Tax Advice For Australians Relocating Abroad

Taxation can be a complex and perplexing process for Australian ex-pats who move abroad; depending on where you live and the kind of income you receive, the laws are varied. For instance, if you continue to be an Australian tax resident while residing abroad, you may be subject to taxes in  Australia and your country of residence. No matter what your situation, it’s crucial to understand the fundamentals of tax law to avoid being caught off guard.

Here is some tax advice for Australian ex-pats to help you:

Australians Living Abroad Are Subject To Taxes.

If you can show that you cannot pass any of Australia’s residency requirements after moving to another country, you will be deemed a “non-resident.” Regardless of Australia’s regulations, you will be subject to that nation’s tax laws if you are regarded as a resident of the country you are now in.

When relocating abroad, it’s crucial to learn whether you must declare your income and register for taxation in the new nation. You might need to include Australian revenue in your overseas return if the other country taxes your worldwide income. For instance, your rental revenue in Australia.

Tax Rates, Tax Credits, And Income

The first thing to understand about taxing is that it depends on the kind of money you bring in if you decide to be a non-resident in Australia for tax purposes.

Regardless of your tax residency status, the income will be taxed in Australia if it is deemed Australian-generated income, such as revenue from an Australian rental property.

Australian tax rates are tier-based and range from 32.5% to 45%. The lack of a tax-free threshold for non-residents, which means that you will be taxed at a rate of 32.5% starting with your first dollar of income, is another crucial point to be aware of.

Expenditures And Deductions

Remember that you will no longer be allowed to deduct the costs you incurred to produce certain types of income if you are a non-resident, and you are not obligated to declare that income in your return.

Moving Abroad?

Understand the tax implications! If you’re an Australian ex-pat, you might be curious about the taxation of your foreign income. Your foreign income won’t be subject to Australian taxation if you decide to become a non-resident. However, you will continue paying taxes on your worldwide income if you remain a resident. Other issues include tax treaties, which can change the standard tax laws for some forms of income.

Need Help?

Make an appointment with KPG Taxation at the branch closest to you for professional tax advice and to handle your accounts correctly. Ask our tax professionals to estimate your refund and receive advice on maximising your returns. Call us now!

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