Accountant back in the nanny state is asking questions...

[ghworker2010]

here is the ATO's latest press release on the topic:

https://www.ato.gov.au/general/new-legislation/in-detail/direct-taxes/income-tax-for-individuals/non-residents/

[gregk0543]

The heart of the matter is whether you are a resident for tax purposes.

The simplest test for that is you spend 181 days a year in Australia.

There are other tests if you have a residence in Australia and your intention to return. If you go overseas for a couple of years with an intention to return you will still be a resident for tax purposes.

If you are a resident for tax purposes you need to pay tax on income anywhere in the world and get tax free threshold.

If you are not a resident for tax purposes you only need to pay tax on income earned in Australia but no tax free threshold

The tax free threshold is the difference between these two. Check out the ATO's website.

So go back for 181 days total every couple of years or get your assets out of australia if you cant hack the 30% tax.

[halloween]

In an Australian who did work in Thailand and is now retired here. Firstly the ATO and immigration are directly linked so they can see where you spend your time you have live in Australia for 6 months and 1 day every year to qualify as a resident for tax purposes. Your unlike to pay Australian tax if your only erring income here unless you have income from Sources in Australia like rental property which when then mostly be negative geared anyway. You will pay 15% withholding tax on any interest you earned in Australia. A good account who deals with expats knows this and a lot more. Pm me if you want a name.

Actually you need to be away from Oz for less than 6 months at a time

I go back every 5 1/2 months for a few days

No drama just collect my income and do a tax return each year

The only down side is I have to pay my medicare levy 2 1/2 % I think

If you are not in Oz for 181 days/financial year, you are not entitled to the $18200 tax free threshold. If you are claiming this you are committing tax fraud and they will find out. The penalties are severe, better to declare a mistake than wait until they catch you.

Edited September 7, 2015 by halloween

[Soutpeel]

Eventually, the ATO will catch up with you. Then, depending on how serious the situation is, they can either slap you on the wrist or make your life hell. And they can go back for as many years as they want to, demanding you produce documents of proof all the way.

myGov links together bodies such as Medicare, Centrelink, the ATO, Border Security etc. Big Brother is slowly getting it together.

Changing accountants is not an answer. They are agents, and as such will surrender you to the ATO in an eyeblink if the ATO calls on them.

I'm not an expert; however, I don't think your earnings in Thailand can be taxed in Australia. Anything you are earning in Australia will be, and I think if you are classed as non-resident you also have extra tax. Your accountant should be able to advise you.

Apologies if this post is unpalatable; however, one should never underestimate the capacity of the ATO for sheer bastardry.

Actually i think they can tax you on your earnings in Thailand and working here according to an Aussie mate of mine who worked here, believe they look at the amount you have earned in Thailand and the tax paid to the Thai tax man and if the amount of tax paid is less than what you would have paid in Aussie they want the difference

eg say the Thai tax man took 20% off you, but in Aussie the same amount of money who have resulted in you paying 30% to the Aussie taxman, they want the 10% off you

I also believe getting declared non resident in Aussie is very difficult if you still have a "presence" there ie you have bank accounts, properties etc they are of the opinon you are not non resident there

I am not an Aussie so only relating what Aussies i have worked with have told me