Australian taxes... Need help
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Australian taxes... Need help
Hey there cx pilots...
I am a pilot for HAWAIIAN airlines and am married to an Aussie chick.
We are relocating to Sydney and I am going to commute to work...
Can anybody help me out with tax questions? I need an Australian pilot who
Commutes to hkg for work, in other words, is raising his or her family in Oz...
If u could pm me to start this conversation it would be a huge help...
Thanks
I am a pilot for HAWAIIAN airlines and am married to an Aussie chick.
We are relocating to Sydney and I am going to commute to work...
Can anybody help me out with tax questions? I need an Australian pilot who
Commutes to hkg for work, in other words, is raising his or her family in Oz...
If u could pm me to start this conversation it would be a huge help...
Thanks
Now this isn't directed at any one person. If you have a family living in Australia and they have access to schools/hospital care etc, you are liable to pay full Australian taxes. If you reside and earn money in a country that has a tax treaty with Australia then you might get exemptions.
The Australia Tax Office (ATO) know when you enter and leave the country (the Immigration and ATO computers are linked). Whenever sums of more than a few thousands dollars come in or out of your bank account the ATO knows about it.
The Australia Tax Office (ATO) know when you enter and leave the country (the Immigration and ATO computers are linked). Whenever sums of more than a few thousands dollars come in or out of your bank account the ATO knows about it.
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Married to an Aussie chick !!!!
You poor poor man. But I guess they've gotta marry someone as all the decent Aussie blokes have seen the light & married outside of the Aussie chick scene. Aussie chicks are a lost species.
Enjoy paying the residency tax my friend.
You poor poor man. But I guess they've gotta marry someone as all the decent Aussie blokes have seen the light & married outside of the Aussie chick scene. Aussie chicks are a lost species.
Enjoy paying the residency tax my friend.
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www.ato.gov.au
Check out the residency info. You will be assessed based on where you 'abode' I.e where it appears you live based on your activities. So by your description, you'll be a resident and liable for tax (only if it exceeds your US tax obligations) as I understand it
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There are other cheaper alternatives:
Even though a new wife might be a bit of a loss leader, a little like when you drive a new car off the showroom floor, and park it in your drive, it smells nice, it looks good, feels good when you get in it, all your mates want one, and they're normally way more fun to drive. Admittedly it's never nice having to send the old cluncker off to the wreckers, normally costs a few bucks to have it taken away, but the country club in Hawaii might look good again, rocking up with a new ride, all for the sake of a bit of effort to trade up.
Bonus points are it might mean you don't have to live in Sydney, along with what seems like 1/2 of the third world. There can't be many Somalis Iraqis Afghans Lebbos Indians and assorted noodle slurpers left in their own countries.
Failing that, if you're dead set on moving to Lakemba, Auburn or Cabramatta, I have used the services of very professional company who have advised me well on involved matters for many many years. In a minefield of dealing with the ATO - who clearly hire only those brightest and best, with the highest of IQ's, who are equally balanced with a chip on both shoulders - as much of their legislation is deliberately vague and subjective, then I would thoroughly recommend being 100% open and honest with them and getting top quality, even if expensive, accurate and dependable advice on how to legally minimise your exposure.
Let me know by pm if you'd like details.
Even though a new wife might be a bit of a loss leader, a little like when you drive a new car off the showroom floor, and park it in your drive, it smells nice, it looks good, feels good when you get in it, all your mates want one, and they're normally way more fun to drive. Admittedly it's never nice having to send the old cluncker off to the wreckers, normally costs a few bucks to have it taken away, but the country club in Hawaii might look good again, rocking up with a new ride, all for the sake of a bit of effort to trade up.
Bonus points are it might mean you don't have to live in Sydney, along with what seems like 1/2 of the third world. There can't be many Somalis Iraqis Afghans Lebbos Indians and assorted noodle slurpers left in their own countries.
Failing that, if you're dead set on moving to Lakemba, Auburn or Cabramatta, I have used the services of very professional company who have advised me well on involved matters for many many years. In a minefield of dealing with the ATO - who clearly hire only those brightest and best, with the highest of IQ's, who are equally balanced with a chip on both shoulders - as much of their legislation is deliberately vague and subjective, then I would thoroughly recommend being 100% open and honest with them and getting top quality, even if expensive, accurate and dependable advice on how to legally minimise your exposure.
Let me know by pm if you'd like details.
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Micro...
Some guys who have their families in Oz and commute to HKG pay Aussie tax, and others do not.
Some have approached the ATO for a ruling, and have been ruled favourably ("favorably"), and others have not.
There are precious few hard rules to determine whether one is resident for tax purposes or not. The ATO likes to look at your own situation. One of the things that they look at is how much of a life you have made for yourself in Oz; i.e. club membership, house ownership, cars, boats, planes, etc, and how much of a life do have elsewhere. For example, will you still own a house and car in HI? Are your parents and siblings there, etc. Also, how many days in Oz will you spend? Not hard and fast, but it is generally a starting point for them.
At the end of the day, as someone else mentioned, if there is a double tax agreement, then you are ok.
Some guys who have their families in Oz and commute to HKG pay Aussie tax, and others do not.
Some have approached the ATO for a ruling, and have been ruled favourably ("favorably"), and others have not.
