Australian Aged Pension

[Nemises]

You should try working as a suburban taxi driver. While working I do minimum 1000km per week, and the cruise control in the Prius has become my best friend.
And the bloody fines aren't even tax deductible.

Am enjoying following this thread, as very relevant to me. On a side note, I intend hiring a Prius when back in Oz soon. Curious to know if it's cruise control will still regulate my speed when descending a steep hill? In other words, does cruise control apply the brakes for you?

[halloween]

1 hour ago, Gregster said:

Am enjoying following this thread, as very relevant to me. On a side note, I intend hiring a Prius when back in Oz soon. Curious to know if it's cruise control will still regulate my speed when descending a steep hill? In other words, does cruise control apply the brakes for you?

Driving in the eastern suburbs of Brisbane, not much in the way of steep hills, but I think not. But when you back off the accelerator, the wheel drive motors switch to generator, feels much like engine braking in a petrol car. Very light brake application actually doesn't apply the brakes, it increases the battery recharge rate markedly slowing the vehicle, and the CC does this too.

I use the cruise a lot, even at 50km/h. Bloody radar vans are everywhere in Brissie.

Edited September 13, 2017 by halloween

[4MyEgo]

On 01/08/2017 at 11:13 PM, ELVIS123456 said:

There are some web services provided by ATO that can informally advise if you are a resident for tax purposes or not. Basically it boils down to where you consider your main home to be, and having 'evidence' to support that claim (if you are ever audited). Living in Thailand does not automatically mean that you are a non-resident for tax purposes. What matters is that you maintain a 'home' in Australia and consider it to be your home and therefore do things and have things in place to support that opinion.  CLink however takes a completely different approach, and they can determine that you have 'left' Australia extremely easily - in order to deny or reduce any payments that you may otherwise be able to receive. But unlike ATO, the CLink bitches have no hard and fast rules they must follow - it is all about what they consider to be the case in your situation.  

 

This is the ATO tool link.  There is no equivalent CLink tool - and they wont give you a definitve answer/\. How CLink works is that they have guidelines you can access (very complicated) and only if you apply for something, then and only then will they make a decision. So of course those of us not across things or up to date, will get screwed (yet again). ATO is much more 'open' (and honest) and they will give answers as best they can.

 

https://www.ato.gov.au/Calculators-and-tools/Host/?anchor=DORSLA&anchor=DORSLA/questions#DORSLA/questions

 

Here is one basic premise below - I didnt plan to stay in one place for two or more years.  Plan. 

 

 

You can use the tool above and go through many possible scenarios to see what outcome it gives.

 

Me  - I rented and moved house every few years - and visited other countries :)

And I kept a home in Australia (rented room from friend) and set that up as my home before I moved over - and kept licence, car rego, voting roll, bank accounts, super, medicare, and returned about once a year to visit relos/friends. I 'maintained' a home in Australia, and was on holidays overseas - moved around.

 

Right now we are going between the two countries - never more than a few months in Thailand at a time - while waiting for OAP qualification - and we are both doing a little part-time work to build up the savings - plus in a few years time the wife will get citizenship (hopefully), which will make things much easier in future and give us lots of options - including the wife able to get OAP in the future (15 years younger). Our stuff is all stored at the wife's family home - we bring anything extra wanted each trip.

 

And for all those who think Thailand is a pain and has problems living there - shut the phark up and stop whinging :)  This place sucks - I have been away a while and this place is so 'oppressive' - everythiung is so hard to do and it costs so much and most people are stressed out. The pharking Nanny state is totally over the top. I can tell you all about many many things where it is so much easier and better in Thailand to live, but l will say one. Today I got a speeding fine in the mail - $315 for going 10km (under 15) over the speed limit.  8190 baht for going 71 in a 60 zone at 6.30am when no one else was on the road, on a 2 lane pharking highway that should be 80ks, with a golf course on the left and the back fences (no fronts) of houses 30+ metres back on the right - years ago it was 90Ks then 80ks and now 60Ks (no deaths - ever).  Pharking ridiculous - the wife laid an egg !!  Sorry for that - but this place is just shiete - if the OAP was not worth so much, there is no way I would live here.  The roads are safe though :) - but expensive !!

