Expat’s – Pride Co

Am I an Australian Resident for Tax Purposes?

Those Testy Grey Areas and 9 Hidden Traps

When do you need to know about Expat Tax?

1. Plan before you leave

If you haven’t left Australia but are on-the-move, we recommend you plan before you go. It could avoid costly mistakes or the hassle of trying to fix things from a distance. Also, the sooner you start planning the more you can do to avoid excess tax.

2. Manage your tax while overseas

If you’re already overseas you want to make sure whatever you’re doing now doesn’t leave you with a painful unexpected tax bill, both while you’re living abroad and when you return. You might need an Aussie and an overseas tax tag team.

3. Planning to Return

If you have your sights set on home, make sure it’s a happy tax landing. There is some planning you need to do before you get on the plane. Trying to fix foreign tax issues once you’re home can be a headache and hassle.

Passing (or failing) the Residency Tests

Establishing if you are an Australian tax resident is not straightforward - there are a lot of grey areas. As a high-level guide, the Australian Tax Office (ATO) uses four (4) main tests for establishing tax residency in Australia:

1

The
“Resides”
Test

2

The
Domicile
Test

3

The
183-Day
Test

4

The
Commonwealth
Superannuation

Test

How will you be taxed as an Expat?

As an Expat Australian Taxpayer you have a lot more to think about than just filling out a tax form.

Here are nine (9) questions you not only need the answers to, you need to know the hidden traps in each answer.

Do you need to lodge an Australian tax return?

What happens when you work in Australia and overseas in the same year?

Do you get double taxed, or can you claim a credit for foreign tax paid??

Should you sell your home if you move overseas?

What happens if you decide to rent your home instead?

What happens to your business when you move overseas?

What happens to your shares when you move overseas?

What do you do with your Superannuation and/or overseas pension fund?

How do you manage your SMSF whilst overseas?

Answers to your Expat Tax and Financial Questions

When executed well, tax and financial planning for Aussie expats can bring immense long-term rewards and avoid the potential for an unexpected tax-hit. But every person’s situation is unique so in tax and financial affairs, there is no ‘one size fits all’ solution.

Learn about the answers to your questions and the hidden traps to look out for by downloading our
“Overview of Tax and Financial Considerations for Expat Aussies”

DOWNLOAD THE OVERVIEW

Don’t miss the boat on Tax Changes

Subscribe to our on-going podcast series aimed at keeping Expats up to date with the ever-changing tax and financial situation.

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Need Answers Now?

By the way, if you have a burning question or can’t be bothered with reading boring tax stuff, just give us a call on 02 9222 1422 or email service@prideco.com.au

About Pride Advice

Pride Advice and Accounting’s ethos is personalised, high level service to clients who elect to receive a capable and diligent service addressing their financial, investment and accounting needs.

The firm comprises Accounting and Tax which provides accounting services to a range of individuals and business entities, and Private Wealth Management which provides full service financial advice.

The company is wholly owned by AZ Next Generation Advisory and staff, and is backed by Azimut Group, a leading global financial service and investment firm listed in Milan.

Level 10, 88 Phillip Street Sydney NSW 2000 / Tel 02 9222 1422 /
service@prideco.com.au

Pride Advice Pty Ltd ABN 67 133 557 785 and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306

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