Can any of you people explain to me:
If you RESIDE in Singapore, and EARN your income in Singapore why would you be liable to pay tax in Australia on that income?
Please quote the relevant section from the Income Tax Assessment Act to back up your claims. And remember, it is now Year 2006.
In fact, the Singapore based pilots will pay tax to the Singapore IRAS based on their income earned in Singapore. If they are smart (big call for some you lot who think AIPA and QANTAS should also wipe your bums for you) they could apply for the NOR (Not Ordinarily Resident) scheme where pre-assignment income (i.e. the 15 grand) would tax free.
Just declare yourself a 'non-resident for taxation purposes' in Australia in your final tax return and get up to Singapore and pay their very generous taxation rates on the income you earn in Singapore. It is that simple. Hundreds of thousands of Australians do it all over the world every year.
But, like I have asked. If you can show me how you would be sending money back to the ATO then I will stand corrected.
The basing is a crap idea that will piss off a lot of people for an insignifcant amount of savings (some 3.0 million per year, which is small change for a 12 billion dollar turnover company). Frankly, I think it is not worth the savings or the grief. But it is going to go ahead, so if you are in line for a two year soujorn to Singas you might as well make the most of it.
Chimbu - As an expat I reckon you could send your child to a public school in Singapore - you just have to pay $1000 per year per child because you are a foreigner in addition to the monthly fees (something like $35 per month).