 

Some good points Elvis, but not wanting to burst your bubble, what happens after Q2 when you answered no, I mean you sound like you have set it up, just the way it should be set up, i.e. moving around and not staying in one place for too long, and nothing is cut and dry, suffice to say when I read the legislation, it did say, an abode could mean a park, where a person usually stays, no doubt the ATO if it requires will ask questions, so how did you survive while you where living overseas, you know moving from country to country.

 

I think you should be ok, although leaving it to a government worker always sucks IMO.

 

As for the cost of living in the old country, yep, its pharked

[4MyEgo]

On 02/08/2017 at 11:30 AM, halloween said:

You should try working as a suburban taxi driver. While working I do minimum 1000km per week, and the cruise control in the Prius has become my best friend.

And the bloody fines aren't even tax deductible.

Taxi drivers have always been easy targets for the cops, been there, done that, and usually at the beginning of the shift, so your working Saturday night to pay for the bloody ticket, went through an amber light, pregnant woman in the back seat, guy behind me didn't appear be slowing down, so had to go it, and motorbike cops see's me going through a red as I turned right, try arguing with him, loser !!!

[4MyEgo]

On 02/08/2017 at 11:57 AM, ELVIS123456 said:

Cheers Moojar - I will try to keep things updated over the years (5).

I was in Thailand basically full-time for over 4 years and never had a problem with ATO/CLink etc.

Now it is about 50/50, but soon it will be 90/10 (90% Aust) and I am confident I will succeed in getting OAP approved when the eligible date arrives.

After the OAP is received I plan to be 2/98 (98% Thailand) and I wont maintain a 'home' in Aust anymore.  Trips back home will then only be for 'serious' matters like weddings, funerals, summons   Family and friends can come and have a holiday in Thailand - if they want.

But when I am very old increpid (85+?), the plan is to go back and 'finish off' in Aust. Both to be near family and because there is no doubt that Medicare is the way to go when you are in the 'end game'. Thailand medical is OK for 'normal' stuff, but when it comes to very old age care, it doesn't cut it at all.  My Mother is in her late 80s and the amount of care and tests and drugs she gets (all free) is amazing - now way I could get all of that in Thailand, or even afford to pay for what is available in Thailand, for say 10? years (no insurance coverage available when that old).  

Hey, I might be diagnosed with something very serious and have to stay here in Aust, or get something serious at 70 when I am in Thailand and have to come back to Aust.  No way anyone can plan fully for that, but we can plan for the 'options' we have available to us.  

Another reason I came back a little early (well over 2 years) is so that the wife can become an Aust citizen, which then gives her the options of Medicare if anything serious develops, and if she lives in Aust for 10 years (net) she can be eligible for the OAP.  It will be only 10/35s of the OAP but that is good money for an old Thai lady living by herself, as she will have some savings and own her own home.

 

Just remember to return before every 5 years and use your Medicare card, otherwise it gets cancelled and you have to apply for a new one when you return, with proof of living back in Oz, i.e. lease & utility bill in your name, etc etc

[4MyEgo]

On 02/08/2017 at 0:47 PM, Peterw42 said:

I never understand why people consider medical to be "free" in Australia. We pay a specific Tax for medical, Medicare levy, 2% of your income. Yes, its free for pensioners (after they payed all their life) and unemployed etc but for everyone else its not.

If I pay a percentage of my income in Thailand for medical coverage, I dont consider that free medical.

Hypothetically speaking, if you are in a public hospital under an emergency, its free, and or if a doctor needs to perform a procedure and he knows you haven't got private cover, he will see about putting you through the public system, again, its free, but if you visiting the doctor, specialist, etc etc, you get a rebate, so its not totally free, but better than a kick in the privates.

[4MyEgo]

On 03/08/2017 at 11:04 AM, moojar said:

Interesting Fairfax opinion piece - Michael Pascoe is a respected business journalist.  Not relevant to the pension, but relevant to some of our recent discussion:  

 

 

 

http://www.smh.com.au/business/property/skewering-expats--youll-lose-the-capital-gains-tax-exemption-on-your-home-20170802-gxnk9f.html

 

Some of you offshore for a while might be interested to read the comments after the article.

I can't see this happening, currently there is the 6 year rule, i.e. if you get an overseas job and rent your house, you are exempt for that 6 year period, so there is no capital gains tax for 6 years, and the clock can start and stop each time you return, say for example you got a job contract for 3 years, went abroad, returned after 3 years, stayed in Oz for a year, and went off abroad to another job for 3 years, it starts again, after you leave.

