# Canadian & Australian taxes



## SunnyBreeze (Jul 11, 2009)

Hi there, I apologize for this question being specific, but am hoping there are some Canadians who might be able to offer some advice. 

I had some income last year in Canada, before moving to Australia last Feb. It's Canadian tax season and I am unsure whether I should file taxes and report the income I earned in Canada, and then when it comes to tax season in Australia, report only my Australian income here? Or if I should ignore reporting my Canadian income to the Canadian tax system and instead, report all 2010 income to the Australian government only, declaring the Canadian income as 'foreign income'?

Does anyone have any advice?

Thank you!


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## silencer1 (Aug 9, 2010)

SunnyBreeze said:


> Hi there, I apologize for this question being specific, but am hoping there are some Canadians who might be able to offer some advice.
> 
> I had some income last year in Canada, before moving to Australia last Feb. It's Canadian tax season and I am unsure whether I should file taxes and report the income I earned in Canada, and then when it comes to tax season in Australia, report only my Australian income here? Or if I should ignore reporting my Canadian income to the Canadian tax system and instead, report all 2010 income to the Australian government only, declaring the Canadian income as 'foreign income'?
> 
> ...


Hi SunnyBreeze,

I believe you still need to file the Canadian tax return for the income you earned in Canada last year and claim on your Australian tax return foregn tax credit for taxes paid in Canada. There is tax treaty between two countries which would allow you to avoid double taxation. Hope it helps

Silencer1


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## amaslam (Sep 25, 2008)

You'll need to do two returns for the first year (CA and AU) and then afterwards always an AU one. Any Canadian income (like rental, business) that continues means two returns every year then. The tax years are different so you likely need to track the info monthly for good accuracy. 

Really you need professional advice tailored to your situation, no forum can really get specific and be correct on all counts.


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## SunnyBreeze (Jul 11, 2009)

Thanks Amaslam and Silencer1!


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## amaslam (Sep 25, 2008)

One more thing you need to take into account is retirement systems (government run). In Australia at retirement time you have things like age pension and similar. To make sure you receive credit for time worked in AU for the the Canadian equivalent you usually need to file a form. From Australia it will be the ATO and I would think in Canada their tax agency. 


Here is one of the topics and their questions, I think it would be worth finding out if you need to file some form annually so your entitlements in both countries is accurate (you don't know exactly where you will retire but will want whoever does pay you to pay you the correct amount).

Pensioners Abroad



SunnyBreeze said:


> Thanks Amaslam and Silencer1!


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## Andrew James (Nov 6, 2010)

Hi,

You may still have a Canadian tax filing obligation on worldwide income and depending on your Australian tax residence, the same in Australia as well.

Adding to the above poster's comments, Australia will be interested in your RRSP regardless of whether you are at retirement age or not.

Best,

Andrew


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## daughter_in_oz (Dec 24, 2016)

My daughter has been living in Australia since November 2015. She started working in February 2016. She has also extended her visa as a student, and may stay for another year or two, both going to school and working part-time. She filed her Australian income taxes (for the year ended June 30, 2016) and was told she only needed to show her Australian income for her Australian income taxes. I am also planning to file her 2016 Canadian income tax this year as well. For her Canadian taxes, do I need to declare her Australian income? If so, over what period? (different tax years). For a Canadian moving to the U.S., we know the advice is for a TFSA to cash it in and get rid of it, due to adverse filing and other U.S. requirements. Is the same true for a Canadian living in Australia? Should we be cashing in her TFSA, or is it OK to leave it as is?


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