KhunHeineken

https://www.commbank.com.au/about-us/opportunity-initiatives/policies-and-practices/fatca.html#:~:text=You will need to declare,when requested by the bank. "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 link mentions new accounts, but my banks still occasionally ask me to update my residency status. As another member said, it's up to you what you what residency status you declare to them. A false declaration would no doubt be a against the law.

Call it what you will, but it all means remitted funds and global income to Thai authorities.

Big difference. https://www.danmurphys.com.au/product/DM_64866 https://shop.villamarket.com/product/51653

Yes, I agree, but surely most expats are residing in Thailand on assessable income that is over the threshold, thus, will require a TIN for early 2025.

Any ideas on how the authorities may enforce compliance?

When you say "other than for those who have been tax resident for the entire year" don't you mean over 180 days in a calendar year? If so, expats who haven't left Thailand since the 1st Jan 2024 became residents of Thailand for taxation purposes late June 2024, therefore, have 60 days to apply for a TIN, which gives them until September 2024. Aren't you basically agreeing with the member? Surely, most expats are residing in Thailand on amounts of money that are over the threshold, with many on what is "assessable" income? As mentioned, doesn't that mean a big percentage of expats will need a TIN by September 2024?

$60 million a day in interest alone, and that was a year ago. https://www.news.com.au/finance/economy/federal-budget/australia-spends-60m-per-day-on-interest-repayments/news-story/3c9579a7209ad0bb5069e08a5526a3a6

Ouch. https://www.news.com.au/lifestyle/food/drink/who-can-afford-this-shock-at-price-of-beer-pint-in-sydney/news-story/edbe2f91607f27a8426acc435b7018f9

If you can afford cask wine, surely you can afford some Mama Noodles to compliment such fine wine.

No error. I've set it out for you. It becomes a simple physical presence and time based model. I have said I could do 46 days inside Australia a year and meeting the factor tests is no problem for me. I wouldn't be happy about it, but I could do it. However, Labor are looking at increasing the days possibly to 60 days, but probably 90 days. (link previously posted) 90 days would change the game for me. In any case, how is this relevant to your typical Aussie expat retiree that hasn't been back to Australia in some years? How can they possibly argue they are still a resident of Australia for tax purposes?

From Westpac. "CRS is an Organisation of Economic Cooperation and Development (OECD) initiative to address income tax evasion. The global agreement requires financial institutions to obtain and report foreign tax residency information of account holders, and their associated parties, to their local tax authority. The local tax authorities of participating countries will exchange reported information on an annual basis." So, the ATO talks to the banks, and the banks talk to the ATO. The ATO also talks to the tax authorities in other countries, which would be the TRD.

Adelaide Bank explain it quite well. https://www.adelaidebank.com.au/support/foreign-tax-residency/#:~:text=For individual or entity customers,about your foreign tax residency. Westpac. https://www.westpac.com.au/about-westpac/westpac-group/corporate-governance/aeoi/ "If you have an existing account or product with us, we may contact you if we have information to suggest that you are a foreign tax resident." Now, I wonder where that information would come from?

I am not derailing the thread. Look at the thread title. It's about tax residency. If you don't want to discuss the proposed changes, that leaves us discussing the current 90 year old laws that have many loopholes. Which loophole would you like to discuss? The "domicile" loophole? Here it is: https://www.ato.gov.au/individuals-and-families/coming-to-australia-or-going-overseas/residency-tests/residency-the-domicile-test "The domicile test is the first statutory test. You're an Australian resident if your domicile is in Australia, unless we're satisfied that your permanent place of abode is outside Australia." The proposed changes to tax residency are the biggest single issue to face Aussie expats in decades. No just retirees, but also Aussies working abroad. In my opinion, they will be passed into legislation. Why don't you go on the record and say they will or they will not be passed, rather than criticize and sit on the fence?

In the future, there will be no need to "change" anything. It will be a physical presence and time based model based on days inside / outside Australia. No reviews. No appeals. No grey area. All proven by immigration records. Simple as that.

