Expat Oz pilots to be taxed?
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Expat Oz 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."
It doesn't look like it will effect any non resident citizens, such as the majority of expats would be.
It will effect those who do a stint overseas for part of the tax year only.
Phew, the non income tax is the only reason I'm here in the sand!
It will effect those who do a stint overseas for part of the tax year only.
Phew, the non income tax is the only reason I'm here in the sand!
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Improving fairness and integrity in the tax system — better targeting the income tax exemption for employment income earned by Australians working overseas
Revenue ($m) 2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Taxation Office ‑ ‑ 215.0 225.0 235.0
The Government will better target the income tax exemption for foreign employment income, with effect from 1 July 2009. The exemption will apply to income earned as an aid worker, a charitable worker, under certain types of government employment or on projects that are in the national interest. This measure will have an estimated gain to revenue of $675.0 million over the forward estimate period.
The measure forms part of a package of measures to improve fairness and integrity in the tax system.
Currently, certain foreign employment income earned by Australians working overseas for a continuous period of 91 days or more is exempt from income tax. The original intent of this measure was to relieve double taxation, however, in practice little foreign tax may actually be paid on the foreign income concerned.
Instead, foreign employment income will generally become taxable and taxpayers will be entitled to a foreign income tax offset for foreign tax paid on the foreign employment income. This will relieve double taxation for those individuals.
Revenue ($m) 2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Taxation Office ‑ ‑ 215.0 225.0 235.0
The Government will better target the income tax exemption for foreign employment income, with effect from 1 July 2009. The exemption will apply to income earned as an aid worker, a charitable worker, under certain types of government employment or on projects that are in the national interest. This measure will have an estimated gain to revenue of $675.0 million over the forward estimate period.
The measure forms part of a package of measures to improve fairness and integrity in the tax system.
Currently, certain foreign employment income earned by Australians working overseas for a continuous period of 91 days or more is exempt from income tax. The original intent of this measure was to relieve double taxation, however, in practice little foreign tax may actually be paid on the foreign income concerned.
Instead, foreign employment income will generally become taxable and taxpayers will be entitled to a foreign income tax offset for foreign tax paid on the foreign employment income. This will relieve double taxation for those individuals.
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International tax — review of the foreign source income anti‑tax‑deferral (attribution) regimes
Revenue ($m) 2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Taxation Office ‑ ‑ * * *
The Government will reform Australia's anti‑tax‑deferral (attribution) regimes which ensure that residents can not accumulate income offshore and thereby defer, or even avoid, Australian tax, with effect for income years on or after Royal Assent to the legislation. This measure will have an ongoing unquantifiable revenue impact.
These changes implement most of the recommendations of the Board of Taxation review of the attribution regimes.
To implement the Board's recommendations, the Government will:
* modernise the controlled foreign company (CFC) provisions and rewrite them into the Income Tax Assessment Act 1997;
* repeal and replace the foreign investment fund (FIF) provisions with a specific narrowly defined anti‑avoidance rule;
* repeal the deemed present entitlement rules; and
* amend the transferor trust rules to enhance their effectiveness and improve their integrity.
The operation of these regimes has, over time, become inefficient, and in light of growing global interactions, poorly targeted. The compliance costs imposed are disproportionate to the integrity risk to the revenue. The reforms will reduce compliance costs for affected businesses and help ensure that Australia's managed funds remain competitive in global financial markets.
The Government will consult on the implementation of these reforms.
Revenue ($m) 2008‑09 2009‑10 2010‑11 2011‑12 2012‑13
Australian Taxation Office ‑ ‑ * * *
The Government will reform Australia's anti‑tax‑deferral (attribution) regimes which ensure that residents can not accumulate income offshore and thereby defer, or even avoid, Australian tax, with effect for income years on or after Royal Assent to the legislation. This measure will have an ongoing unquantifiable revenue impact.
These changes implement most of the recommendations of the Board of Taxation review of the attribution regimes.
