# Oz expats to be taxed... I hope not.



## Aussiephil (Nov 23, 2008)

I believe this only applies to those who are classed as resident for tax purposes and not your average expat, but can't be certain till all the details are published...

One thing's for sure, if it does apply to non residents then I shall be on the next flight home.

Income tricks of the rich targeted | The Australian


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## Stephen2500 (May 27, 2008)

*Media Release from Treasurer*



Aussiephil said:


> I believe this only applies to those who are classed as resident for tax purposes and not your average expat, but can't be certain till all the details are published...
> 
> One thing's for sure, if it does apply to non residents then I shall be on the next flight home.
> 
> Income tricks of the rich targeted | The Australian


The Treasurers media release does not really make it much clearer. 

Treasury Ministers Portal

I have most certainly sought clarification from my tax adviser in Australia. 

Like you, and many others I suspect, I will be out of here. 

Social Security here I come. What did that do to your calculations, Mr Treasurer?!!:der:


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## wadiman (Mar 24, 2008)

*Sure hope non-residents aren't affected!*

I agree - there'll definitely be a significant exodus of aussies if this applies to those of us who have non-resident status.

I'll be waiting with bated breath to hear the results of the enquiry to your tax adviser Stephen - be sure to post!

Wadiman


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## wadiman (Mar 24, 2008)

*Just found this....*

2009 Budget overview- tax highlights at a glance - 12 May 2009

Suggests that the budget measure applies to Australian *residents* - not non-residents! 

A more definitive answer would be useful though...


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## Stephen2500 (May 27, 2008)

My advice recevied is that they are trying to get Australians who still lodge returns as resident (lower tax thresholds) and then do not declare their O/S income if they have worked for 90 days or more overseas. These are still classified as *Residents for tax purposes*.

Living and working o/s, and not deriving income in Australia (other than interest on investments etc), you are classified as a *Non Resiudent for taxation purposes*. 

The siutation for Non Resident is unchanged, therefore we can relax!

You don't have to sell the 3 BMW's and cancel the order for the private jet.


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## Aussiephil (Nov 23, 2008)

Thanks for posting that, good to have some clarification from a professional...

Lets just hope this isn't a taste of things to come later for all the Aussie expats around the world


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## grasshopper (Aug 12, 2008)

I agree - looks like this change only applies to tax residents. Try and make sure you've broken as many ties with Australia as possible!

However it is a bit concerning as I've also heard that Rudd has mooted the idea of an expat tax similar to what our American friends have... if that happens it'll probably be time to go home!


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## wadiman (Mar 24, 2008)

*Thanks*

Good on you Stephen for getting that info!

Well i'll be busting my pickle this coming tax year to get as much moula home before they introduce punitive taxation measures on us poor expats!


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## Aussiephil (Nov 23, 2008)

A good article from last weekends 'The National' on the new taxation rules for Aussies. 

Protecting your money while abroad - The National Newspaper

Makes good reading and confirms what everybody else has said that it doesn't apply to non residents.


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## solinvictus (Jul 15, 2009)

*My 2 cents worth*

Hi, I don't live in Dubai but I live and work in Asia. From what I can see there is nothing in the Australia forum on this topic so I'd like to contribute here.

I believe we are being misled by the generic statements being put out courtesy of our pork barrelling government which is seeking to drain the accounts of as many hardworking, taxpaying Australians to compensate for their misguided and overly generous assistance to certain segments of the population. 

I don't believe that the Aus government can demand that people who actually earn their living as expats and have done so for over 2 years consistently, pay double taxation. Which essentially is what they are trying to do.

Those of us who are genuine expats and not flying out to do contract work while having another job in Australia, and who have established a genuine residence in the countries where we work should be exempt from such measures. In my case I have lived and worked in two countries in Asia for around a decade. I have not held a job in Australia for this time.

I have not permanently left Australia but I am considered a foreign resident of the country I presently live in and pay tax as well as social security payments such as health insurance to the government of the country in which I live. My home address is of course listed as Australia on my passport and it is the address I give when having to fill out statements etc for the govt and authorities of the country in which I live.

However, I and many others are not doing a 'stint'. Our career and life is not in Australia. I believe the government is trying to pull a swifty by not recognising this distinction. After all, our overly generous social programs are going to come back and bite the Australian taxpayer as are all the intakes of refugees and new migrants who need social security as opposed to skilled migrants who meet the requirements for such a visa and have jobs lined up before or very shortly after they arrive in Australia.

This is a clearly cynical money grab. I have not needed to file a tax return in Australia for nearly a decade yet I am not living permanently in my present country because it places big restrictions on foreign residents. I cannot get permanent residency unless I marry, for example. I have not given up my life in Australia permanently but I have not worked in my home country for about a decade and will not likely be working in Australia again for about 5 more years.

Watch out for the swine who are trying to get us to pay for their pork barrelling.


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## Buellcrazy (Feb 18, 2010)

*Totally agree*

I totally agree with you solinvictus, I don't see why an Australian working overseas longterm should have to pay tax in Australia, they have not thought about our living circumstances, we are usually away from our families for long periods of time if they haven't moved with us, we are not using any Australian facilities such as roads, hospitals etc and they want to take a huge chunk of our o/s income, Rudd and his merry men are the biggest bunch of crooks out.
He says its for Nation building, that is the biggest load of rubbish I've ever herd, its so he can say while he was in power that the countries revenue increased by 450 million over a four year period.
Show us Mr Rudd what you are going to do with this money and I bet in four years time they will have nothing to show for it, schools wont be up graded, we will still be paying crazy fees for registration on vehicles, hospitals will still be struggling, Australia's overseas debt would not have dropped but I bet the government will have pay rises that wont be announced to the public.
They are a bunch of blood suckers and the Australian public are the suckers, Rudd says that the average Australian earns $700 dollars a week, we all know that is rubbish and 95% of Australians are in debt.
This truly upsets me, no matter where you turn someone want to take your hard earned money from you, I will knot let this government take mine! :boxing:


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## Stephen2500 (May 27, 2008)

It is vital that you establish your status as a 'non resident for taxation purposes'.

Suggest you go to ATO website and read Income Tax Ruling 2650, and also read the following:

www.ato.gov.au/print.asp?doc=/content/3620.htm

and

Residency - overview

(Sorry, there may be a better way to post those links but I am not a techie :confused2

What used to be a fairly simple qualification has now been made more complicated, as is the way with Australian Tax Law.


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## Andy Capp (Oct 5, 2008)

Can I just say I hope it does happen....

You immigrants should pay your taxes.

Bloody convicts...


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## |James| (Dec 23, 2009)

Aussiephil said:


> I believe this only applies to those who are classed as resident for tax purposes and not your average expat, but can't be certain till all the details are published...
> 
> One thing's for sure, if it does apply to non residents then I shall be on the next flight home.
> 
> Income tricks of the rich targeted | The Australian


Hmm that's great news!!! I hope they set the minimum taxation bracket to at least 55%


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