There are precious few hard rules to determine whether one is resident for tax purposes or not. The ATO likes to look at your own situation. One of the things that they look at is how much of a life you have made for yourself in Oz; i.e. club membership, house ownership, cars, boats, planes, etc, and how much of a life do have elsewhere. For example, will you still own a house and car in HI? Are your parents and siblings there, etc. Also, how many days in Oz will you spend? Not hard and fast, but it is generally a starting point for them.
At the end of the day, as someone else mentioned, if there is a double tax agreement, then you are ok.
Watch out for the "substantive presence" trap as well. Even if not resident but spending around three months a year in Australia and you have things such as a car registered in your name the ATO will get interested.
I know personally of an individual who had to pay a large sum to the ATO simply for sending his money home to Aus. He had no tie with Australia and had lived overseas for a number of years. Because he lived in company accommodation he could not produce proof that he "lived outside Australia". He only came home for 2 weeks at Easter and another 2 at Xmas.
What OK4 said is correct. You may not get lobbed with being an Australian resident for tax if you can tick all the boxes he mentioned. If you are not spending 180 days a year in Australia and you have "significant" ties and assets in the US you may be OK but I wouldn't bank on it.
As a US citizen you will still have your compliance costs in the US and still be required to submit a US tax return.
Ultimately you will be equalised by the tax treaty but there may be some hefty double-tax payments you have to make before you ultimately get equalised. If you are a Captain at Hawaiian you may have to budget north of USD 100k to carry the double tax until you get refunds.
Speak to a good accountant in Australia.
Good luck
As a US citizen you will still have your compliance costs in the US and still be required to submit a US tax return.
Ultimately you will be equalised by the tax treaty but there may be some hefty double-tax payments you have to make before you ultimately get equalised. If you are a Captain at Hawaiian you may have to budget north of USD 100k to carry the double tax until you get refunds.
Speak to a good accountant in Australia.
Good luck
All good advice above, if you go to the ATO website there is a basic 4 questions (I think) to ascertain if you will be a resident for tax purposes, having a wife and/or kids in Australia will almost certainly qualify you for that. As someone suggested, if you want to be 99% sure (you'll never be 100%),get a ruling from the ATO. I don't know anything about the US tax system but you may well be better off paying Australian tax?
If you write to the ATO setting out your circumstances and ask for a binding ruling they have to provide it I think with in 60 days. Once given they have to stick to it. IMO for what's it's worth if you were to spend much more than about 60 days a year in Aus you will be asked to,pay Aus tax.
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Nope. Completely wrong. They don't have to stick to any ruling at all, this is merely where you are now and it gets routinely checked. Don't fall into that trap. There's a few past threads that will share some light on the topic.
From the ATO web site.
A private ruling binds the ATO if it applies to you and you rely on it.
If you rely on a private ruling that benefits you – for example, your tax liability is less, or your grant or benefit amount is greater, than it would otherwise have been – we're bound by the ruling even if it is later proved to be incorrect. We can only apply the law in a way that is inconsistent with the private ruling if applying the law correctly would be of a greater benefit to you.
The effect of a binding ruling is that it protects you against liability for tax shortfall even if the ruling is incorrect. The false and misleading statement penalty and interest charges are also not applied in these circumstances.
If you choose not to rely on a private ruling and the position you adopt is shown to be incorrect, you'll be required to pay any underpaid tax or repay overpaid grants or benefits. Interest will generally also be payable on that amount. You may also be required to pay a penalty on the underpaid tax or overpaid grant or benefit if you don't have a reasonably arguable position
A private ruling binds the ATO if it applies to you and you rely on it.
If you rely on a private ruling that benefits you – for example, your tax liability is less, or your grant or benefit amount is greater, than it would otherwise have been – we're bound by the ruling even if it is later proved to be incorrect. We can only apply the law in a way that is inconsistent with the private ruling if applying the law correctly would be of a greater benefit to you.
The effect of a binding ruling is that it protects you against liability for tax shortfall even if the ruling is incorrect. The false and misleading statement penalty and interest charges are also not applied in these circumstances.
If you choose not to rely on a private ruling and the position you adopt is shown to be incorrect, you'll be required to pay any underpaid tax or repay overpaid grants or benefits. Interest will generally also be payable on that amount. You may also be required to pay a penalty on the underpaid tax or overpaid grant or benefit if you don't have a reasonably arguable position
Está servira para distraerle.
https://www.ato.gov.au/Individuals/I...tax-residency/
https://www.ato.gov.au/Individuals/I...king-overseas/
Those might give you a general flavour of the complexities involved.
Purely gratuitous advice would most strongly suggest that one should never do one's tax planning on hearsay and the experiences of another.
As someone has mentioned, there is no substitute for good, personalised tax advice that is tailored to one's own need. In your case, as it would appear that you will have to file two tax returns and carry the Australian credits toward any future US tax obligations for a ten year period, depending on the wording of any US/Australian tax treaty, you need an accountant based in Australia that has experience with filing US tax returns.
https://www.ato.gov.au/Individuals/I...king-overseas/
Those might give you a general flavour of the complexities involved.
Purely gratuitous advice would most strongly suggest that one should never do one's tax planning on hearsay and the experiences of another.
As someone has mentioned, there is no substitute for good, personalised tax advice that is tailored to one's own need. In your case, as it would appear that you will have to file two tax returns and carry the Australian credits toward any future US tax obligations for a ten year period, depending on the wording of any US/Australian tax treaty, you need an accountant based in Australia that has experience with filing US tax returns.
