Those here on a 457 business sponsored visa are very lucky indeed – and lots of them don’t know it!

There are several tax benefits available to this class of visa since the introduction of the “temporary resident” rules in 2006/7.

The rules mean “temporary residents” are effectively only taxed on Australian sourced income for up to 4 years, or until the point at which they apply for permanent residency, buy a house or marry an Aussie!

You avoid the nasties, no need to declare foreign income (e.g. your overseas rental property) and no CGT on non-Australian assets, yet you get taxed at resident tax rates and have the potential benefit of being able to receive a tax free living away from home allowance (LAFHA). Note that the LAFHA is in transitional rules since the 2012 budget release.

Do watch your superannuation; many of the strategies used by residents don’t work for temporary residents e.g. transition to retirement strategies. Additionally, although temporary residents can access their super on departure, significant tax normally applies on withdrawal. This may negate any prior tax benefits from salary sacrifice and non-concessional contributions made in the past.

Tax will never be this good again, so contact me to ensure you make the most of it!