KhunHeineken

Many pensioners are hoping you are right, and their pension is tax free, no matter where they chose to live in the world, so please post a link to "the Act" with the relevant clause of information that sets this out so the champagne can start flowing.

I agree, and well said.

You quoted "the Act" so you should link it, and highlight the relevant information in your narrative.

Once again, irrelevant, as immigration knows we are outside of Australia for 45/183 days. If only it was as simple as moving money offshore once a year.

Eagerly awaiting "the Act" link.

We are not living in Australia. We are living in Thailand. The game changes. Another member has asked you for a link to "the Act" and so will I. Please post the act saying that a pension, which is deemed an income, is exempt from non resident tax for those choosing to live abroad in retirement. No, taxation laws for non residents have been the same for 90 years. That 90 year old legislation has a lot of holes in it, and that's why we have all got away without paying. The proposed changes are not a new tax. The proposed changes just close the holes that many, including myself, have slipped through for years.

How much detail does it give the immigration department to unravel - ZERO. They will be the ones to inform Centerlink / ATO you have been outside of Australia for 45 / 183 days. All done by a computer.

You are correct, the service pension is tax free, but, many recipients of a service pension also worked. Their total income, which includes their service pension, goes into the mix for the ATO and treated as combined income. We have already establish a pension, of any sort, is deemed to be an income. A veteran living outside of Australia is still a non resident for tax purposes, thus, their services pension will be classified as any other pension and taxed at non resident rates. It's all about tax residency, not what type of pension it is.

As per the calculations of another member, it's a loss of $240 a fortnight. This may put some pensioners in some financial hardship, causing a decline in lifestyle, or, a return home to qualify for tax resident status every year.

The proposed legislation is a fact. That's all we have ever discussed on this forum. I have never stated that they have been passed into law. You can sit back and do nothing until they are passed, or thrown in the bin, or, plan for the possibility they do get passed and the consequences thereof, but to say the proposed changes are not a fact is laughable.

Clearly, it means more than "diddly squat" when accounting firms, financial planners, investment houses etc are warning their clients. It's not about "worrying" but about preparing. there is a difference. For a non resident for taxation purposes, I don't think so. So, by your calculations, it's possible pensioners will lose $120 a week, yet, some people believe the proposed changes "are only for guys like Paul Hogan." Now, by your own calculations, it appears it's for everyone. Yes, we all should have been paying non resident tax, even pensioners. It's not a new tax, just a new way to enforce that it's paid. For someone who is not "worrying" about it until it comes in, why even bother doing the math?

And yet, just an hour ago, a member was still under the belief the tax free threshold still applies to non residents for tax purposes. How many members still believe the proposed changes are only for guys like Paul Hogan, and if you still have a Medicare Card you are still a resident for tax purposes.

It's proposed legislation. Is that a fact, or not? How many links do you need to see showing you this? Where's the "opinion" in it. There were proposed by the Liberal government and they are in Labor's "in tray." Link provided for this also. Can you post a link that shows I have made the proposed changes up, or it's all fake news? I've posted link after link after link. Where's the "opinion." The proposed changes are there for you to see. Sure, we can discuss law interpretation, tax minimization strategy etc, but to say the proposed changes is just my "opinion" is BS. It's all over the internet from credible sources, even the government's. Proposed changes - fact. Links provided. Pensions are income - fact. Links provided. Pensions are taxable - fact. Links provided. No tax free threshold for non residents - fact. Links provided. Show me where the above is just my "opinion."

Correct. Only a small amount of foreigners have permanent residency.

I believe there are a small amount of foreigners that hold permanent residency here. The criteria and hoops to jump through are difficult.