To implement the Board's recommendations, the Government will:
* modernise the controlled foreign company (CFC) provisions and rewrite them into the Income Tax Assessment Act 1997;
* repeal and replace the foreign investment fund (FIF) provisions with a specific narrowly defined anti‑avoidance rule;
* repeal the deemed present entitlement rules; and
* amend the transferor trust rules to enhance their effectiveness and improve their integrity.
The operation of these regimes has, over time, become inefficient, and in light of growing global interactions, poorly targeted. The compliance costs imposed are disproportionate to the integrity risk to the revenue. The reforms will reduce compliance costs for affected businesses and help ensure that Australia's managed funds remain competitive in global financial markets.
The Government will consult on the implementation of these reforms.
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Instead, foreign employment income will generally become taxable and taxpayers will be entitled to a foreign income tax offset for foreign tax paid on the foreign employment income. This will relieve double taxation for those individuals.
All it means is that your government will tax you on your income (hopefully they will give you an foreign earned income exemption) but will deduct any taxes you already paid on the same income from your host country.
The only ones to really benefit will be Australian tax attorneys!
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This means Australia will be joining a very exclusive club (the US being the other member) where her citizens will have the pleasure of being taxed no matter where they live and work in the world.
New Zealand IRD taxes ALL of its tax residents on their worldwide income!!
Certain countries have reciprocal tax treaties which mitigates against double taxation.
Australia is only following a worldwide trend in closing down tax dodges !!
Certain countries have reciprocal tax treaties which mitigates against double taxation.
Australia is only following a worldwide trend in closing down tax dodges !!
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Gents, it quite clearly states that the income of residents earned off-shore will be taxed. Therefore, if you are a non-resident as I would assume that most people in the sandpit are, then you will not be taxed.
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This part with heading.....
Does not mention anything about residents...it says...
Improving fairness and integrity in the tax system — better targeting the income tax exemption for employment income earned by Australians working overseas
Currently, certain foreign employment income earned by Australians working overseas for a continuous period of 91 days or more is exempt from income tax. The original intent of this measure was to relieve double taxation, however, in practice little foreign tax may actually be paid on the foreign income concerned.
Instead, foreign employment income will generally become taxable and taxpayers will be entitled to a foreign income tax offset for foreign tax paid on the foreign employment income. This will relieve double taxation for those individuals.
Instead, foreign employment income will generally become taxable and taxpayers will be entitled to a foreign income tax offset for foreign tax paid on the foreign employment income. This will relieve double taxation for those individuals.
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The Government will reform Australia's anti‑tax‑deferral (attribution) regimes which ensure that residents can not accumulate income offshore and thereby defer, or even avoid, Australian tax, with effect for income years on or after Royal Assent to the legislation.
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I agree, here is the link to the proposed changes to 23AG
http://www.treasury.gov.au/documents..._amendment.pdf
23AG only deals with residents
SECTION 23AG - EXEMPTION OF INCOME EARNED IN OVERSEAS EMPLOYMENT)
So it is a big deal for the guys on basings
http://www.treasury.gov.au/documents..._amendment.pdf
23AG only deals with residents
SECTION 23AG - EXEMPTION OF INCOME EARNED IN OVERSEAS EMPLOYMENT)
So it is a big deal for the guys on basings
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according to today's Australian newspaper as longs as you qualify as a non-resident for more than 2 years 23AG should not cause any concerns for us Aussie expats...bloody hope so otherwise I will be in a whole world of hurt 
Tax time bomb for overseas workers | The Australian
Tax time bomb for overseas workers | The Australian
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Oz CPA in Dubai
If you would like confirmation from a horse’s mouth, there is an Oz 
CPA giving a seminar on this very issue in Dubai next week and you can also book a one on one free meeting with him.
I have the details if you want to PM me.
CPA giving a seminar on this very issue in Dubai next week and you can also book a one on one free meeting with him.I have the details if you want to PM me.
