Australian non tax resident- non-financial issues.

[CaseyJones]

Good day,

I have seen some healthy and informative discussion on the financial issues of being non tax resident of Australia.

Are there any other issues to be aware of that are not related to tax/income IE Health, immigration, partner visas etc?

 

Thanks,

Casey

[gearbox]

2 hours ago, CaseyJones said:

Good day,

I have seen some healthy and informative discussion on the financial issues of being non tax resident of Australia.

Are there any other issues to be aware of that are not related to tax/income IE Health, immigration, partner visas etc?

 

Thanks,

Casey

AFAIK we lose Medicare access after 5 years of absence, but in practice it doesn't seem to be enforced.... probably there is no data matching yet between the border control and Medicare.

[JimHuaHin]

14 hours ago, gearbox said:

AFAIK we lose Medicare access after 5 years of absence, but in practice it doesn't seem to be enforced.... probably there is no data matching yet between the border control and Medicare.

This is secondhand, so I do not know how reliable it is.

 

Last year an old Australian friend who had been working in Thailand for about 20 years, but had not been back to Australia for 7-8 years, had to verify his identity online with his Australian bank.  He was required to use 3 of 4 forms of identity - passport number, birth certificate number, Medicare card number or driver's license number - he used the first three, no problems.

[gearbox]

3 hours ago, JimHuaHin said:

This is secondhand, so I do not know how reliable it is.

 

Last year an old Australian friend who had been working in Thailand for about 20 years, but had not been back to Australia for 7-8 years, had to verify his identity online with his Australian bank.  He was required to use 3 of 4 forms of identity - passport number, birth certificate number, Medicare card number or driver's license number - he used the first three, no problems.

From the government source:

 

https://www.smartraveller.gov.au/before-you-go/activities/retiring-overseas

 

Living overseas and Medicare

Only Australian residents can use Medicare. You can access Medicare for treatment in Australia up to 5 years after you move overseas. 

After 5 years, you won’t be able to access Medicare unless you move back to Australia to live. You’ll need to re-enrol before you can access payments. You must show proof you intend to stay in Australia to re-enrol. 

 

However this doesn't seem to be tracked and enforced at the moment. You are ok as long as you have an address in Australia to get Medicare card sent to. There is no guarantee it will be the same in the future. The government has the data from the border to track and enforce, but it seems low on their to do list.

[Nomadic1460]

This is first hand info. I lived in Thailand over 15 yrs until covid 19 pandemics but had short trips back home during that time. There is no problem of having medicare card again but when you want to private health insurance like NIB ,HCF or BUPA they contact Medicare and they do some calculations how long Medicare  claims have not been made or card used , then they charge you more than anyone who is becoming a new member. I think i pay %2 or 2.5 more. That  is all.

I hope this helps

[gearbox]

14 minutes ago, gearbox said:

From the government source:

 

https://www.smartraveller.gov.au/before-you-go/activities/retiring-overseas

 

Living overseas and Medicare

Only Australian residents can use Medicare. You can access Medicare for treatment in Australia up to 5 years after you move overseas. 

After 5 years, you won’t be able to access Medicare unless you move back to Australia to live. You’ll need to re-enrol before you can access payments. You must show proof you intend to stay in Australia to re-enrol. 

 

However this doesn't seem to be tracked and enforced at the moment. You are ok as long as you have an address in Australia to get Medicare card sent to. There is no guarantee it will be the same in the future. The government has the data from the border to track and enforce, but it seems low on their to do list.

Further to that....as everything else there are grey areas.

 

https://www.expattaxes.com.au/medicare-for-australian-citizens-overseas/

 

It is not very clear what happens if you are tax resident and pay Medicare levy but live overseas.

 

As discussed in the above article the government may take Medicare access as a factor when deciding on tax residency.

 

And also one subtle thing about travel insurance - all the insurers I know about require the policyholder to be a resident of some country for medical purposes. It is usually the country of citizenship. If the ongoing medical expenses are piling up, they may decide to dump the policyholder to the national health service and terminate the cover. So it is not clear what happens  if you are in trouble, have travel insurance, but not Medicare.

[Stevemercer]

My wife (living in Thailand, but also an Australian ciizen) hadn't used her Medicard for many years and recently asked me to get a new one when I was last in Australia. From memory, it was ultimately easy to do (e.g. there were no checks) but we had to provide 2 separate  'proof of address'. She did have 2 Australian bank accounts an we printed out statements which were accepted.

