Changes to foreign income exemption for Australians 2010

[Gas Bags]

Does anybody have any comments on the new taxation laws governing the foreign income tax exemption for Australians working overseas that came into effect this year?

It is my understanding that, except for a select few occupations (Aviation not being one of them), all Australian expats will now be liable for income tax to be paid to the Australian government on income earned overseas, at the equivelant Australian rates for each level income.

GB

[Taildragger67]

It is my understanding that

:eek:

Where did you see this?

[ozineurope]

Would be interested in this.

In Germany the Finanzamt takes into account your foreign income and this may place you on a higher tax bracket. There position is that it is not a tax on your overseas income, merely an 'adjustment' of the rate at which you pay tax on your German income! Perhaps Australia is doing the same?

[Baileys]

Is this the same issue...old thread...

http://www.pprune.org/middle-east/373750-expat-oz-pilots-taxed.html

[404 Titan]

Baileys

It is the same issue.

Gas Bags

This was closing a loophole some “Australian residents” were using to avoid paying Australian tax if they were working abroad for more than 90 days.

The same laws are still present for Australian Citizens that are "non-residents". You are classed a non-resident if you are not living in Australia for more than 183 days in a financial year and your normal place of abode is outside of Australia. There are a number of other items the ATO looks at as well to determine residency status. The ATO web sight has all the details.

[twinjet69]

.......unless the country you work in has a Tax Agreement with the ATO, ie.....PNG.

[Gas Bags]

Apologies one and all. I was unaware of the other thread (though I did suspect one would exist!)

404 Titan, I certainly hope you are right.

GB

[404 Titan]

twinjet69

Tax agreements make no difference to your residency status for tax purposes. If you are deemed a resident of Australia for tax purposes and also a resident for tax purposes in another country then you may have a problem regarding double taxation if an agreement doesn't exist.

Gas Bags

When it comes to Australian taxation matters and also being an accountant in a past life, I make it my business to know the taxation law inside out.