Itís Your Money > Taxes

Australian Non- Residents Tax

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iamjames:
Yep Marty - many companies like google, microsoft, paypal, facebook etc are using Ireland as a loophole to dodge tax. They actually end up paying maybe 5% in some cases. The purpose is to bring in more foreign investment to create jobs. The logic is that the tax is generated from the workers salaries.

On the non-resident issue I think it is only ''earnings'' abroad that would be allowed for non-resident as long as you can produce proof that you have paid tax abroad. You pension or entitlements from Australia would continue to be taxable in Australia.

mikbal:
     I don't know if this helps or is even applicable but it's the only thing I could find on the ATO website:

"Your super

If you are an Australian citizen or permanent resident heading overseas, your super remains subject to the same rules, even if you are leaving Australia permanently. This means you cannot access your super until you reach preservation age and retire, or satisfy another condition of release."

https://www.ato.gov.au/individuals/international-tax-for-individuals/going-overseas/when-you-leave-australia/

Leinster Lad:
Marty,
my understanding is that you are only allowed to "deposit" a certain amount of $$ into your super each year. ( $25K or $30K ??? )
The amount depends upon your age. ( there is a cut off point, around 50 or 55 )
All money deposited INTO your super fund is taxed at 15%.
All "interest" earned on the money in your super fund is taxed @ 15% until you reach retirement age. ( this depends on when you were born ). After that, any earnings are TAX FREE.
This is one of the "loop holes" that the current Govt. is talking about removing.

This is a VERY cloudy subject and you will be well advised to do some serious research.
The ATO are VERY unforgiving !!!!

Lee2:
Here is an article I found that might be worth reading.

--- Quote ---Six tips for paying less tax
http://www.afr.com/personal-finance/six-tips-for-paying-less-tax-20150821-gj4dnt

--- End quote ---

Marty:
Thanks Fellas. FYI I'm 57 born in 1958 and so a lot of the tax and pension perks apply to me with regards to superannuation.

But "all bets are off" as the Federal Government who have been eyeing off superannuation as a potential increased source of tax income are planning on changing the rules, but hopefully they wont be too greedy because the main reason they initially encouraged people into superannuation was to reduce the Federal Governments old age pension tax bills by encouraging more people to become self-funded retirees who only drew a part old age pension or no old age pension at all.

I think it is time I spoke to a Financial Adviser with experience in helping set up expat income streams that minimize tax liability.
Please could the moderators allow people to post recommendations for Financial Advisers in Sydney Australia who have the relevant expertise in this field?

That Transition To Retirement superannuation scheme sounds really cool.
From people I have spoken to say you can work 4 days a week and still earn the same amount as if you were working 5 days a week.
3 day weekends every week sound pretty good to me, I'm just wondering should I take the Friday or the Monday off.

I'm really disappointed that I did not get any concrete advice from Australian Expats on how they avoided having to pay the Non-Residents tax rates. I guess they are either Fly In Fly Out (FIFO) expats (legal) who spend less than 6 months a year overseas or haven't declared their Non-Residency to the tax office (illegal).
At least I got more response than the poor bloke who raised this issue in 2010 on this site who got no replies.

When I find a definite legal solution to my problem I will post the answer here so may be others can use the advice to help them set themselves up financial for retiring and living overseas. But like I said before "all bets are off with regards to superannuation as the rules are about to change.

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