Expat Pilots to be Taxed?
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Expat Pilots to be Taxed?
Income tricks of the rich targeted | The Australian
"Currently, certain foreign employment income earned by Australians working overseas for 91 days or more is exempt from income tax to remove the risk of taxing the same income twice.
However, the Government noted that Australians earning income overseas generally paid little tax to foreign governments. So from July 1, those earning income offshore will be entitled to a tax offset for any income tax paid overseas, but will still be liable for Australian income tax."
"Currently, certain foreign employment income earned by Australians working overseas for 91 days or more is exempt from income tax to remove the risk of taxing the same income twice.
However, the Government noted that Australians earning income overseas generally paid little tax to foreign governments. So from July 1, those earning income offshore will be entitled to a tax offset for any income tax paid overseas, but will still be liable for Australian income tax."
Join Date: Dec 2005
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Australian residents or expatriates
After skimming through the Australian Treasury release at Better targeting the income tax exemption for Australians working overseas ,
I think the new laws are aimed at Australian Residents earning foreign income, not expatriates.
I'll nervously continue investigating!
lmh
I think the new laws are aimed at Australian Residents earning foreign income, not expatriates.
I'll nervously continue investigating!
lmh
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luvmuhud
I wish you were right but I've got a horrible feeling.
There'll be an awful lot of nervous HK Chinese with Aussie citizenship if it is really their intention to tax non-residents.
Judging by the amount they think they'll recoup, it seems we're
ed.
There'll be an awful lot of nervous HK Chinese with Aussie citizenship if it is really their intention to tax non-residents.
Judging by the amount they think they'll recoup, it seems we're
ed.
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Have a look at the website link. The word document at the bottom of the web page is the amendment for Senate approval, and it refers to a change to the 23AG ruling......I don't believe this will have any ramifications to Australians who are non-residents for tax purposes. Obviously, there'd be a fairly rapid flood of expats back to Aus if we suddenly found ourselves paying Aussie tax rates. Hopefully this won't happen.
lmh
lmh
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Tax will only apply to 'residents'. To be deemed resident you must meet requirments of days, intent etc under ATO guidlines. Most people living full time in HKG do not need to waste energy even thinking about this. Examples of residents and non-residents
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ATO Tax
What the budget measure kills are Australian residents who are sent O/S by their employer for a period greater than 90 days but not long enough to claim themselves non-resident under an old agreement where the employer states they are going to benefit from their employees time away, so the ATO agrees to this, the resident goes away with no tax. Generally, at most countries where they end up (UK) tax rules mean they don't pay tax there either so walk away with lots in their pocket.
The ATO is simply stopping this sort of abuse, if you go you'll now pay oz tax with a credit for any foreign tax paid. I had a mate who went to London for 6 mths under said agreement earnt 150K and paid no tax in either country legally!
The ATO is simply stopping this sort of abuse, if you go you'll now pay oz tax with a credit for any foreign tax paid. I had a mate who went to London for 6 mths under said agreement earnt 150K and paid no tax in either country legally!
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Nah
Give them all another $900 bucks, stimulate the economy.
How generous these pinko,lefty,trendy,bedwetter LABOR
morons are, this guvmint is doing more damage than Gough.
It will take generations of expat taxpayers to sort this mess.
Sad thing is, the pensioners, dole bludgers, and half the
population that work for the 3 tiers of guvmint will re-elect
these idiots again and again.
LABOR is already talking up an early election, this will give
them a mandate to crank up expat tax, and further screw
anyone with the temerity to work or save. The lucky country
my arse, only for the LABOR followers, God help expats and
all that provide for themselves.
Give them all another $900 bucks, stimulate the economy.
How generous these pinko,lefty,trendy,bedwetter LABOR
morons are, this guvmint is doing more damage than Gough.
It will take generations of expat taxpayers to sort this mess.
Sad thing is, the pensioners, dole bludgers, and half the
population that work for the 3 tiers of guvmint will re-elect
these idiots again and again.
LABOR is already talking up an early election, this will give
them a mandate to crank up expat tax, and further screw
anyone with the temerity to work or save. The lucky country
my arse, only for the LABOR followers, God help expats and
all that provide for themselves.
