KhunHeineken

It's almost like you are finally admitting that you got it a bit wrong regarding the bright line test and expats that haven't returned to Australia in several years. Good job. The proposed changes makes "looking at you" a lot easier for the ATO, do they not? As I have just posted, if you haven't been back to Australia for more than 46 days in the last 3 years, and I suggest this is the majority of expat retirees, then the 183 day rule in the proposed changes comes into play every year thereafter. This would mean ongoing non resident tax on any income derived from Australia, and it's been proven the pension is deemed an income, and is taxable. Same question to you. How many expat retirees do you think are capable of returning to Australia for 46 days to reestablish residency? Remembering, the 45 days MAY become 90 days. If the poll I mentioned in a previous post ran, what percentage results do YOU think would be the outcome?

No, but you are. That's why they are "proposed changes." How many times do I have to ask you, how many expats are capable of returning to Australia for the 46 days, and meeting one out of the remaining three factor tests???? First of all, they have to have the health to do so, mainly being mobility. Many have a Thai missus caring for them. Then they have to have the funds to afford the flights and cost of living for a minimum of 6 weeks. Then they have to meet one of the three remaining factor tests. Admittedly, the factor tests may not be scrutinized. Eg. property ownership or having a lease. I am aware 45 days in the past three years is somewhat of a loophole. Yes, it's in the proposed changes. I get what you are saying. Are we clear on that now? I have said 46 days and two out of the four factor tests are no problem for me, and it appears neither are they for you, but that may not be the case for many other expats. Also, the Labor government has stated they are looking at increasing the 45 days to 60 or probably 90 days. (link previously posted) This increases the time one must spends inside Australia every 3 years. As I have posted several times, how many expats do YOU think are capable of reestablishing residency? I've addressed some of the main hurdles facing many of them. What you fail to understand is, many have not returned to Australia in years. Therefore, the 45 days every 3 years is irrelevant to them. They are definitely non residents for tax purposes, with many not being capable of returning to Australia to reestablish residency. Just look at all the threads about returning to Australia for 2 years to achieve portability and the hardship it causes. If we took a poll on this forum of expats with the simple question: "Have you been back to Australia for more than 45 days in the last 3 years?" Yes or No. How many do YOU think will answer "Yes?" If you haven't been back to Australia in the last 3 years, then the 183 day rule, every year thereafter comes into play. Are you stating the 183 days outside of Australia does not apply to expats that haven't been back to Australia in years?

Again you ignore that many expats haven't been back to Australia in years. What is your advice to them on how to remain a resident for tax purposes in order to avail themselves of the tax free threshold?

Same questions to you. Is an expat that hasn't been back to Australia in several years a resident or non resident for taxation purposes? Is this demographic a few, or many? Given the pension is deemed an income, and the pension is taxable, what advice do you have for these expats? After the proposed changes are implemented, how many days do YOU say one has to be outside of Australia before being deemed a non resident for tax purposes?

Yawn. Been through this with you before and you always decline to reply. Your typical Aussie expat retiree hasn't been back to Australia in several years. Do you agree? Yes, or no? What's your advice to these expats about how they can remain a tax resident of Australia, in order to avail themselves of the tax free threshold, AFTER the proposed changes are legislated and implemented? Many can't afford the flights, let alone living in Australia for 46 days, then they have to meet two out of four factor tests. One is super easy, one out of the other three may not be easy for them to meet. It's not scaremongering. The proposed changes are there for all to see. They will close the loopholes in the current 90 year old laws. Non residents will be taxed at non resident rates. The pension is deemed an income an the pension is taxable. After the proposed changed are implemented, perhaps you can tell us just how many days one must be OUTSIDE of Australia before they are deemed to be a non resident for tax purposes. You are still looking at it from the perspective of keeping your Australian tax residency status. So am I. I have said before I could do 46 days in Australia, but wouldn't be happy with 60 or 90 days, but what about all the expats that haven't been back to Australia in years? What do YOU think their tax residency status is now, and will be, after the proposed changes are implemented?

