Australian tax question

[Kenny202]

Have some funds invested in Australia. I assume as I've been out of the country more than 6 months and don't own property I'll be up for full tax 33% on the interest?

If I don't fill out a tax return in the coming years how long will it be before they demand I file or do they simply take the tax from my bank account or does the bank with hold?

[wprime]

The distinction between taxable and non-taxable residency isn't so fixed. If you have intention to return to Australia you're still a resident for tax purposes and Australia can back tax you on your global incomes upon returning to Australia. If you have permanently left Australia then you're a non-resident for tax purposes and non-resident rules apply.

Investment income isn't taxed at the full rate for non-residents, it's taxed at an investment rate of 10%. You'll need to inform anyone paying you investment income that you're not a taxable resident so that they can withhold the 10%. As long as they're withholding this amount you do not need to declare it on your tax return. If you fail to inform them of this and you have not supplied them with you TFN, they will withhold 48.5%. If you have supplied them with your TFN then the ATO will go after you if you don't file your tax return.

This is just my opinion based on personal experience, you should contact your tax accountant to confirm anything I've said.

Edited March 11, 2016 by wprime

[nev]

I do mine on line, you can do a self return from Thailand, easy to do fill out add your distributions to your tax return and include any other interest earned and other income and you will get a tax return nominate a bank account with a bsb they will pay it direct into your account .

[Kenny202]

The distinction between taxable and non-taxable residency isn't so fixed. If you have intention to return to Australia you're still a resident for tax purposes and Australia can back tax you on your global incomes upon returning to Australia. If you have permanently left Australia then you're a non-resident for tax purposes and non-resident rules apply.

Investment income isn't taxed at the full rate for non-residents, it's taxed at an investment rate of 10%. You'll need to inform anyone paying you investment income that you're not a taxable resident so that they can withhold the 10%. As long as they're withholding this amount you do not need to declare it on your tax return. If you fail to inform them of this and you have not supplied them with you TFN, they will withhold 48.5%. If you have supplied them with your TFN then the ATO will go after you if you don't file your tax return.

This is just my opinion based on personal experience, you should contact your tax accountant to confirm anything I've said.

I thought after 6 months you were considered a non resident unless you had a property in Ur name ie address. I don't and won't have any global income. So in your opinion I can simply tell them I have an intention to return? I've been here over a year now...and while at this stage I intend to live here forever, I guess they don't know that and I could be on extended holiday I spose. By the way, I won't be earning any other income in Australia or abroad and the interest I earn will be well and truly under the tax free threshold. So how does the government deem if I'm a non resident or not? There must be some guideline apart from my say so?

[Kenny202]

I do mine on line, you can do a self return from Thailand, easy to do fill out add your distributions to your tax return and include any other interest earned and other income and you will get a tax return nominate a bank account with a bsb they will pay it direct into your account .

I'm not trying to find out how to file a tax return. I'm trying to minimize my tax or at the very least defer it. Before anyone jumps down my throat, I worked all my life for a wage and have already paid tax on my savings. Living here I also won't be eligible for the pension. Psses me off I have to pay tax (again!) On the piddling amount of interest I earn when I don't even live in the country and receive any of the benefits of the tax I pay ie use of roads, hospitals etc

[CharlieH]

Wrong forum

MOVED to "home country"