If you are a non-resident this won't affect you. Yet, why are so many expats in Hong Kong maintaining Australian residency status ? I see little advantage in it.
From Steve Douglas whose head you would recognize from watching the footy on Australia TV.
From Steve Douglas whose head you would recognize from watching the footy on Australia TV.
Australian Treasurer Wayne Swan announced in his Budget on the 12th May 2009 that a number of anti tax avoidance measures would be introduced including changes to the Foreign Income rules.
The proposed changes scrap the current tax exemption on Foreign income by Australian residents doing offshore work stints of 90 dyas or more, where they are exempt from tax on this income provided they pay tax in the country of earning.
The new changes will make these earnings taxable in Australia with a full tax credit for any tax paid in the offshore country.
This has caused a stir in the Expatriate community as many Australians living and working aborad feared that this may mean their offshore earnings may now be taxable.
This is not the case, as the changes only apply to people living in Australia and venturing overseas on short term work assignments.
Australians genuinely living overseas on a long term basis are classed usually as Non Residents for tax purposes and therefor the changes to the exempt income rules will not affect them as they did not apply in the first case.
For many Australians currently commuting for work offshore, there may be motivation for them the move permanently overseas in order to not have there incomes taxed in Australia under the new rules.
The proposed changes scrap the current tax exemption on Foreign income by Australian residents doing offshore work stints of 90 dyas or more, where they are exempt from tax on this income provided they pay tax in the country of earning.
The new changes will make these earnings taxable in Australia with a full tax credit for any tax paid in the offshore country.
This has caused a stir in the Expatriate community as many Australians living and working aborad feared that this may mean their offshore earnings may now be taxable.
This is not the case, as the changes only apply to people living in Australia and venturing overseas on short term work assignments.
Australians genuinely living overseas on a long term basis are classed usually as Non Residents for tax purposes and therefor the changes to the exempt income rules will not affect them as they did not apply in the first case.
For many Australians currently commuting for work offshore, there may be motivation for them the move permanently overseas in order to not have there incomes taxed in Australia under the new rules.
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T101
"Congratulations! What a country..."
They do some stupid things admittedly.
They seem to think everyone on earth wants to go to Australia, so they have demanded visa's from residents of most countries for visitors. Unfortunately every Australian visiting most countries now, is required to have a visa. Don't you think they have shot themselves in the foot with this one?
"Congratulations! What a country..."
They do some stupid things admittedly.
They seem to think everyone on earth wants to go to Australia, so they have demanded visa's from residents of most countries for visitors. Unfortunately every Australian visiting most countries now, is required to have a visa. Don't you think they have shot themselves in the foot with this one?
air pressure & simmer
Sorry but as a former accountant I see no sinister plot by this government to introduce world wide tax for Australian citizens. All they are doing is essentially the closing of a tax loophole. This exemption was originally allowed only because it was assumed that the tax payer would be paying the tax on foreign earned income overseas. As it turned out most weren’t as the foreign tax authorities were generally considering the Australians as non resident for tax purposes. End result was no tax was being paid anywhere.
Sorry but as a former accountant I see no sinister plot by this government to introduce world wide tax for Australian citizens. All they are doing is essentially the closing of a tax loophole. This exemption was originally allowed only because it was assumed that the tax payer would be paying the tax on foreign earned income overseas. As it turned out most weren’t as the foreign tax authorities were generally considering the Australians as non resident for tax purposes. End result was no tax was being paid anywhere.
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Don't want to throw kero on this potential fire, but it would also be unwise to think it'll be ok. The (new) policy is still being drafted and I wouldn't underestimate these Labor S-o-B's.
If they go down the U.S. IRS path, sh!ts'll be trumps.
Forget about the 23AG & 91/180 day rules, (in all likelyhood these will change/disappear) only when the legislation is available for scrutiny will we know what we're up against.
If they go down the U.S. IRS path, sh!ts'll be trumps.
Forget about the 23AG & 91/180 day rules, (in all likelyhood these will change/disappear) only when the legislation is available for scrutiny will we know what we're up against.