements so people could join the scheme.

giddyup

The member is definitely a non resident for tax purposes. He doesn't meet any of the old criteria to be a resident, and certainly non of the new rules coming in. In his favor, he also has nothing in Australia to tax, and that's a good thing. If he's on a pension, we'll have to wait and see how they deal with pensions when the new laws come in.

I think many are in for a harsh lesson about the difference in the near future.

I got that from my bank a while ago as well. I also ticked resident, despite spending most of the year outside Australia. However, I do maintain a domicile, vehicle, bank account, sim card, license, utility bill, insurances, and so on, and submit a tax return every year. This possibly did meet the criteria of being a resident, because maintaining these things showed an intention to return to Australia. People doing the same as me have flown under the radar in the past. The ATO hasn't bothered with the small fish like me because they would have to look at each case individually, and each person's different circumstances, and look at all the associated documents submitted. Fast forward to 2022, and the 183 day rule relieves the ATO of looking at individuals, and their personal circumstances, and all the case investigation and documents submitted. You were outside of Australia for 183 days, that's all they need to know, their proof comes from immigration, and we can't fight it. No case by case basis anymore, no individual circumstances to be investigated, no documents to be sifted through. It throws a big net over all Aussies outside of Australia for 183 days. That's everyone from Paul Hogan, to the backpacker who has just finished school who is going away for a year. The 183 day rule is perfect for the ATO because it uses time, and geographic location, both of which can not be refuted by Aussies abroad, leaving nothing to review, or appeal. I can see why they are bringing it in. It will scoop up a lot of people, and net them a lot of money. Will just have to wait and see if the pension is deemed as "income" and is taxed at non resident rates, or, may possibly be given an exemption. You've basically made a false declaration. I doubt there will be any repercussions, but it is an offence.

If you are on a pension, why do you even need a Financial Company, and what taxes do you pay? I never suggested you were doing anything illegal. Nothing stays the same forever. After 20 years, you can expect some changes, and they very well may be coming soon. There's not much your Financial Company can do if they decide to tax pensions going to non residents. Like I said, you will still get a pension. No one is suggesting your pension will stop. They may just take some out because you are a non resident. Then again, they may do nothing, but for sure your name is going to be in the data base for non resident pensioners when the 183 day rule starts.

Where's your company on this chart? https://www.superguide.com.au/comparing-super-funds/best-performing-super-funds

You are definitely a non resident for taxation purposes. ???? No one suggested your pension would stop, it may just be for a lesser amount.

There will probably be a big spike in marriages, many of then may be fake.

Yes, my opinion, or hypothesis. They know there are thousands of expats living overseas, but generating an income in Australia. They want their non resident tax cut out of it. They must have an enforcement plan in mind, given they know these people are already outside of Australia.

Yes, and like I just posted, your name only has to be spat out of a data base, triggering a standard "please explain" letter about why you are out of Australia for more than 183 days, and you are on the ATO Merry Go Round, and around and around you will go.

I somehow don't think past failures will stop them trying it on. Then, you have the stress of dealing with your accountant, gathering documents, filling out Stat Dec's and so on. In the end, they might say you are resident and will be taxed accordingly, but it's sure to cause some sleepless nights.

It would appear the million dollar question is, if someone is inside Australia for more than 45 days, but outside Australia for more than 183 days, are they a resident or non resident for tax purposes?

You are correct, and I have posted before that the only way to get out from under the ATO is to have no assets in Australia for them to tax. I know guys that have sold up and moved all their money to a bank in Singapore. All they have left in Australia is a passport, sim card, license, and a bank account with $10 in it. The ATO has nothing to chase, and nothing to freeze. It is a bit extreme, but in many ways I envy them, and may have to do the same myself in the future. It sure would be nice to do it and not have to worry about this rubbish ever again. However, this isn't the type of expat I was talking about. I'm talking about an expat that may have a rental property, some shares, a super fund, some savings, and so on. Income from all of these could be on the non resident tax rate chopping block. Guys on pensions is a little different, and would depend if the pension is deemed as "income." As for collecting, what you have described is basically doing a runner. He probably couldn't go back to Australia, because he wouldn't be able to leave until he has made arrangements with the ATO.

Ok, so why the 183 days? Why not make it 45 days?

You can't renew your license online because you have to do the eye test. Good tip on the Medicare card.

I did note that part. Of course, for most expats living in Thailand full time, this is no joy for them. If you are outside Australia more than 183 days, and that's the primary test, but inside Australia for more than 45 days, and that's stage two test, which one will they rely upon? It offers some hope, but I can't see someone living overseas for 10.5 months of the year being deemed a resident for taxation purposes because they spend 1.5 months of the year in Australia.