 

If you stay longer than the 6 year rule, you will pay capital gains tax.

 

Now capital gains tax is you are a non resident usually applied like this, i.e. the capital gains tax is applied from the date you departed Australia, I say that because I sold my place just after the 183 days and paid capital gains tax at non resident rates, however as the capital gain was apportioned, It wasn't that much Vs if I was a resident, so I can't see the government taking back to the date you purchased the property, as that would be CRAZY, and mean that they don't want the rest of the slave trade to wake up and discover what we have discovered, i.e. a life

[4MyEgo]

On 13/09/2017 at 8:35 PM, Gregster said:

Am enjoying following this thread, as very relevant to me. On a side note, I intend hiring a Prius when back in Oz soon. Curious to know if it's cruise control will still regulate my speed when descending a steep hill? In other words, does cruise control apply the brakes for you?

That's a NO, but it will keep the speed pegged at the speed limit you put in on, suffice to say if that doesn't work, use the breaks old son.

[Peterw42]

6 minutes ago, 4MyEgo said:

I can't see this happening, currently there is the 6 year rule, i.e. if you get an overseas job and rent your house, you are exempt for that 6 year period, so there is no capital gains tax for 6 years, and the clock can start and stop each time you return, say for example you got a job contract for 3 years, went abroad, returned after 3 years, stayed in Oz for a year, and went off abroad to another job for 3 years, it starts again, after you leave.

 

If you stay longer than the 6 year rule, you will pay capital gains tax.

 

Now capital gains tax is you are a non resident usually applied like this, i.e. the capital gains tax is applied from the date you departed Australia, I say that because I sold my place just after the 183 days and paid capital gains tax at non resident rates, however as the capital gain was apportioned, It wasn't that much Vs if I was a resident, so I can't see the government taking back to the date you purchased the property, as that would be CRAZY, and mean that they don't want the rest of the slave trade to wake up and discover what we have discovered, i.e. a life

As disscussed before, there is a big difference between working overseas (automatically a non resident) and being outside of Australia and retaining "resident for taxation purposes" status. 

If you keep resident status then there are not any capital gains exemptions but you keep the tax free threshhold etc. 

 

[giddyup]

48 minutes ago, 4MyEgo said:

Just remember to return before every 5 years and use your Medicare card, otherwise it gets cancelled and you have to apply for a new one when you return, with proof of living back in Oz, i.e. lease & utility bill in your name, etc etc

I've renewed my Medicare card twice from Thailand, never been back in 8 years. They just send a new one to a friends address every 5 years.

[4MyEgo]

1 hour ago, Peterw42 said:

If you keep resident status then there are not any capital gains exemptions but you keep the tax free threshhold etc. 

What you are saying that your opinion is that if you retain your residency as an Australian resident, there are no capital gains tax exemptions, but you retain the threshold, the latter I know of, however the 6 year rule has no CGT, refer to attached ATO link, I have known of this for years, and am not aware of any change to the legislation.

 

https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Your-main-residence/Treating-a-dwelling-as-your-main-residence-after-you-move-out/

[4MyEgo]

1 hour ago, giddyup said:

I've renewed my Medicare card twice from Thailand, never been back in 8 years. They just send a new one to a friends address every 5 years.

Ok, are you a resident or a non-resident, as my previous reply was for those who are non-residents for tax purposes

[ELVIS123456]

3 hours ago, 4MyEgo said:

Some good points Elvis, but not wanting to burst your bubble, what happens after Q2 when you answered no, I mean you sound like you have set it up, just the way it should be set up, i.e. moving around and not staying in one place for too long, and nothing is cut and dry, suffice to say when I read the legislation, it did say, an abode could mean a park, where a person usually stays, no doubt the ATO if it requires will ask questions, so how did you survive while you where living overseas, you know moving from country to country.

 

I think you should be ok, although leaving it to a government worker always sucks IMO.

 

As for the cost of living in the old country, yep, its pharked

After Q2 there is a series of further questions that can result in being 'resident' or 'non-resident' or 'unable to determine'.  I was highlighting that the basic premise to staying a resident for tax is to maintain a home back in Aust, and not plan to stay in any one place for more than 2 years.  If you do those two things then it is guaranteed.  After that it becomes more complicated, but it can be done. BUT if you stay away for more than 2 years and live in the same place for more than 2 years (or if that is your intention), you will probably be declared a non-resident for tax.  

