Read the post again. You misunderstood. Example: Say I am 66 years of age and looking to retire next year at 67 years of age. I transfer the lump sum of money to Thailand this year, because I will be deemed a non resident of Thailand for tax purposes. I then retire to Thailand next year. If I move the same amount of money in a year that I am in Thailand over 180 days it can be taxed. Myself, and some Aussie friends here, and I suggest many other Australian expats, have never paid a cent in non resident tax. This is because I still have a domicile (property) in Australia, a car, utility bills, club membership, family etc etc. The ATO can not prove that I have no intention of returning to Australia because it's difficult to prove one's state of mind, and I have basically left my life in Australia intact, which tends to prove I intend returning. This has been tested and the ATO has lost in Court, so we receive no nasty letters from the ATO. The 183 days will close this loophole. Like the guy in the video explains, Australia will have first taxing rights, and Thailand will credit you for any tax paid in Australia. That's how the DTA works. See the above. It all depends on one's personal circumstances. Many people want to escape Australia's tax system, so prefer to be a non resident for tax purposes. They try many dodgy ways to claim they are a non resident for tax purposes, yet reside in Australia. The 183 days will scoop these people up as well. Your average retired Aussie expat would most likely prefer to remain an Australian resident for tax purposes to avail themselves of the tax free threshold and subsequent tax brackets, rather than non resident tax of 30% from $0 to $135,000, If you want to remain an an Australian tax resident, in the future, it will mean doing 6 weeks in Australia and meeting two of the four factor tests. One is super easy, right to reside, which you get from your Aussie passport. Or, simply do 183 days in Australia each year.
Create an account or sign in to comment