I am sure you are all hanging on the edges of your chairs for my budget update. So putting aside the removal of the baby bonus, which has been done to death in the media (and in my opinion was about $1m short of an incentive to have more children), here are some other, perhaps more important,… Read More Budget Update 2013
Recent changes to Australian tax legislation significantly increase the potential tax for non-residents. Non residents have always been penalised by not being able to access the tax free threshold, now they also have the joy of higher rates as well. But less talked about, in a clever twist on the ATO’s part, the CGT 50%… Read More Capital gains tax for non-residents
THE NON COMMERCIAL LOSS RULES JUST BECAME HARDER TO PASS. As you will no doubt be aware, if you run a loss making business as a partnership or a sole trader, the loss may be set off against your other income, reducing your overall tax liability. In order to prevent individuals setting up businesses that… Read More The Demise of the Hobby Farm?
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… Read More 457 Visa – Special Tax Rules
Prior to 1 July 2009, section 23AG ensured foreign employment income derived by an Australian tax resident in respect of overseas work assignments, which were longer than 91 days in duration and taxed in the overseas country, were exempt from Australian tax. Note that the exemption was only ever available for those who were Australian… Read More Article: 23AG Explained
Dear All, Another month goes by as we hurtle towards Xmas at an alarming rate. In the interests of sharing the Xmas spirit, this month’s Reflect has a bit of investment, a bit of tax chat and a special Xmas surprise at the end! Investments first, don’t forget the FLEXI 100 is closing soon. We… Read More November Reflect
Taxpayer Australian Resident for Tax Purposes – Bezuidenhout A taxpayer who was employed overseas, as a pilot, by a foreign employer, has nevertheless been found to have been an Australian resident during the relevant income years. He was therefore assessable in Australia on his foreign-earned income. The taxpayer worked overseas as a pilot. He was… Read More Commuters Beware
Since the introduction of s775 the general answer is, yes foreign exchange gains are taxable, and conversely foreign exchange losses are deductible. There are a range of exemptions and elections that can minimise or remove some gains or losses. The rules are relevant to all taxpayers and often have consequences for expats with foreign currency… Read More Are Foreign Exchange Gains Taxable?
This is harder than it may first appear at first glance… First, you are allowed a tax credit for foreign tax actually physically paid by the time your Australian tax return claiming this credit is lodged. Second you can only claim a credit for tax paid on the income actually included in the Australian tax… Read More How Do I Claim a Credit for Foreign Tax Paid?
Well, if you are a permanent Australian resident then the answer is a resounding yes. Although there is a double tax agreement between the UK and Australia, the devil as always is in the detail. The agreement states that where rental income is derived in the “other” country, which in this case would be the… Read More Do I Have to Pay Australian Tax on my UK Rental Income?
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