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Bikeman93

Tax changes for expats

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Has anyone been impacted by the non resident rule and the removal of the tax free threshold and application of a 32% flat tax?

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Has anyone been impacted by the non resident rule and the removal of the tax free threshold and application of a 32% flat tax?
What are you referring to ?

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On 2/5/2018 at 10:31 AM, Bikeman93 said:

https://www.ato.gov.au/Rates/Individual-income-tax-rates/

 

A foreign (non) resident is an Australian who spends half the year overseas. Then a flat tax of 32% applies on all Australian earned income.

What the heck?  I thought the USA had some interesting tax things, and things like how to qualify for tax exemption while living over seas.  Here it sound like Australia is doing the exact opposite.  32% seems pretty high, especially since for 6 months work one would probably not be making too much money and would be in a lower tax bracket.  But it says "earned income" so I assume Oz tax man wouldn't count investment income, dividends, interest etc.  So if one were retired outside of Oz, the 32% would not be an issue, but if one went out and back in and worked, wow.  32%

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On 2/5/2018 at 10:31 AM, Bikeman93 said:

https://www.ato.gov.au/Rates/Individual-income-tax-rates/

 

A foreign (non) resident is an Australian who spends half the year overseas. Then a flat tax of 32% applies on all Australian earned income.

 

Well, is your earned income "Australian Earned Income"? 

 

On 2/6/2018 at 11:42 PM, gk10002000 said:

What the heck?  I thought the USA had some interesting tax things, and things like how to qualify for tax exemption while living over seas.  Here it sound like Australia is doing the exact opposite.  32% seems pretty high, especially since for 6 months work one would probably not be making too much money and would be in a lower tax bracket.  But it says "earned income" so I assume Oz tax man wouldn't count investment income, dividends, interest etc.  So if one were retired outside of Oz, the 32% would not be an issue, but if one went out and back in and worked, wow.  32%

 

They used to be very lax, but they changed the rules a few years ago. The USA we have to spend 330 days outside the USA to qualify for the exclusion, but Oz WAS 180 days. Now, nope. The UK is still 180 days I believe. 

 

So it used to be the USA was the worst but now its UK, USA, then Oz. 


And I believe when they enacted this law, they back-dated it a few years as well. I know a couple guys offshore that got mega-screwed by it. 

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On ‎2‎/‎7‎/‎2018 at 3:42 PM, gk10002000 said:

What the heck?  I thought the USA had some interesting tax things, and things like how to qualify for tax exemption while living over seas.  Here it sound like Australia is doing the exact opposite.  32% seems pretty high, especially since for 6 months work one would probably not be making too much money and would be in a lower tax bracket.  But it says "earned income" so I assume Oz tax man wouldn't count investment income, dividends, interest etc.  So if one were retired outside of Oz, the 32% would not be an issue, but if one went out and back in and worked, wow.  32%

They dangle the carrot, let some get the carrot, then fry them with the carrot

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7 hours ago, UncleTouchyFingers said:

 

Well, is your earned income "Australian Earned Income"? 

 

 

They used to be very lax, but they changed the rules a few years ago. The USA we have to spend 330 days outside the USA to qualify for the exclusion, but Oz WAS 180 days. Now, nope. The UK is still 180 days I believe. 

 

So it used to be the USA was the worst but now its UK, USA, then Oz. 


And I believe when they enacted this law, they back-dated it a few years as well. I know a couple guys offshore that got mega-screwed by it. 

I cant see anywhere where it says "earned income", just says income.

Correct me if I am wrong.

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1 hour ago, Bikeman93 said:

I cant see anywhere where it says "earned income", just says income.

Correct me if I am wrong.

Says exactly that in your second post. Post number 3 in here. 

 

Literally the last 3 words of it: 

 

On 2/5/2018 at 10:31 AM, Bikeman93 said:

https://www.ato.gov.au/Rates/Individual-income-tax-rates/

 

A foreign (non) resident is an Australian who spends half the year overseas. Then a flat tax of 32% applies on all Australian earned income.

Reads to me like if it isn’t Australian earned Income then you’d be a lot better off. 

 

AUSTRALIAN earned income = money MADE in OZ. 

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14 hours ago, UncleTouchyFingers said:

Says exactly that in your second post. Post number 3 in here. 

 

Literally the last 3 words of it: 

 

Reads to me like if it isn’t Australian earned Income then you’d be a lot better off. 

 

AUSTRALIAN earned income = money MADE in OZ. 

Yeah, I know. I am confused too. Damn semantics.

Tax used to be about numbers. 

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Just been browsing the AU Gov Tax site

This comment is just for people that still work in Auss alone

 

The way I see it there is no need to worry about this 183 day rule since you still live in Auss

 

If you did go overseas for work you have to declare any earnings (taxed or not ) , as this will determine your Medicare & other payments 

 

A non Resident is a person who takes up a permanent address (maybe like your own condo here )

OR has declared themselves leaving Auss permanently 

 

THIS IS BRIEF 

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On 2/7/2018 at 11:42 AM, gk10002000 said:

What the heck?  I thought the USA had some interesting tax things, and things like how to qualify for tax exemption while living over seas.  Here it sound like Australia is doing the exact opposite.  32% seems pretty high, especially since for 6 months work one would probably not be making too much money and would be in a lower tax bracket.  But it says "earned income" so I assume Oz tax man wouldn't count investment income, dividends, interest etc.  So if one were retired outside of Oz, the 32% would not be an issue, but if one went out and back in and worked, wow.  32%

All income is taxable in Auss including interest/dividends ect

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On 2/8/2018 at 7:58 PM, UncleTouchyFingers said:

I know a couple guys offshore that got mega-screwed by it. 

Yes Auss dropped all privileges for working overseas - It is all declarable (taxed or untaxed ) 

 

They were probably only paying 10 % tax or whatever the deal was, but since the 180 day limit was dropped they're open to the full tax upto 50%

 

About the non resident 183 days = This is what the yanks done on the rigs in nth West Auss 

 

Since they were non residents they would of had to pay full Auss taxes if they stayed more then 183 days (in a year)  so guess what

They had yearly shifts that didn't allow this

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