 

You need to maintain an active account in 'MyGov' where you can link to Medicare, the Tax Office etc. This amkes things simpler, but you do need an Australian addess.

[CaseyJones]

Thanks for the advice guys.

 

[CaseyJones]

Apart from the official line, any hearsay stories of being treated differently by Australian authorities because you are non tax resident?

 

 

[pest]

Im non tax resident been here 22 years never had any issues with BOQ or Anz 

They both have sent cards to me here but i have still used my Aus address too for my statements 

I did try go paperless but only Anz came to the party Boq still send me a statement on my overseas incoming funds? 

[KhunHeineken]

9 hours ago, gearbox said:

It is not very clear what happens if you are tax resident and pay Medicare levy but live overseas.

I maintain private health insurance in Australia, so I am covered. 

 

This is a similar issue to the non resident taxation issue.  The data bases are all starting to communicate with each other, and when Australia moves to a physical presence and time based model for tax residency, for sure it will have some form of impact on the availability of Medicare for expats. 

 

Basically, the days of living overseas for years, and paying no Medicare levy, and flying back to Australia for free medical treatment, will be over, and the 5 years enforced. 

 

It will not matter if you have an "address" in Australia because they will know you are not living at that address, and in fact are living overseas. 

 

As I have said, one should not rely upon Medicare for treatment of serious injuries or illnesses. 

[KhunHeineken]

9 hours ago, Stevemercer said:

You need to maintain an active account in 'MyGov' where you can link to Medicare, the Tax Office etc. This amkes things simpler, but you do need an Australian addess.

As just mentioned in a previous post, the day is coming where there will be no point being able to supply an address, when the government data bases know you are not living at that address, and are living overseas. 

[KhunHeineken]

2 hours ago, pest said:

Im non tax resident been here 22 years never had any issues with BOQ or Anz 

They both have sent cards to me here but i have still used my Aus address too for my statements 

I did try go paperless but only Anz came to the party Boq still send me a statement on my overseas incoming funds? 

Why would there be any issues? 

 

All it means is you pay a higher rate of tax. 

[Pattaya57]

I was overseas for the 2000's and my Vic licence expired as I was using a UAE licence. I was shocked to find that if your licence expires more than 5 years you can't renew and you have to do the entire licence test again like a learner driver (even though I had UAE licence)

 

Luckily I was flying into Qld 4 years and 11 months after Vic licence expiry and renewed/converted it to Qld licence no problem using my sister's address

 

Note: you can now renew online if licence expired less than 6 months

 

[Pattaya57]

Also, as a non-resident for tax for 9 years my Medicare card expired. I renewed it while non-resident without any issue. 

 

I didn't use medicare card though as didn't want want to jeopardise non-resident status for a $35 GP rebate. It was nice to have if ever needed in an emergency though.

 

[KhunHeineken]

2 hours ago, Pattaya57 said:

Note: you can now renew online if licence expired less than 6 months

Correct me if I am wrong, but I think age has something to do with renewing online. 

 

Once over a certain age, I don't think you can renew online, because you have to read the eye sight chart. 

[KhunHeineken]

One minor thing to consider is your passport really isn't a 10 year passport.  It's actually a 9.5 year passport. 

 

You will not be allowed to board a flight with a passport with less than 6 months validity. 

 

Probably ok for a flight back to Australia, but for any other international travel, you need 6 months validity.

 

So, best to get a new passport prior to 9.5 years. 

 

I have no idea why this rule is in place.  Someone looking to have a 2 week holiday in Thailand, and they still have 5 months left on their passport, what's the problem? 

[Lazybones]

On 10/13/2024 at 5:59 AM, KhunHeineken said:

Correct me if I am wrong, but I think age has something to do with renewing online. 

 

Once over a certain age, I don't think you can renew online, because you have to read the eye sight chart. 

I'm 83yo and renewed  my licence online about 3 months ago but it appears to be for 3 years only

[willr]

As soon as I informed service's Australia that I was retiring overseas and supplied overseas bank account, My Medicare was discontinued. 

I looked up online on My Gov . Com and yes it said I no longer qualified for Medicare.

Also when doing your tax return make sure your not slugged for Medicare excess. 

[4MyEgo]

On 10/12/2024 at 7:19 PM, CaseyJones said:

Apart from the official line, any hearsay stories of being treated differently by Australian authorities because you are non tax resident?

 

 

 

Been here over a decade.

 

If you hold real estate, you may want to reconsider as the capital gains tax will be high and I believe, goes back to the day you purchased the property, not when you left the country, but pleas do check with an accountant, also if you rent the property, you cannot negatively gear it, i.e. claim anything back as a loss annually, only when you sell it.