No deflecting at all. By all means, be as direct as you like. Here are the resident tax rates and non resident tax rates from the ATO website. Can you show me where is the tax free threshold for a non resident for tax purposes? See the part $0 to $120,000 is 32.5% tax. That's on the whole $28,514 once deemed to be a non resident for tax purposes. We all know there's a tax free threshold if you are a resident for tax purposes, but that's not relevant to most Aussie expats living in Thailand who will be deemed to be a non residents for tax purposes when the new laws are legislated. Foreign residents tax rates 2023–24 Foreign resident tax rates 2023–24 Taxable income Tax on this income 0 – $120,000 32.5c for each $1 $120,001 – $180,000 $39,000 plus 37c for each $1 over $120,000 $180,001 and over $61,200 plus 45c for each $1 over $180,000 Australian residents tax rates 2023–24 Resident tax rates 2023–24 Taxable income Tax on this income 0 – $18,200 Nil $18,201 – $45,000 19c for each $1 over $18,200 $45,001 – $120,000 $5,092 plus 32.5c for each $1 over $45,000 $120,001 – $180,000 $29,467 plus 37c for each $1 over $120,000 $180,001 and over $51,667 plus 45c for each $1 over $180,000

Tax residency status, for both Australia, and now for Thailand with it's new policy, is like Covid - we are all in this together.

Good to finally get some content from you. So you will meet the 45 days test, and easily meet the the second factor tests of being an Australia citizen, and having family ties. As it reads to me, you'll have to do 45 days in Australia each financial year. Do you agree, or disagree? There's also the new policy of Thailand to consider that they will start to tax remitted funds into foreigner's bank accounts. I haven't read Australia tax treaty with Thailand yet, but if pensioners have to pay, it's around 7500 baht a month. Link to Thailand's tax brackets posted previously. This is how you, me, and many others, have slipped through the net for decades. That will change when the proposed changes are legislated. If we want to remain tax residents of Australia, it will involve a "physical presence" in Australia for either 45 days or 183 days. As I have said, the pension payer will not also be the tax collector of the same funds. Why would they be? They will simply withhold the 32.5% of pension.

And how informative are yours? When the last time you posted a credible link debunking anything I have put forward on this thread?

And how much of these would you have to export to pay off $1 Trillion of debt? Look at the thousands of dollars in debt increasing by the second. https://australiandebtclock.com.au

I agree. Thailand does not offer a realistic pathway to permanent residency, let alone citizenship, as Australia does. A retirement visa gives the holder no more rights here than a tourist entering on a 30 visa exemption stamp.

Seems pretty clear to most accountants and investment firms. In Australia more than 183 days, resident for tax purposes. Outside Australia for 183 day, non resident for tax purposes. In Australia between 45 days and 183 days, move to the "factor test" which has some criteria that most expats should be able to meet, but that means 45 days in Australia, every financial year.

See where it says "ATO Certified Response?" You'll have to take it up with Blake, from the ATO. Incorrect. The pension is taxable. https://www.ato.gov.au/individuals/income-deductions-offsets-and-records/income-you-must-declare/government-payments-and-allowances/#:~:text=You must include taxable Australian,carer payment Taxable pensions, payments and allowances You must include taxable Australian Government pensions, payments and allowances in your tax return. Taxable government payments, pensions and allowances include: age pension carer payment Austudy payment JobSeeker payment Youth allowance Defence Force income support allowance (DFISA) where the pension, payment or allowance that it relates to is taxable veteran payment invalidity service pension, if you are age-pension age or over disability support pension, if you are age-pension age or over income support supplement parenting payment (partnered) disaster recovery allowance (but not in relation to 2019–20 bushfires). This is not an exhaustive list, for a full list of Australian Government payments, pensions and allowances, see: All set to change to "physical presence" and "time" based legislation, from "domicile" and "intention" based legislation, which is 90 years old and how allowed many expats, including myself, to slip through the net.

Too funny. More workers means more income tax means a bigger economy which means the ability to service more debt. So, tax our resources more and make them uncompetitive on the world market and countries will still buy from us. Really?

The Ostrich Syndrome is similar to the My girl is different syndrome. People need to believe that they are still an Australian resident for taxation purposes, despite living in Thailand for years. They really need to think they are "different" to Paul Hogan.