Australian Tax Laws for Touring Pilots/Engineers
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Australian Tax Laws for Touring Pilots/Engineers
Hi to the other Australian expats,
What ruling do you guys apply for tax purposes within Australia? I am working overseas on a 6-weeks on 6-weeks off basis with CHC Global and would appreciate some guidance on this matter.
I have searched the ATO website, but there is too much mumble-gumble about the various rulings and tax laws, so feedback from other pilots/engineers on this matter would be appreciated.
Regards,
CJ
What ruling do you guys apply for tax purposes within Australia? I am working overseas on a 6-weeks on 6-weeks off basis with CHC Global and would appreciate some guidance on this matter.
I have searched the ATO website, but there is too much mumble-gumble about the various rulings and tax laws, so feedback from other pilots/engineers on this matter would be appreciated.
Regards,
CJ
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From what I can determine you in for some fun ...
Basically if you have an enduring relationship with Australia (which on 6/6 touring you do have ) ie a family (Kids, wife etc??) own a house or a car you ARE liable for Income Tax assessment on your income.
You may apply to the ATO (Aust Tax Office) for a private ruling which MAY exempt you but you will of course have to give them a lot of info ????? about what you are doing and where!
Go find a GOOD tax accountant With the experience of working with O'seas tax liability law.
Good luck .....
P.S. try not to drop the rest of us in it please!!!
Basically if you have an enduring relationship with Australia (which on 6/6 touring you do have ) ie a family (Kids, wife etc??) own a house or a car you ARE liable for Income Tax assessment on your income.
You may apply to the ATO (Aust Tax Office) for a private ruling which MAY exempt you but you will of course have to give them a lot of info ????? about what you are doing and where!
Go find a GOOD tax accountant With the experience of working with O'seas tax liability law.
Good luck .....
P.S. try not to drop the rest of us in it please!!!
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I am well aware what happened a few years ago when Ansett Airlines collapsed out some pilots falsely declared their foreign income/residency status and burnt the bridges for all the others working overseas.
All I want is facts and figures to best deal with this situation. Anyone that is in a similar situation, could you please send me the contact details of a good overseas tax agent?
Cheers,
CJ
All I want is facts and figures to best deal with this situation. Anyone that is in a similar situation, could you please send me the contact details of a good overseas tax agent?
Cheers,
CJ
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There is reason to be mindful of the ATO's legislation on this issue. It is "plainly" (NOT) set out in Section 23 AG of the Act.
One important thing to note.
Subsection 23AG(6) of the ITAA 1936 defines 'foreign service' as:
'For the purpose of this section, a period during which a person is
engaged in foreign service includes any period during which the
person is, in accordance with the terms and conditions of that
service:
(a) absent on recreation leave, other than:
(i) leave wholly or partly attributed to a period of service or
employment other than that foreign service;
(ii) long service leave, furlough, extended leave or leave of a
similar kind (however described); or
(iii) leave without pay or on reduced pay; or
(b) absent from work because of accident or illness,
The Section goes on and on. As you are paid a differing amount when home as to when you are away, (iii) might have some implications. Other CHC guys in other bases are exempt from what I've heard, but as we are being offered the "new" package here in "paradise", one of our engineers is checking into the effect of receiving just normal base pay when at home.
On our current system with Apram, we are paid the same amount at home as we get while at work so we have had a ruling that we are deemed non resident for tax purposes as we are still in foreign service whilst at home because we are paid the same and can be recalled if required.
The best advice is to get professional advice to be sure. Horwiths in Perth have been dealing with this issue in the passed. Its all well and good for us to interpret the Section 23AG, but it will be how the ATO interprets it that counts.
Cheers
Geoff
One important thing to note.
Subsection 23AG(6) of the ITAA 1936 defines 'foreign service' as:
'For the purpose of this section, a period during which a person is
engaged in foreign service includes any period during which the
person is, in accordance with the terms and conditions of that
service:
(a) absent on recreation leave, other than:
(i) leave wholly or partly attributed to a period of service or
employment other than that foreign service;
(ii) long service leave, furlough, extended leave or leave of a
similar kind (however described); or
(iii) leave without pay or on reduced pay; or
(b) absent from work because of accident or illness,
The Section goes on and on. As you are paid a differing amount when home as to when you are away, (iii) might have some implications. Other CHC guys in other bases are exempt from what I've heard, but as we are being offered the "new" package here in "paradise", one of our engineers is checking into the effect of receiving just normal base pay when at home.
On our current system with Apram, we are paid the same amount at home as we get while at work so we have had a ruling that we are deemed non resident for tax purposes as we are still in foreign service whilst at home because we are paid the same and can be recalled if required.
The best advice is to get professional advice to be sure. Horwiths in Perth have been dealing with this issue in the passed. Its all well and good for us to interpret the Section 23AG, but it will be how the ATO interprets it that counts.
Cheers
Geoff
The tax laws are quite clear on this issue. If you're employed on foreign service outside Australia (and for touring pilots continuity of service does apply if you're on even time tours, I have a private ruling on that), then IF you've paid foreign tax you have to declare your foreign service income under "EXEMPT FOREIGN INCOME" on your tax return; If you haven't paid foreign tax you have to declare your foreign income as assessable income. Any exempt foreign income doesn't accrue additional tax, but it does effect your average tax rate for other income (eg rental properties); non-exempt foreign income gets taxed in the normal way. No need to get expensive accountants and tax lawyers involved on this one, just ring the ATO and speak to an information officer. It's all straight forward, info available on the ATO web site. Hope that helps...
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