New Tax Laws Australians Over Seas

[bluesmith]

Hi Guys this will kill a lot of us trying to make a dollar over seas any body have any news on this 1.

Foreign employment income exemption changes

Currently, Australians working overseas for over 90 consecutive days are eligible for a general exemption which means they do not pay any Australian income tax on their foreign employment income.

From 1 July 2009, the foreign employment income exemption will only be available for income earned:

• as an aid or charitable worker employed by a recognised non-government organisation; or

• as a government aid worker; or

• as a specified government employee (for example, defence and police force personnel deployed overseas).

Income earned by an individual employed on an overseas project approved by the Minister for Trade as being in the national interest will remain exempt.

A tax offset will be available for any foreign tax paid on the foreign employment income.

Source: Budget Papers No 2, p 19; Treasurer's Press Release No 4, 12 May 2009.

[tuky]

Hmmm.

This only applies to folks who still reside in Aust right?

As a non resident I do hope there is nothing to worry about, because there is no hope in hel_l I will pay Aussie tax unless I am actually living and working there.

I haven't filed a tax return since 2000, and will not either.

If this is an attempt to stop the so called 'brain drain' then they need to do something about personal income tax as a resident to entice people to come home rather than tax folks who are only trying to do the best they can.

If I was living in Aust I would be in the highest tax bracket, what is that now? 48%? + 10% GST + whatever new taxes they have. Not worth ones while living and/or working in Aust. (IMHO)

[MJP]

Hi Guys this will kill a lot of us trying to make a dollar over seas any body have any news on this 1.

Foreign employment income exemption changes

Currently, Australians working overseas for over 90 consecutive days are eligible for a general exemption which means they do not pay any Australian income tax on their foreign employment income.

From 1 July 2009, the foreign employment income exemption will only be available for income earned:

• as an aid or charitable worker employed by a recognised non-government organisation; or

• as a government aid worker; or

• as a specified government employee (for example, defence and police force personnel deployed overseas).

Income earned by an individual employed on an overseas project approved by the Minister for Trade as being in the national interest will remain exempt.

A tax offset will be available for any foreign tax paid on the foreign employment income.

Source: Budget Papers No 2, p 19; Treasurer's Press Release No 4, 12 May 2009.

NGO's and Government's. Hmmm . . . How angry is it possible to get?

This is protectionism.

Everything now favours finance and government. Both are criminal organisations the world over.

The NGO thing is just to dress it up all cuddly and fluffy.

Tax strike.

[bluesmith]

Hmmm.

This only applies to folks who still reside in Aust right?

As a non resident I do hope there is nothing to worry about, because there is no hope in hel_l I will pay Aussie tax unless I am actually living and working there.

I haven't filed a tax return since 2000, and will not either.

If this is an attempt to stop the so called 'brain drain' then they need to do something about personal income tax as a resident to entice people to come home rather than tax folks who are only trying to do the best they can.

If I was living in Aust I would be in the highest tax bracket, what is that now? 48%? + 10% GST + whatever new taxes they have. Not worth ones while living and/or working in Aust. (IMHO)

Lets hope you are right as long as we have no comitments with Australia eg house ,car , bank account , pension (67 years old now).

But I would not like a bill hanging over my head if I had to return 1 day to live there as you never know when they may change the laws in LOS

[wamberal]

Any Australian who leaves Australia permanently to live in another country is not liable for Australian tax, except on Australian sourced income - and then the rates are pretty low.

FYI, my wife and I are living in Australia, and have a combined income of about $120,000 from our retirement assets, and we pay about $8,000 income tax between us, because most of the income is from dividends from Australian companies, in which case the companies tax they pay is taken into account in determining our tax.