Tax

[Azbo]

Guys,
I'm thinking of a move to Australia but am concerned about tax. I'm British and an offshore worker so would earn my money outside of Australia in other parts of the world. Does anyone know how I would stand for Tax? Would I be doomed or is there any chance of not being fleeced?

Thanks In Advance.

[onny]

Not sure how you will get a visa to stay here if you're not already an Australian citizen or a Kiwi if you're not going to work here. You can do visitor visa but that will only allow you I think about 3 months stay per year.

The non-resident tax rule has changed and working offshore and being back in Oz for less than 180 days per financial year will not necessarily make you a non resident for tax now. You will get a pretty hefty tax bill.

[Azbo]

Thanks for the reply. My folks are Australian Ctizens and I'm reasonably well qualified so I could either do the family visa or as you pointed out would have to work for an Australian company. However, as much as I love Australia I may be significantly better off staying put? I guess the only other thing that put me off is the price of what I consider decent cars over there. Theres no way I can afford to drive the standard of car I have now over there and I'm really not taken by the Oz selection. However, I love everything else about OZ compared to the UK. The tax is a biggy though.

[5STM5]

In 2007 / 2008, or thereabouts the ATO changed the Foreign Earnings tax rules. I've had a dig around to try and find the notification I received at the time from my accountant but can't find it. Essentially, the ATO declared that foreign earning deductions no longer applied. So as long as you were considered resident for tax in Australia you were liable for full Australian tax. If you worked for any period and paid tax in any other country, this would be deducted from your Australian tax liability.

[Pommygranite]

Azbo said:

Thanks for the reply. My folks are Australian Ctizens and I'm reasonably well qualified so I could either do the family visa or as you pointed out would have to work for an Australian company. However, as much as I love Australia I may be significantly better off staying put? I guess the only other thing that put me off is the price of what I consider decent cars over there. Theres no way I can afford to drive the standard of car I have now over there and I'm really not taken by the Oz selection. However, I love everything else about OZ compared to the UK. The tax is a biggy though.

You might want to check the family visa thing - if you're over 18 it isn't as easy as being given a visa due to family as you're seen as an adult and must standalone as one in what you offer.

My dad was citizen but I still needed to come in on the skilled independent route and even at 29 I only scraped it by 10 point. Of the 110 needed I think my dad was only 15 points worth as a citien/perm resident relative.

If I'm wrong please say so but your work, if in demand, will get you in but perhaps nots the family position.

P.s don't worry too much about the expensive car thing - buy something tasty now in the uk and then come out in 12 months.

[Azbo]

Thanks for your advice guys. I think your both correct on all accounts. I think my only way out would either be on a 3 1/2 year family visa and take it from there once out there or to work for an Australian company which I don't think would be a problem but I'm lucky enough to have a really good job at the moment. Are you guys ex pats? If so ca I ask what you do? I'm an engineer by trader but now work off shore as an ROV pilot / sub engineer

[motomk]

Azbo said:

I'm an engineer by trader but now work off shore as an ROV pilot / sub engineer

Guessing the Northwest shelf would love you! Have the Helicopters going out to the rigs at the moment and a few other moveable rigs ie ships!

One was in the press/court recently over in Perth to do with tax...They were/are laying a pipeline or something. Ok found it from Lateline.
http://www.abc.net.au/lateline/content/2012/s35138...
http://www.abc.net.au/lateline/content/2012/s34815...

Edited by motomk on Thursday 21st June 03:48

[Pommygranite]

Good luck and given your work you should have no worries getting in.

Was a financial planner (hence getting in under skilled independent) but am now a Relationship Manager for the corporate side of a large bank.

[5STM5]

Azbo said:

Thanks for your advice guys. I think your both correct on all accounts. I think my only way out would either be on a 3 1/2 year family visa and take it from there once out there or to work for an Australian company which I don't think would be a problem but I'm lucky enough to have a really good job at the moment. Are you guys ex pats? If so ca I ask what you do? I'm an engineer by trader but now work off shore as an ROV pilot / sub engineer

I entered Oz initially on a 457 but left on a work transfer, and re-entered a couple of years later on a spouses visa and am now a citizen ( but living back in Scotland currently). I am in the oil industry, completion design and production optimisation. From 2004 to 2008 I rotated into Russia from Perth WA, tax there was flat rate 13% with no liability in Oz. When the ATO changed the ruling on foreign earniings it wasn't worth the effort to keep on doing that.

[Azbo]

So you moved from Perth back to Scotland after they changed they're tax ruling? What sort of tax % would you of been paying if you stayed?

[5STM5]

No that wasn't the case. I decided that when the new Foreign Earning tax laws came in, it wasn't worth the effort to work in an "overseas remote" location and be an Australian Tax Resident as the financial benefit was no longer available. I stayed in Oz consulting to an Australian Independant Oil Co until I came back to the UK a year ago. I still consult to that Oil Co albeit through my UK Ltd Co.