Many expats are price conscious, otherwise know at Cheap Charlie. I posted a "generic link to Lazada" which had a broad range of styles, models, capabilities, and prices. If the OP posted his requirements in relation to these, I, and other members, would be able to narrow down some routers to select from. So, I disagree. More information is needed. Eg. budget.

"Stalled" really? The consultation phase only finished in September 2023. I agree. Why do you say there is no possibility of a 1 July 2025 start?

Wrong. The consultation phase was between 21 July 2023 to 22 September 2023. https://treasury.gov.au/consultation/c2023-205344 Here's the consultation paper. https://treasury.gov.au/sites/default/files/2023-07/c2023-205344-cp.pdf So much for "Labor and Albo" scrapping them. I have no idea when they will be implemented, but will go on the record and say it's when and not if. In my opinion, they WILL be passed into legislation. I believe the next federal election must be held on or before the 27 September 2025. In my opinion, the amount of days per year one is either inside or outside Australia will be calculated per financial year, not calendar year like Thailand. On that basis, I would say key dates would be the May budget for a 1 July 2025 start. Even if the proposed changes are not mentioned in the May budget, they could still pass through parliament for a 1 July 2025 start. Should they not start on the 1 July 2025, then I agree with you, they will not start before the next federal election, and the next possible start date would be 1 July 2026.

Like I said, "death and taxes." The member seems to think these Thai tax/s are flying pigs, but I don't dismiss it so easily.

You received what you call pointless posts because of the lack of information you posted in your OP. What's your budget for a router?

Like most things, you get what you pay for. If you were on a fiber connection it would be worth spending more to give yourself more option, both now, and in the future. However, you will be using a sim card which will most likely be receiving a 4G signal. No point spending big money on a router that will always be restrticted to the speed of the 4G data connection to the phone tower. Have you done a speed test on your phone? What speed are you getting in your location?

Life is also about "change." Things out of our control "change." Time brings "change." Nothing stays the same forever. What's that saying about certainty and "death and taxes?" The "probability of not paying a dime in tax" as you put it is changing to the very real "possibility" that you will have to pay tax here in the future.

And has been asked by me to members here, many times, how does an Aussie expat living in Thailand, who has not returned to Australia for several years, argue they are still a tax resident of Australia? This scenario describes the majority of Aussie expats here, does it not? Perhaps you can answer this question. The current 90 year old laws practically allow everyone and anyone to declare they are "domiciled" in Australia, therefore a resident for tax purposes. The "long holiday" scenario. I've been using this loophole myself. The idea of the proposed changes is to modernize the current 90 year old laws to a physical presence and time based model. Obviously, this is easily proven by immigration records that can not be challenged. It also goes to compliance and enforcement, not just deeming one's tax residency status.

It's easy to get around most pay walls, but I can't post about it here. Yes, and it also says this: "Assistant Treasurer Stephen Jones told an Australian Chamber of Commerce event in Singapore this week the new rules for deciding Australian tax residency were in “the government’s in-tray” ahead of the October budget, and the day limit was “being looked at”. Big difference from all of those members who though "Labor and Albo" would never pass the changes. The tweaking of the day limit has been explained previously. Basically, an expat worker may wish to be a non resident. They may get 6 weeks leave a year. (45 days) They return to Australia for their leave. They stay under 45 days in Australia. A family member is sick or injured or dies or gives birth or gets married etc and they return home. They go over the 45 days to attend this "event" and may then be deemed a resident for tax purposes. Working expats called on Labor to increase the 45 days. It may go to 60 days, but probably 90 days in line with other countries. That's not good for some retirees here who would have liked to return to Australia for 46 days and can meet two of the four factor tests. It means they will have to return to Australia for 60 or maybe 90 days to achieve resident for taxation purposes status in order to escape the non resident tax brackets. Yes, it was. Does that mean the proposed changes have gone away? (see above quote from the article) Do you have a link to show Labor has scrapped them? Sure. However, Liberal proposed them, Labor didn't bin them, so either way, either party will eventually legislate them.

Did you tell them this beer was named after the horses that pulled the beer carts for deliveries to the pubs?