 

Any income earned in Oz is taxable at around 32.5c to the $, also there is no $18,200 threshold so its from the 1st dollar, e.g. a 1/3rd of what you earn goes in tax as a non resident.

 

I renew Medicare online before it expires, use an Australian address to receive the new card, and I use it when I go back, every 2-3 years so the 5 years restarts.

 

Drivers license NSW, could renew with a form from here for the 1st time, sent it in with photos, again used Oz address to receive it. This can only be done once.

 

I tried renewing it online the next time, was told call office, told them I was here, they said, that's why the online system rejected me, because my IP address was picked up, e.g. have to be in Oz to renew, so they gave me 2 years to renew when I returned, again single form, in person at registry, plus an eye test, only good for 5 years once you turn a certain age.

 

Cannot vote as a non resident.

 

No taxes or capital gains taxes payable if you buy shares, so that's an advantage, just make sure your shares are fully franked.

 

10% withholding tax with the banks, you have to let them know you are changing your residency to a non resident, and they will take out the tax on any interest earned automatically.

 

With banks, if you are transferring money or stuff like that, make sure you have a mobile number with them that you can receive the code.

 

Also helps to get a VPN and use where your from, e.g. Sydney, Brisbane etc, because so places might not let you into the site you want to go into.

 

That's about it.

 

Oh, if your looking to get the Age Pension after age 67, you have to be in Australia for 2 years before they will allow you to make it portable to Thailand, if your 65 and in Oz, you stay till 67, apply, get it, then you can come here. If your 67 and in Thailand, you have to return, apply and do the 2 year jail time before you can get it portable, i.e. after you convince them that you are back in Oz to stay, after the 2 years, well, you changed your mind.

 

Maintain an Oz address if you can as it makes things much easier.

 

EDIT: As you may or may not be aware, once you become a resident of Thailand, i.e. once you live here for 180 days or more, and you remit money to Thailand, you may have to declare it and pay tax on it. But that is something you will have to look into.

 

Apart from the above, enjoy your transition, just watch out for the many smiles, so to speak, that is, if you can see them through all of the smoke, now that we are entering the burning season.

 

 

 

[CaseyJones]

Apart from the official line, any hearsay stories of being treated differently by Australian authorities because you are non tax resident?

 

4 hours ago, 4MyEgo said:

Been here over a decade.

 

 

A great summary, thanks for putting it together.

 

I'm not in Thailand, but came here because its a very active forum with lots of knowledge and opinion! 

While local regulations may differ the general approach is the same.. Most of us try to do the right thing for our home country and the country we are staying in while we navigate the different rules to get the optimum result for ourselves.

We all know that its a fine balancing act that is getting harder. 

 

Not sure what motivates the authorities to action (pending tax legislation), and I am sure the topic "... is it better to have these grey nomads  confined to Australia or lying on a beach somewhere else" has been well discussed before so will not branch off here, just  curious what is in a Politician/Administrators  mind.;)

 

Thanks to all, . 

 

[KhunHeineken]

On 10/13/2024 at 11:15 PM, Lazybones said:

I'm 83yo and renewed  my licence online about 3 months ago but it appears to be for 3 years only

What state are you from?

 

If what you say is correct, all expats should convert their license to that state. 

 

In NSW, over 45 years of age means presenting for an eye sight test, and over 75 means going for a medical test.  

 

https://www.nsw.gov.au/driving-boating-and-transport/driver-and-rider-licences/health-conditions-and-disability/fitness-to-drive/medical-assessments

 

https://www.service.nsw.gov.au/transaction/renew-or-upgrade-a-nsw-driver-licence

 

 

[Lazybones]

On 10/13/2024 at 5:59 AM, KhunHeineken said:

Correct me if I am wrong, but I think age has something to do with renewing online. 

 

Once over a certain age, I don't think you can renew online, because you have to read the eye sight chart. 

 

On 10/16/2024 at 1:46 AM, KhunHeineken said:

What state are you from?

 

If what you say is correct, all expats should convert their license to that state. 

 

In NSW, over 45 years of age means presenting for an eye sight test, and over 75 means going for a medical test.  

 

https://www.nsw.gov.au/driving-boating-and-transport/driver-and-rider-licences/health-conditions-and-disability/fitness-to-drive/medical-assessments

 

https://www.service.nsw.gov.au/transaction/renew-or-upgrade-a-nsw-driver-licence

 

 

Victoria