Go Back  PPRuNe Forums > PPRuNe Worldwide > Australia, New Zealand & the Pacific
Reload this Page >

Proposed Taxation Changes to Residency Rules

Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Proposed Taxation Changes to Residency Rules

Old 16th Aug 2021, 02:16
  #21 (permalink)  
 
Join Date: Jun 2002
Location: Eden Valley
Posts: 1,920
Sorry, the whole idea of moving abroad was to self-fund a retirement. Probably the same objective as you? Some of us unlucky not to have worked for the state sponsored and protected domestic and international airline.

Clean up on Medicare? I paid $1000 AUD per month ( small family ) on top of company health insurance abroad. I did use Australian medical services, however, I paid for them. Returning home I now have private health insurance.

As an expat, many pay tax on what locals do not. Including their family home, more CGT, flat tax rate on earning inside Australia etc. That all said, putting number on it, I think one year abroad as a Captain was worth three to three and half years work as a domestic CAPT back home in Australia. So I'm a self-funded retiree now after a pretty grim 2001.
Gnadenburg is online now  
Old 16th Aug 2021, 02:58
  #22 (permalink)  
 
Join Date: Jun 2006
Location: 3rd rock from the sun
Posts: 1,895
Originally Posted by neville_nobody View Post
Neither of which expats will pay. I agree that constant rule changing is unfair, however the whole attitude of cleaning up overseas then retiring in Australia and milking medicare for all its worth is a joke. Meanwhile the higher earning residents keep on ponying up to fund the whole thing.
Don't be jealous
morno is online now  
Old 16th Aug 2021, 06:10
  #23 (permalink)  
 
Join Date: Jul 2003
Location: Somewhere
Posts: 2,690
Don't be jealous
Not bothered either way, however you need to accept that by a world standard Australia has very generous social benefits to the average punter, the flipside to that is everyone needs to contribute financially. I would suggest that at a government level expats in general might be seen as gilding the lilly a bit too much hence the crackdown.
neville_nobody is offline  
Old 16th Aug 2021, 12:12
  #24 (permalink)  
swh

Eidolon
 
Join Date: May 2001
Location: Some hole
Posts: 2,062
Originally Posted by neville_nobody View Post
Not bothered either way, however you need to accept that by a world standard Australia has very generous social benefits to the average punter, the flipside to that is everyone needs to contribute financially. I would suggest that at a government level expats in general might be seen as gilding the lilly a bit too much hence the crackdown.
One only stops paying tax when you die, if you retire in Australia you will pay Australian tax. Most expats pay some tax in Australia even when overseas, and get nothing for it.
swh is offline  
Old 17th Aug 2021, 08:14
  #25 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,285
The pilots most affected would be those with an Australian base, such as Cathay and Air Niugini, or those on a reverse roster such as China Southern. Any pilot on a commuting contract will probably get caught up in the net, even those on non commuting contracts who string days off and annual leave together, and use staff travel to enable an extended stay at home will need to be very careful.

Basically you will be able to get away with three breaks of a fortnight each annually, if you want to play it safe.

Retiring back in Australia would still be be an attractive option as you would be on a lower income and paying resident tax rates while enjoying Medicare and a seniors card. A decent climate, good infrastructure and plenty to do could make it worthwhile going back into the system. Coming out even would be acceptable to most people, compared to being milked dry for little in return.

Someone working in Qatar for example, whose made his wedge, might not mind paying a few thousand a year to retire in Noosa or on the Gold Coast. Cheap options are available in SE Asia as well, many Australians leave home to retire in these places and enjoy a higher standard of living at a lower cost than they would have in their own country.
krismiler is offline  
Old 17th Aug 2021, 21:19
  #26 (permalink)  
 
Join Date: Jun 2002
Location: Eden Valley
Posts: 1,920
Personally Kris, if I thought slogging it out abroad, would mean relying on a Seniors Card, Medicare and my social network being old guys on Asian beaches paying for cheap sex, I would have bought a 7-11 in 2001. That's a really grim retirement ambition.
Gnadenburg is online now  
Old 17th Aug 2021, 22:35
  #27 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,285
Have a look at the cost of private health insurance at 65 and 75 years old and you will see why you would want to be back in the government health system.

Expat packages aren’t what they used to be and unless you were a CX “A” scaler or spent a long time in the sandpit, retirement options might be scaled back a bit.