Correct. As you said, "if they are aware" which is why the current 90 year old laws will change in the near future to a physical presence and time based model, just like Thailand with their 180 days a calendar year, Australia will be 183 days in a financial year. Immigration records will make the ATO "aware" who will most likely make Centerlink "aware" which MAY see the aged pension taxed at non resident rates because it is an income, and it is taxable.

Wrong. It's been proven the aged pension is an income at law. It's been proven the aged pension is taxable. The non resident tax rate is 30% from $0 to $135,000. After the proposed changes are passed, the government will have the ability to automatically deem an individual a non resident for tax purposes after being outside of Australia for 183 days in a financial year. The information in the video you are referring to shows the DTA does not include aged pensions. Another member has posted a link setting this out. Here's another one. https://community.ato.gov.au/s/question/a0J9s000000O2y4/p00197245 "As a non-resident for tax purposes, we'll only tax you on the income you receive from Australia sources such as interest and your pension."

The 183 days is the "primary test" also called the "bright line test." I can post the information for you, but I can't understand it for you.

You never gave any advice to Aussie expats who have been living in Thailand for several years and have not returned to Australia? They want to hear your genius idea for them on how they can remain residents of Australia for tax purposes under the proposed changes when they haven't been back in years, and have no intention of doing so.

Liquidating all assets in Australia and putting it into cash at bank, then officially declaring themselves a non resident for tax purposes may be financially beneficial for some. Of course, then there's the Thai tax/s to deal with, but that's running in another forum. Under the current DTA, you would get a 10% tax credit towards any tax liability owed in Thailand.

You finally got it. The penny dropped. So, as I was saying, how many Aussie expats could reestablish residency? How many can meet two of the four factor tests? One is very easy to meet, basically, have an Aussie passport. How many could meet one more out of the four? Eg. property ownership, Lease, business interests etc. How many Aussie expats can afford the flights? How many could afford to live in Australia for 45 days? I know I can. You have said you can also. What's your advice for those who can't meet two of the four factor tests, or can't afford to go back to Australia and live there for 45 days?

From one of many accounting firms alerting their clients. Now, do you see the part that says " spend more than 45 days but less than 183 days in an income year?" That's because if you spend more than 183 days outside, you are a non resident because like you said, you are either inside Australia or outside Australia and for majority of expats, the magic number of days is 183 days. As I said to another member, I am posting in general, not about specific member's personal circumstances. Most Aussie expats in Thailand have not been back to Australia in several years. They will be deemed as non residents for tax purposes under the proposed changes and proven by immigration records. https://hlb.com.au/tax-residency-changes-for-individuals/ Proposed tax residency rules Therefore, the Government in the 2020-2021 Federal Budget announced that it will replace the current individual tax residency rules with new primary and secondary tests to determine one’s tax residency. The primarily test is the 183-day test, that is, if a person who is physically present in Australia for a period of 183 days or more in any income year, this person will be considered as a resident for Australian tax purposes. The secondary test is a ‘Factor Test’ which applies to individuals who spend more than 45 days but less than 183 days in an income year. The secondary tests focus on four factors, two of which must be satisfied by that person to be deemed as resident for tax purposes. Factors include: The Right to reside permanently in Australia (e.g. citizenship or permanent residency); The ability to access accommodation in Australia (e.g. rights of ownership, leasehold interest, licenses); Whether the individual’s family (spouse or any of their children under 18) are generally located in Australia; The individual’s Australian economic connections (employment, carry on business, interests in Australia).

I have said I see YOUR point. As in YOUR personal circumstances. I have also said, how many expats are in similar circumstances to YOU? I am postng "in general" not about YOUR personal circumstances. Your typical Aussie expat hasn't been back to Australia for several years. Tell me how YOUR circumstance also apply to them? So funny that someone seems to think everyone has the same personal circumstance as yourself in regards to the proposed changes to tax residency.

Assuming an interest rate of 5%, that would be $900,000 invested to return $45,000. (not including tax)

Yes, these were my thought. One would need a considerable amount of money to earn interest over the threshold, so that would mean withdrawing the capital to maintain one's lifestyle. This would bide some time, in Mike's case, around 5 years, but probably less for many others. Ultimately, you reach a point in time where you are faced with the same situation that many will be facing early 2025.