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Old 07.07.2009, 17:11
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australia tax residency (or not)

Hi

I am an Australian citizen, I've been here (Zuerich) since November 08, and I work with an L visa. I plan to stay at least another year.

I was studying in Australia before I came here, and the only earnings I've had since March 08 were share dividends and interest on bank accounts.

I was wondering if anyone here is from Australia and whether they can tell me whether I'm a resident of Australia for tax purposes.

Cheers to all the accountants out there!

Greg
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  #2  
Old 07.07.2009, 17:16
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Re: australia tax residency (or not)

You've probably already tried the "Am I a resident for tax purposes" wizard on the ATO website, but in case you missed it...

http://calculators.ato.gov.au/script...dent.XR4&go=ok
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Old 07.07.2009, 17:41
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Re: australia tax residency (or not)

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Hi

I am an Australian citizen, I've been here (Zuerich) since November 08, and I work with an L visa. I plan to stay at least another year.

I was studying in Australia before I came here, and the only earnings I've had since March 08 were share dividends and interest on bank accounts.

I was wondering if anyone here is from Australia and whether they can tell me whether I'm a resident of Australia for tax purposes.

Cheers to all the accountants out there!

Greg
Upon leaving Australia, did you tick the box that you were departing Australia permonantly?

You still need to submit an Oz tax return if you had earnings there unless your share dividends are fully franked AND your bank account interest has witholding tax taken out.

Non-residents get no tax free amount too and you can't carry losses in one year forward unless you make a worldwide loss.
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Old 08.07.2009, 09:25
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Re: australia tax residency (or not)

Great thanks everyone. I did try the ATO calculator but the questions were so ambiguous that I needed a second opinion.

Not sure about ticking that box. Probably not.

I guess I'll check out my dividends. I'd be surprised if they were all fully franked.

What are the implications of having income in Switzerland as well, when I have to do an Australian tax return?
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Old 08.07.2009, 09:36
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Re: australia tax residency (or not)

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What are the implications of having income in Switzerland as well, when I have to do an Australian tax return?
As long as you are not an Australian resident for taxation purposes, you simply submit your Oz tax return without your overseas earnings.

Did you put your share dividends on your tax return last year? Did you also claim the franking credits? Telstra shares are fully franked for example, so you are not required to include them in your tax return as a non-resident.
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Old 08.07.2009, 14:25
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Re: australia tax residency (or not)

Yeah, I did have non-fully franked shares on my tax return last year.

And unfortunately I'm pretty sure I'm still holding the same shares.

What happens if I have to declare my worldwide income?

Will my income here be taxed by Australia as well?

BTW - thanks for the help!
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Old 08.07.2009, 14:32
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Re: australia tax residency (or not)

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What happens if I have to declare my worldwide income?
As a non-resident, you don't enter your overseas income on your Oz tax return. It says this in the Tax Pack.
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Will my income here be taxed by Australia as well?
Only if you are an Australian resident for taxation purposes.

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BTW - thanks for the help!
You can press the thanks button
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Old 09.07.2009, 10:06
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Re: australia tax residency (or not)

Ok but if I am a resident for tax purposes, then do you now how heavily I will get taxed on my worldwide (swiss) income?

Do I get taxed at the same rate as I would in Australia after currency conversions etc?
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Old 09.07.2009, 12:47
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Re: australia tax residency (or not)

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Ok but if I am a resident for tax purposes, then do you now how heavily I will get taxed on my worldwide (swiss) income?

Do I get taxed at the same rate as I would in Australia after currency conversions etc?
Yes, as an Oz tax resident you be taxed at Australian tax rates less Swiss taxes already paid.

If you left Australia permonantly and don't go back and live there for more than 183 days in any tax year they can't can class you as a tax resident. They ask when you enter Australia what your visit is for - just tick temporary, and as long as your intentions are to live outside the country for a few years and you don't break the 183 day rule there is no way they can class you as a tax resident.
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Old 09.07.2009, 14:09
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Re: australia tax residency (or not)

Awesome. That's what I read somewhere.

So that overrides the fact that I have shares/bank accounts etc there as well?
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