Each to his own but I would prefer hot Asian LBFMs over Australian grannies any day. In Thailand, $500 a month would get you a young, attractive full time live in girlfriend who does the housework and shopping.
krismiler is offline  
Old 18th Aug 2021, 02:18
  #28 (permalink)  
 
Join Date: Jun 2002
Location: Eden Valley
Posts: 1,920
From what I've seen in travels, you seemed to have really bummed out on your retirement.
Gnadenburg is online now  
Old 18th Aug 2021, 08:54
  #29 (permalink)  
swh

Eidolon
 
Join Date: May 2001
Location: Some hole
Posts: 2,062
Originally Posted by krismiler View Post
The pilots most affected would be those with an Australian base, such as Cathay and Air Niugini, or those on a reverse roster such as China Southern.
Kris, The Cathay pilots based in Australia were employed by an Australian company under an Australian EBA, the company that employed them paid Australian tax, the employees paid both Australian tax and Hong Kong income tax. The Cathay Australian base is closed (also most other bases around the world), no more pilots based in Australia. China Southern had pilots based in Australia, their contracts were terminated a long time ago right at the start of COVID, they paid tax in China, under the double tax agreement between China and Australia they did not pay income tax in Australia as they had a certificate that tax was paid in China.
swh is offline  
Old 18th Aug 2021, 10:01
  #30 (permalink)  
 
Join Date: Jul 2010
Location: Asia
Posts: 1,285
Understood that COVID has changed many things regarding employment and there may be differences once relative normality returns. The ATO may decide Australian tax is still due and that foreign tax paid may only be offset against the amount, ie you effectively pay Oz tax at full rate.

Pilots working in the Pacific area for airlines such as Fiji Airways, Air Naru, Solomon Airlines etc will likely be affected but the numbers involved would be quite low.

Whilst bases may be off the table for a while to come, anyone stringing leave and off days together for a 10-14 day trip home every couple of months needs to watch out.
krismiler is offline  
Old 26th Aug 2021, 06:54
  #31 (permalink)  
 
Join Date: Apr 2010
Location: home
Posts: 399
Originally Posted by Gnadenburg View Post

As should be telling from the lack of interest in this thread, it should be apparent nobody gives a rats a$$ about expatriate pilots and taxation. Judging by the lack of empathy of many Australians at the stress of repatriating as a redundant Cathay Group pilot, I'd suggest be prepared for a very strange and selfish country on return. It's insular and shallow, at the same time selfish and spoilt.
So you went overseas, chasing the pot of gold, which as is quite often the case, turned out to be a barrel of 5hit and you're annoyed that the average Australian isn't crying a river for you?
Can I have some of what you're smoking
airdualbleedfault is offline  
Old 27th Aug 2021, 23:37
  #32 (permalink)  
 
Join Date: Jun 2002
Location: Eden Valley
Posts: 1,920
Originally Posted by airdualbleedfault View Post
So you went overseas, chasing the pot of gold, which as is quite often the case, turned out to be a barrel of 5hit and you're annoyed that the average Australian isn't crying a river for you?
Can I have some of what you're smoking
Can I have some of what you're smoking? Nah, it will just make you nasty, bitter and twisted.

You are a good case in point for the original poster. My reference was clearly toward the dismal attitude many fellow Australians had for people stuck overseas. Many of these fellow Australians were destitute and in trouble. If Australians take satisfaction in the unfortunate plight of expatriates, why would you expect a rational attitude to expatriate taxation? Many would be happy to see expatriates pay high levels of tax than would sign the petition!

It may not have worked out for you, however, expatriate flying was a pot of gold for myself and many others. I'm grateful many of my good friends who had to leave Australia, took advantage of opportunities financial and professional. A year abroad, once a Captain, was worth three years at least, as a Domestic Captain in Australia. So not much more than a decade abroad, you can be as well set up as you would a lifetime in Australia flying shark patrol MEL-SYD. It's nice seeing great people sitting out COVID comfortably and a surprising number of them retiring in their late forties. Would they do it again? The adventures and rich experiences of expatriate life? Probably without a doubt when confronting the miserable attitudes of some Aussies like yourself.

Last edited by Gnadenburg; 28th Aug 2021 at 02:56.
Gnadenburg is online now  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.