Australian Tax and Touring Pilots/Engineers

[taxying]

I know this one got flogged to death this time last year BUT regarding the new ATO amendments to section 23AG.

Given that this 2002/2003 year is the first effective tax year for this ruling; has anyone had any new readings or dealings with this. I am referring of course , to pilots and engineers who are doing equal time tours internationally (eg 6 weeks on 6 off) and spending their 6 weeks off in Australia.

Any new developments ?

Would appreciate your comments.

[Steve76]

Just interested in keeping this one alive....
So who's got the goss?

[gulliBell]

I had a Private Tax Ruling issued on this question 2 years ago. I am an Australian Resident for tax purposes on equal time tours and the end result is I don't have to pay Australian tax on foreign income, although it still has to be declared in my annual tax return. Foreign income does however have an affect on my marginal rate of tax for other income derived in Australia (eg rental income, interest, etc). Basically I lose my tax free threshold and have an average rate of tax applied to all my Australian derived income.

[taxying]

gulliBell

….you say you had a Private Tax Ruling issued on this question 2 years ago. That would make your ruling say Sept 2001 ??? The amendments came in to effect 17 July 2002. I am not sure how long before implementation that this amendment to 23AG was first put forward……so does your private ruling take in to account what is referred to as TR 96/15 affecting section 23AG.

My understanding is that your situation is correct prior to this amendment. After the amendment , I am having difficulty reconciling the ATO’s view that time off in Australia beyond 61 days per year is considered excessive and therefore makes your foreign sourced income taxable.

I am still very confused with the whole issue… however thanks for your comments. I hope you are right and I am wrong (and still confused). That is why I am interested to hear from people on how they have actually been treated this last 2002/2003 tax filing year.

I am or rather was non resident (so declared by ATO) but even that seems to be in jeopardy due to changing rules over time. I think I may even have entered the twilight zone of now being neither resident or non resident..

I have spent some signifigant bucks with big time accountancy firms and am still no clearer.

On of my compatriots suggested I seek a private ruling but am not yet ready for that.

[Time Out]

taxying (and being taxed!! - sorry couldn't help myself)

On a more serious note, I strongly suggest you get advice from a specialist taxation law firm. Not intending to criticise accountants, who do a great job, but with new issues and tricky matters, you can't beat taxation lawyers.

Good luck.