KhunHeineken

You are in different circumstances now. They will tax it before it gets to you.

You could be sent a bill, which then goes into the collections discussion we have had on this thread if you don't pay, or, they withhold some of your pension, and instruct your superfund to do the same, in the same way they instruct your bank to tax interest at non resident rates. It means you just get less a month to transfer to Thailand. Around 32.5% less, from dollar number one.

Yes, that's what I said about savings accounts. Have a rental property, or two, and some shares, or super payments, then that's a different story. The thing is, once they get your 30% of $70, you are in their system, and then they chase everything else.

It's not stated in the link. The ATO and banks are just doing it for fun. Nothing will come from the information collected, ever. ????

Your link is dealing with residents for taxation purposes. Check out this link. https://simplyretirement.com.au/tax-super-overseas Quote: "Additionally, should you draw a pension from an untaxed superannuation fund, and these are largely limited to Government, public sector funds, then you may be taxed on your pension on a non-resident basis in Australia should you retire overseas. Non-resident tax rates are higher than residents tax rates because there is no tax free alowance. That tax may, or may not, be available as a tax offset in the country of residency." Also, Australia and Thailand have a tax treaty, but of course, this is nothing to worry about.

All the banks have a page like this. Here's Commbank's. https://www.commbank.com.au/about-us/opportunity-initiatives/opportunity-from-good-business-practice/sustainable-business-practices/fatca.html Quote: "New laws require you to tell us about your tax residency on account opening and to let us know if this changes CommBank will need to report certain account information to the Australian Taxation Office (ATO) The Australian Government has committed to a new global standard on the automatic exchange of financial account information. Their aim is to cut down on tax evasion by sharing information about foreign tax residents with other tax authorities." I've had my account/s for years. They are obviously collecting the same information retrospectively. I have no doubt the ATO will use the information not only to work with other jurisdictions, but also for themselves, but this is my opinion, I don't have a link for it, so no need to call it out.

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.