# Australian taxes



## Yankdownunda (Aug 29, 2013)

Hi looking at accepting an offer to move to Dubai but was wondering if anyone had experience with tax implications when sending or bringing money back into Australia? Is it best to leave it off shore?

Thanks


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## bongoman2 (Apr 18, 2013)

Sending money to Australia is okay as long as you are a non-resident by the tax dept.

You should get your hands on a book called " The Aussie expat: the luckiest person on earth"

The Aussie Expat - The Luckiest Person on Earth: Steve Douglas, Graphicat Design Place: 9789810575465: Amazon.com: Books

Steve does my taxes too


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## Yankdownunda (Aug 29, 2013)

Thanks heaps. Just what I was looking for


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## Jager (May 26, 2012)

bongoman2 said:


> Sending money to Australia is okay as long as you are a non-resident by the tax dept.
> 
> You should get your hands on a book called " The Aussie expat: the luckiest person on earth"
> 
> ...


Getting non-residency status is the tricky bit. Because there is no double taxation treaty between Australia and the UAE, the ATO will look at your status more closely. As a minimum, the general rule is you need to be overseas at least 3 years.

The book looks good (thanks for the link), but you also need to be careful getting outdated advice. In the Budget last year, one of the small changes that they slipped through was to remove the 50% reduction of Capital Gains Tax from the sale of assets/investments held for 12 months for non-residents.


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## bongoman2 (Apr 18, 2013)

Jager said:


> Getting non-residency status is the tricky bit. Because there is no double taxation treaty between Australia and the UAE, the ATO will look at your status more closely. As a minimum, the general rule is you need to be overseas at least 3 years.
> 
> The book looks good (thanks for the link), but you also need to be careful getting outdated advice. In the Budget last year, one of the small changes that they slipped through was to remove the 50% reduction of Capital Gains Tax from the sale of assets/investments held for 12 months for non-residents.


Agreed,

Steve is very proactive with expat rules and laws (always within the law)
He has been actually lobbying the government for them to withdraw that CGT changes and he is also helping aussie expats to know the laws exactly, i.e get your house valued at the correct timing.

As for how to become a non-resident, the ATO is the main adjudicator, but can easily be proved by removing name from Electoral roll officially. I have spoken to ATO and they confirmed this.


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## Jager (May 26, 2012)

bongoman2 said:


> As for how to become a non-resident, the ATO is the main adjudicator, but can easily be proved by removing name from Electoral roll officially. I have spoken to ATO and they confirmed this.


I'm not a tax or financial export, but I'd sugest its a lot more complex than simply removing your name from the electoral role.

A recent ruling by the Administrative Appeals Tribunal (AAT) found an Australian citizen to be a tax resident of Australia for the year ended 30 June 2009, despite the individual living and working overseas from April 2008 to August 2010. The ruling affirmed a decision of the Australian Tax Office (ATO), which assessed the individual as a tax resident and imposed Australian tax on his foreign employment income. 

In this case, because he continued to keep a vacant property in Australia, kept a car at the property, kept his Australian bank and superannuation accounts and kept his Australian phone and internet accounts, it was deemed he had not cut his links to Australia. 

Have a read through this newsletter from Ernst & Young which gives more details:

http://www.ey.com/Publication/vwLUAssetsPI/HR_Tax_September_2012/$FILE/HC-Alert_Australia.pdf

No one wants to come home from 3 - 4 years of 'tax free' employment in Dubai, only to be hit afterwards with a huge tax bill.


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## bongoman2 (Apr 18, 2013)

Yeah agreed, you must cut some ties to show you are not fully domiciled in Australia. That guy was also getting paid in Aussie dollars into his Australian bank account, kept his house running and returned all the time.

I simply meant that a lot of this is hard to prove to the ATO (unless you go to court of course). Ans i was advised by the ATO that a good neat way to show non-residency was to unenroll and also have mail redirected etc. Its more about proof as it is such a grey area.

Steve does an Aussie Expat seminar a few times a year in different cities, so he keeps things up to date.


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## Jager (May 26, 2012)

Thanks. If Steve does a seminar here please come back and let us Aussies know.


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## jk_1337 (Oct 25, 2012)

I've been told 2 years is a minimum and 3 is well clear.. but even if its just over the 2 year mark, it should be ok. This is just what I've been told but naturally, the longer you're out, the stronger the case is.

I wasn't told anything about my bank accounts or super (neither are collecting any income, just haemorrhaging money!) so I should probably check up on that!

I was also advised to indicate a permanent departure on the departure card when first leaving but to enter each time as a visitor (and to avoid using medicare/private health card).

I have no property in Australia and I couldn't find a buyer for my car. I also received a letter from the ATO saying they've cancelled my ABN (used as a Sole Trader) because according to their records, I'm no longer running any enterprise in Australia.

I had requested a postal vote but have just been told last night that I should really have deregistered....

Sounds like I need to talk to my accountant and soon....


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## bongoman2 (Apr 18, 2013)

jk_1337 said:


> Sounds like I need to talk to my accountant and soon....


nah, sounds like you are fine. Its only for those who are taking the mickey that they will chase, for all others its pretty easy to prove you lived overseas.


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## Jager (May 26, 2012)

bongoman2 said:


> nah, sounds like you are fine. Its only for those who are taking the mickey that they will chase, for all others its pretty easy to prove you lived overseas.


Agreed, sounds like you are fine. However, its not about proving you lived overseas - its about demonstrating you've cut your physical and financial ties with Australia. 

The fact you don't have a house there is probably a big factor in your favour. However, keeping your car there is a complication and I'd suggest you should think about selling it.


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## egs (Jun 11, 2011)

Hi All,
Does anyone know what you do with your Super account if you are permanently heading OS?

Cheers


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## travertine (Aug 10, 2010)

Hi. I've recently been in touch with my super provider regarding this matter. This is what I gleaned:
- it depends on your age and the so called preservation age of the super investment I.e. The age at which you may withdraw the funds partially or in total;
- some countries have reciprocal arrangements with Australia which might allow you to transfer the super funds to a comparable scheme in the other country. I'm looking at this option in relation to Canada;
- if you can take the funds (whole or partial) then you also need to consider the tax implications. I asked my provider for some advice on this but they referred me to a tax specialist or the ATO.

For now I'm leaving the funds where they are.


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