 

But having said all that it is a 'self determined' system. When you do a tax return, it is up to you to determine your status. If you can justify making the decision you did, then you are OK even if they say your are wrong - no serious fines, but you may need too pay. Usually they negotiate an agreed outcome (from what I have heard/researched). It is only if they audit you that a govt worker does an assessment - or if you dont lodge a tax return at all and they find out about you taking money out of Super (or other tax affected investments). 

 

[ELVIS123456]

3 hours ago, 4MyEgo said:

Just remember to return before every 5 years and use your Medicare card, otherwise it gets cancelled and you have to apply for a new one when you return, with proof of living back in Oz, i.e. lease & utility bill in your name, etc etc

I will be returning once every year or so, and will maintain a home/residence and renew all licences etc etc. The long term plan is to return back (85-90) when I will need medicare for the daily pills and regular tests etc etc.

[moojar]

I haven't heard that the capital gains tax thing has even been introduced to the lower house, or if it has passed the senate - the government doesn't have the numbers there, and must negotiate everything through.  They've been a bit preoccupied lately with the acting PM / New Zealand citizen, and trying to resist same-sex marriage.  

 

But the CGT changes are policy - in this year's budget.  Read all about it here:  

http://www.expattaxes.com.au/2017-federal-budget-aussie-expats-clear-losers/

 

Quote

Continuing the Federal government’s trend of punitively targeting Aussie expats and non-resident Australians living and working overseas, the budget handed down last night, goes even further than before to punish Aussie sadly, clear losers under this budget!

 

[giddyup]

1 hour ago, 4MyEgo said:

Ok, are you a resident or a non-resident, as my previous reply was for those who are non-residents for tax purposes

As I haven't been back in 8 years I'm sure they see me as a non-resident who doesn't (need to) pay tax.

[tryasimight]

On 8/1/2017 at 10:14 AM, Will27 said:

TBH, I'm surprised that the letter saying you owed money didn't say why or where it was from.

They usually state from what year and how it occurred.

 

Yep, they don't chase small debts, particularly overseas. But if you lodge tax returns and get a credit, they will take it from that.

 

I would've done what you did though, just paid it. Although I still would've asked where it originated from.

Nigeria?

[4MyEgo]

24 minutes ago, giddyup said:

As I haven't been back in 8 years I'm sure they see me as a non-resident who doesn't (need to) pay tax.

I would think so too, sounds odd, because someone told me they had their Medicare card cancelled after 10 years, and my own enquires found it to be 5 years, suffice to say, sounds like your on borrowed time, tick tock, tick tock, 2 years to go

[giddyup]

32 minutes ago, 4MyEgo said:

I would think so too, sounds odd, because someone told me they had their Medicare card cancelled after 10 years, and my own enquires found it to be 5 years, suffice to say, sounds like your on borrowed time, tick tock, tick tock, 2 years to go

Would a trip back to Oz with a couple of doctors visits there keep me "on the books"?

[halloween]

2 minutes ago, giddyup said:

Would a trip back to Oz with a couple of doctors visits there keep me "on the books"?

Can't hurt. I'm planning on 3-4 weeks a year in Oz, with a bit of light work, and working the Medicare card hard.

[giddyup]

Just now, halloween said:

Can't hurt. I'm planning on 3-4 weeks a year in Oz, with a bit of light work, and working the Medicare card hard.

I only want to go if it's worthwhile, ie keep my medicare card valid.

[4MyEgo]

2 hours ago, moojar said:

I haven't heard that the capital gains tax thing has even been introduced to the lower house, or if it has passed the senate - the government doesn't have the numbers there, and must negotiate everything through.  They've been a bit preoccupied lately with the acting PM / New Zealand citizen, and trying to resist same-sex marriage.  

 

But the CGT changes are policy - in this year's budget.  Read all about it here:  

http://www.expattaxes.com.au/2017-federal-budget-aussie-expats-clear-losers/

 

 

Interesting read, especially budget paper 2, page 27 at the bottom where they are going to take away the 6 year rule which will affect a lot of Xpats avoiding capital gains tax, fortunately for me, I sold my place, 6 months after living here, just weighing it all up as a non resident told me that it wasn't worth holding onto, suffice to say I have invested the money in the ASX and don't pay any tax or capital gains tax.