For some reason you never commented on the part of my post that your highlighted, but at least you are on the record. Many just criticize and sit on the fence. I have no problem accepting your differing point of view. I, and many others, hope you are right. There was never going to be a 1000 word reply. The question I have asked others, and yet to receive an answer from anyone, and I don't expect you to answer it either, is, "For how long do you expect 90 year old laws to remain in place before they are modernized?" The current 90 year old laws can't remain forever. At some stage they will have to be updated. Whether we are at that "stage" or not, time will tell.

No, the proposed changes really are that simple. Under 45 days inside Australia, non resident. Over 45 days but under 183 days inside Australia, one must meet two out of the four factor tests. Over 183 days outside Australia, non resident. When you say "other factors" do you mean the "factor tests?" If so, here they are: "Under the Commencing Residency Test, if you were present in Australia for 45 days or more in the current income year, then you will apply the ‘factor test’ looking at whether you would be a tax resident. This includes: Rights to reside permanently in Australia: Whether you have a permanent right to reside in Australia for immigration purposes. Australian Accommodation: Whether there is a legal right or arrangement to access accommodation at any time during the income year (including rental properties, own home, living with parents or other relatives). Australian Family: Whether you have family in Australia. Australian economic Interests: Whether you have an employment contract to work in Australia or carry out a business in Australia or have direct/indirect interests in Australian assets. If you satisfy two or more factors from the above, you will be considered an Australian tax resident." The above was quoted from a random large accounting firm from a Google search.. https://www.grantthornton.com.au/insights/client-alerts/the-atos-individual-tax-residency-changes-open-for-consultation/ Just about every Aussie expat can meet the requirements of the first factor test. Many may be able to meet one or more of the other three factor tests. So, no problem for an expat who is prepared to do 46 days in Australia every year. However, if you are out of Australia for 183 days, that's the end of the story. You will be a non resident for tax purposes, and I would suggest that applies to the majority of Aussie expats in Thailand.

If you have WISE, try their virtual card.

Yes, a good result, however, many people have lost money, and have had legal battle with banks over disputed transactions. Once again, you have to deal with the bank. Ring them or wait in a queue. Cancel the card. Wait on the post for a new card. Activate the card. With the virtual cards, you just delete the current one and generate another one. Job done in a couple of minutes.

Do you disagree? Are you stating you believe the proposed changes WILL NOT be passed? Go on the record. So, pensioners who go overseas on a genuine holiday, and find they lose their supplements after 6 weeks, how does that happen? They didn't inform Centerlink of their travels. How did Centerlink know to stop their supplements?

Like I posted before, probably the easiest virtual card many members of AN can get is a WISE virtual card. WISE is popular with expats in Thailand. Sign into your account and you'll have one in a couple of minutes. They are free, and you can make a new one anytime you think the number may have been compromised. Here's the link for K-Banks virtual card. I have no experience with K-Bank's virtual cards, but will check it out. I would think they work the same way as every other virtual card. https://www.kasikornbank.com/en/kplus/instruction/virtual-debit-card-1-e-sa

The think is, you never know when the 4th fraudulent transaction may happen, and if it's successful, and cleans out the account, you've got some problems. The less you use your card the better.

Australia has the third highest beer and spirit tax in the world. The Lucky Country.

This is exactly what the proposed changes were designed to do, and that's certainty for the ATO, and the individual, what their tax residency status is. Under the old system, based around where one was "domiciled" your friend would have issues with the ATO, because the ATO could say you have brought a property in Thailand, so therefore you are now "domiciled" in Thailand, therefore a non resident for tax purposes of Australia. After the proposed changes are passed, basically, 183 days inside Australia, resident, 183 days outside Australia, non resident. No need for auditing this, and everyone will know the rules and where they stand. The days of arguing you are "domiciled" in Australia, despite not being back in Australia in years will be over. Thus, one will not be able to "elect" anything in the future. It changes to a physical presence and time based model.

Which would be a false declaration after the proposed changes are passed, and one has been outside of Australia for 183 days.

Everyone's financial circumstances are different. It comes down to tax residency, type of income earned, the amount earned, DTA etc etc. For some, it may be beneficial to liquidate all assets in Australia and place the money in an Australian bank account paying around 5%, informing the bank of your non resident status, and living off the interest, minus the 10% tax. Others may need to set up a more complex financial structure. There may also be some people who simply will not be able to afford to live overseas as a non resident of Australia for tax purposes without taking a major hit to their lifestyle. These tax/s will effect different people differently.