Becoming expat in your 50s, money in Australia, what did you do?

[Will27]

 

11 minutes ago, KhunHeineken said:

Have you noticed quite a few recent threads, not started by myself, mention resident / non resident for taxation purposes? 

 

Some members, and I am one of them, state they haven't been back to Australia for years, yet are still claiming to be a resident for taxation purposes.  The proposed changes that have been discussed will close this loophole not only for the wealthy, but for everyone, because as it stands, there are no exemptions, or non resident tax free threshold mentioned in the proposed changes.  

It doesn't hurt to be aware of any proposed changes and have a plan B, but it's no use jumping off a building until such changes are implemented IMO.

Edited September 25, 2023 by Will27

[Will27]

2 minutes ago, KhunHeineken said:

Perhaps you can explain how an expat who has been living in Thailand for the last 3 years, or longer, can argue with the ATO in the future that they are still a resident for tax purposes. 

 

Things are changing.  It's been discussed at length in the other thread.  Having a house, bank account etc will not be the criteria the ATO will be using to classify you in the future.  

 

You will be deemed either resident or non resident based on time and physical presence, not domicile and "intention." 

 

Currently, anyone can say they have the "intention" of returning to Australia, and for those who still have a property, can show they have a "domicile" in Australia.  The reality is, most have no intention of living in Australia again, whether they own a property there or not.  The proposed changes will address this loophole for everyone, not just the wealthy. 

I mentioned this earlier today.

 

People think even under the current rules that staying in Thailand for years on end and not even going back for a visit that they will remain a resident because of a house or local address is pie in the sky stuff IMO.

[KhunHeineken]

11 minutes ago, Will27 said:

 

It doesn't hurt to be aware of any proposed changes and have a plan B, but it's no use jumping off a building until such changes are implemented IMO.

I agree, but some time ago we had a lot of funny comments from those not willing to face the prospect that they may need to consider a Plan B for the future. 

 

The "That's just for guys like Paul Hogan" was one of the funniest, and more memorable.   

 

As discussed, expats who are non residents for tax purposes should already be paying the tax.  These are not new taxes being proposed, just new laws that make enforcement a lot easier for the ATO.

[Will27]

2 minutes ago, KhunHeineken said:

I agree, but some time ago we had a lot of funny comments from those not willing to face the prospect that they may need to consider a Plan B for the future. 

 

The "That's just for guys like Paul Hogan" was one of the funniest, and more memorable.   

 

As discussed, expats who are non residents for tax purposes should already be paying the tax.  These are not new taxes being proposed, just new laws that make enforcement a lot easier for the ATO.

The trouble was though, that after making your point, you just kept making it again and again.

 

A bit like you're starting to do now.

Edited September 25, 2023 by Will27

[KhunHeineken]

13 minutes ago, Will27 said:

I mentioned this earlier today.

 

People think even under the current rules that staying in Thailand for years on end and not even going back for a visit that they will remain a resident because of a house or local address is pie in the sky stuff IMO.

I agree.

 

I have asked members who have said they have lived in Thailand for years, but are still a resident for tax purposes, what argument would they put forward to the ATO when their letter arrives? 

 

How can one argue they are a resident for tax purposes when they have been living in Thailand for years?  

 

The days of being able to say I am just on a 3 year holiday and have the "intention" of returning to live in Australia are coming to an end. 

[KhunHeineken]

1 minute ago, Will27 said:

The trouble was though, that after making your point, you just kept making it again and again.

 

A bit like you're starting to do now.

As I said, the subject has been mentioned in several new threads, not started by myself.  I have referred the OP's, and other members, to the thread where it was discussed at length, and with many links posted. 

 

A lot of the plans the OP's have, and the information requested by them, relies a lot on their tax residency status, so they should check out the discussion in the other thread.  

[gearbox]

3 hours ago, KhunHeineken said:

You are talking about the tax free threshold, and it's not just for interest, it's all forms of income. 

 

The tax free threshold does not apply to non residents for tax purposes.  It's 32.5% from $0 to $120,000. 

 

One should not just be relying on a single rental property for living in Thailand, and you forgot that the rent received also decreases a pension.  

 

Once again, your figures are based on being a resident for tax purposes, which many living in Thailand are not.  

 

This has been discussed to death in the other thread. 

 

Yes, you, me, and many on this thread are currently using 90 year old legislation that says if you maintain a "domicile" in Australia you can remain a resident for tax purposes.

 

As discussed in the other thread, with many links provided, the previous Liberal government put forward proposed changes, and the current Labor government are aware of them, that basically sets out the criteria be changed from "domicile" to a time based criteria, and based on physical presence.  

 

This will have implications for you, me, and many on this thread.  

 

Basically, immigration know you are not in Australia for 183 days, and they inform Centrelink and the ATO, then, you are treated as a non resident for tax purposes.  All done by computer data bases.  Simple, cheap, and no loop holes.  No appeals, no reviews.  Inside Australia 183 days, resident, outside Australia for 183 days, non resident. 

 

It means you will be paying 32.5% tax from dollar number one on all income, including a pension, and yes, a pension is deemed to be an income.  Links have been provided for this.

 

So, can you maintain your current lifestyle in Thailand with 32.5% less money?    

 

Superannuation pensions are not taxable income, they can be taken tax free by non-residents.

[KhunHeineken]

18 hours ago, gearbox said:

Superannuation pensions are not taxable income, they can be taken tax free by non-residents.

Don't quote me on this, but I think that's if you are over 60 years of age.  The OP is in his 50's.