 

The irony of it all, we want your money, so stick it in the stock exchange and we won't tax you or apply capital gains tax, or if you invest it the bank, we will only tax you 10%, but if you hold property we will farken bend you over big time, suffice to say, they did me a huge favour as it stands, as I would have never made the amount of money I have been making from the stock market, if I held onto property back in Oz, "so take that Australian Governments", yes its a middle finger, both hands 555

[4MyEgo]

16 minutes ago, giddyup said:

Would a trip back to Oz with a couple of doctors visits there keep me "on the books"?

I would suggest you look into the Medicare website, there is an area that they allow you to see things regarding your Medicare history etc etc and once in, you can see when your card expiry date ceases, yes, you already know that, but on the site, if they have cancelled it, it won;t be showing the date you already know.

 

A trip back to see a couple of Dr's shouldn't hurt, but I would see one 1st, and see if they reimburse your account first, usually overnight, and if successful, see then next Dr and so on and so forth.

[giddyup]

Just now, 4MyEgo said:

I would suggest you look into the Medicare website, there is an area that they allow you to see things regarding your Medicare history etc etc and once in, you can see when your card expiry date ceases, yes, you already know that, but on the site, if they have cancelled it, it won;t be showing the date you already know.

 

A trip back to see a couple of Dr's shouldn't hurt, but I would see one 1st, and see if they reimburse your account first, usually overnight, and if successful, see then next Dr and so on and so forth.

Thanks.

[halloween]

1 minute ago, giddyup said:

Thanks.

If you take medication, it is possible to get a script for 6 months of it at the one time. Tell your doctor you are leaving the country and it shouldn't be a problem. Even better, it works out considerably cheaper, as there is only one chemist's prescription fee.

 

I haven't had a problem with customs while leaving, but always have the paperwork with you.

[giddyup]

Just now, halloween said:

If you take medication, it is possible to get a script for 6 months of it at the one time. Tell your doctor you are leaving the country and it shouldn't be a problem. Even better, it works out considerably cheaper, as there is only one chemist's prescription fee.

 

I haven't had a problem with customs while leaving, but always have the paperwork with you.

The only medication I take is for my BP and gout, both of which cost very little in Thailand.

[opalred]

i was self employed and employed many people in my life

my father a farmer and worked hard all his life 

on retirement received nothing not even medical 

even had to pay nursing home till his death

i saw what was happening

over years coming up to retirement gradually went broke 

my children over the years got a lot of 9000$ gifts

14yrs retirement have great wife and house here 

my children send money if needed

you cannot take your money with you 

but you can plan for a happy life

[4MyEgo]

12 hours ago, giddyup said:

I only want to go if it's worthwhile, ie keep my medicare card valid.

If you are not registered online to check your Medicare account, go to this website, on the left click onto Keeping up to date with Medicare and have a read, you might end up saving the cost to return to Australia, before you decide to go, that is.

 

At least that way, you can decide whether to book your tickets or not when the time comes, I checked mine before I left and all was as my card was, i.e. the date of expiry didn't show cancelled or invalid or anything like that, so do it this way and you could either save $'s on not going, or going and making your card work for another 5 years after you have seen your Dr.

 

https://www.humanservices.gov.au/individuals/medicare

[4MyEgo]

12 hours ago, halloween said:

If you take medication, it is possible to get a script for 6 months of it at the one time. Tell your doctor you are leaving the country and it shouldn't be a problem. Even better, it works out considerably cheaper, as there is only one chemist's prescription fee.

 

I haven't had a problem with customs while leaving, but always have the paperwork with you.

My Doctor give me a script for a year, then I'm off to Chemist Warehouse, cheap as, however I have read somewhere here that you are not allowed to take so much with you, I have a letter from my Dr also, so if I ever get pulled up, I would just play dumb and leave the rest to the Mrs to serve them, "no fear"

 

[4MyEgo]

12 hours ago, giddyup said:

The only medication I take is for my BP and gout, both of which cost very little in Thailand.

My meds are like $60 here compared to about $5 in Australia, and that was just the Lipitor ones