Yank expat working in Australia.
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Yank expat working in Australia.
I've got a little exposure of the area from my time in the Navy years ago, "Perth, 10 million flies can't be wrong" and have applied to a few positions that don't close until September so looking for some "ground truth" here.
Taxes, I don't plan on returning to the states but in reading the Aus Tax Code, unless you are an Aus citizen you pay the foreign tax in addition to Aus tax. Maybe I'm reading it wrong, just starting the process.
Any lessons learned are appreciated.
Taxes, I don't plan on returning to the states but in reading the Aus Tax Code, unless you are an Aus citizen you pay the foreign tax in addition to Aus tax. Maybe I'm reading it wrong, just starting the process.
Any lessons learned are appreciated.
You cannot justt become an ex-pat from the US unless you go though all the paperwork process.
Why American Expatriation is Different
First, what exactly is expatriation? “In 1868, Congress declared that ‘the right of expatriation is a natural and inherent right of all people, indispensable to the enjoyment of the rights of life, liberty, and the pursuit of happiness.’" (Source: www.justice.gov/olc/expatriation.htm) There is no right more essential to individual liberty than the right to expatriate. The right to renounce one’s citizenship is the single most powerful check on the growth of any predatory government. That’s perhaps why it is so seldom mentioned. But to the 6+ billion people who aren’t U.S. citizens, expatriation simply means picking up and moving to another country. A British family living in Melbourne, a Canadian studying in Paris, a German working in Hong Kong...all are expatriates (“expats” for short). The act of moving somewhere else frees them from the tax obligations of their native country. This allows people who are fed up with their government the freedom to vote with their feet and their dollars. But for U.S. citizens, expatriation is not accomplished by moving to another country. The U.S. government demands taxes from you no matter where you live. “Taxation without representation” was at the heart of the Founding Fathers' revolt against England. What tragic irony that America would end up being the only country to do this to its citizens today. The other nations of the world respect that if you're not living in your native country or using the government’s services, then you're exempt from their tax net. (“Tax net” is the term accountants and tax lawyers use.)
According to the State Department, there are over five million U.S. citizens living abroad. All are forced laborers for the U.S. political establishment. But you certainly don't have to be living abroad to consider expatriation. I, for one, wasn't. Whether you’re a young entrepreneurial spirit or a wealthy retiree, expatriation is a choice that can transform the quality of your life. So in short, expatriation for an American is the legal act of divorcing yourself from the U.S. government. Anything else is just living abroad. But expatriation is not a one-step deal. As convenient as it would be, you can’t expatriate by sending in your U.S. passport with a letter to the State Department declaring you're no longer a citizen. To make it count with the government, you must fill out their forms and jump through their hoops.
First, what exactly is expatriation? “In 1868, Congress declared that ‘the right of expatriation is a natural and inherent right of all people, indispensable to the enjoyment of the rights of life, liberty, and the pursuit of happiness.’" (Source: www.justice.gov/olc/expatriation.htm) There is no right more essential to individual liberty than the right to expatriate. The right to renounce one’s citizenship is the single most powerful check on the growth of any predatory government. That’s perhaps why it is so seldom mentioned. But to the 6+ billion people who aren’t U.S. citizens, expatriation simply means picking up and moving to another country. A British family living in Melbourne, a Canadian studying in Paris, a German working in Hong Kong...all are expatriates (“expats” for short). The act of moving somewhere else frees them from the tax obligations of their native country. This allows people who are fed up with their government the freedom to vote with their feet and their dollars. But for U.S. citizens, expatriation is not accomplished by moving to another country. The U.S. government demands taxes from you no matter where you live. “Taxation without representation” was at the heart of the Founding Fathers' revolt against England. What tragic irony that America would end up being the only country to do this to its citizens today. The other nations of the world respect that if you're not living in your native country or using the government’s services, then you're exempt from their tax net. (“Tax net” is the term accountants and tax lawyers use.)
According to the State Department, there are over five million U.S. citizens living abroad. All are forced laborers for the U.S. political establishment. But you certainly don't have to be living abroad to consider expatriation. I, for one, wasn't. Whether you’re a young entrepreneurial spirit or a wealthy retiree, expatriation is a choice that can transform the quality of your life. So in short, expatriation for an American is the legal act of divorcing yourself from the U.S. government. Anything else is just living abroad. But expatriation is not a one-step deal. As convenient as it would be, you can’t expatriate by sending in your U.S. passport with a letter to the State Department declaring you're no longer a citizen. To make it count with the government, you must fill out their forms and jump through their hoops.
I've got a little exposure of the area from my time in the Navy years ago, "Perth, 10 million flies can't be wrong" and have applied to a few positions that don't close until September so looking for some "ground truth" here.
Taxes, I don't plan on returning to the states but in reading the Aus Tax Code, unless you are an Aus citizen you pay the foreign tax in addition to Aus tax. Maybe I'm reading it wrong, just starting the process.
Any lessons learned are appreciated.
Taxes, I don't plan on returning to the states but in reading the Aus Tax Code, unless you are an Aus citizen you pay the foreign tax in addition to Aus tax. Maybe I'm reading it wrong, just starting the process.
Any lessons learned are appreciated.
Part of a year then they credit back the tax you paid overseas then re-tax you under the Australian system... this can be pretty unfair due to the different taxes like VAT (20%) vs GST (10%) that is not accounted for.
A full tax year then you pay tax here under the regulations just like any other Australian. They estimate the yearly tax bill each pay cycle but since it's only for that pay cycle and not YTD usually you either owe tax or they owe you at tax time depending on how much overtime you do.
I'm just a DCP so maybe speak to an accountant.
