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Old Apr 12th 2017, 5:58 pm   #1
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Default NRWT - Savings Tax Non Resident.

Hi.
I left Australia six months ago. Didn't have a UK address at the time as I've been living in Hotels.
So I didn't change my address on my savings accounts. I have not had the 10% withholding tax applied to the interest I have been receiving since becoming a non resident.
Has anyone else been in the same situation.
Apparently there is no option on your tax return to pay this tax owing. I will inform my bank as soon as I get an overseas address. But as my only source of income has been savings interest sourced from savings for this tax year 16-17. I'm not sure what to do. I don't need to submit a tax return as i have had no other income and as my income will be so low then I will owe zero tax.
Any ideas. Cheers

Last edited by sign; Apr 12th 2017 at 6:03 pm.
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Old Apr 13th 2017, 1:26 am   #2
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Default Re: NRWT - Savings Tax Non Resident.

Quote:
Originally Posted by sign View Post
Hi.
I left Australia six months ago. Didn't have a UK address at the time as I've been living in Hotels.
So I didn't change my address on my savings accounts. I have not had the 10% withholding tax applied to the interest I have been receiving since becoming a non resident.
Has anyone else been in the same situation.
Apparently there is no option on your tax return to pay this tax owing. I will inform my bank as soon as I get an overseas address. But as my only source of income has been savings interest sourced from savings for this tax year 16-17. I'm not sure what to do. I don't need to submit a tax return as i have had no other income and as my income will be so low then I will owe zero tax.
Any ideas. Cheers
The ATO will get the details of your interest direct from the bank. You could try and see what shows up on the online Tax Return in July, and do what is required then.

That would be my suggestion. But take note of this: Non Residents pay 32.5c for each $1 of Australian income. There is no tax free allowance.

Other relevant info:
Quote:
Non-Resident Withholding Tax (NRWT)

Banks are required by law to deduct NRWT when an account holder has an overseas home address or when a payment is being made to an address outside Australia or when a non-resident has received a payment on behalf of an investor.

If you leave Australia temporarily and do not set up a permanent home in another country you are generally an Australian resident for tax purposes.
If you leave Australia permanently you are generally treated as a foreign resident for tax purposes from the date of your departure.
Tax residency can also depend on whether the country you are going to or coming from has a tax treaty with Australia.

Advice from ATO
Check if you reported your residency status correctly on your tax return.
If it is incorrect, phone us and we will correct it and issue an amended notice of assessment.

Non Residents pay 32.5c for each $1 of Australian income. There is no tax free allowance.

https://www.ato.gov.au/individuals/i...tax-residency/
https://www.ato.gov.au/Individuals/D...Non-residents/
https://www.ato.gov.au/Rates/Individ...eign_residents
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Old Apr 13th 2017, 9:42 am   #3
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Default Re: NRWT - Savings Tax Non Resident.

Non Residents pay 32.5c for each $1 of Australian income. There is no tax free allowance.

=> Not on interest income, when the rate of withholding tax under the Treaty between the UK and Australia is 10%.
Best regards.
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Old Apr 13th 2017, 10:14 am   #4
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Default Re: NRWT - Savings Tax Non Resident.

Quote:
Originally Posted by Alan Collett View Post
Non Residents pay 32.5c for each $1 of Australian income. There is no tax free allowance.

=> Not on interest income, when the rate of withholding tax under the Treaty between the UK and Australia is 10%.
Best regards.
Cheers Alan, was just about to mention that.
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Old Apr 13th 2017, 10:21 am   #5
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Default Re: NRWT - Savings Tax Non Resident.

https://www.ato.gov.au/Individuals/I...side-overseas/


As I was a resident for tax purposes, for four months I still get a tax free allowance for time spent, see link above. My annual income is well below that threshold for the year, so when I do my tax return, which I will, even though I do not need to, see link below.


https://www.ato.gov.au/Individuals/I...and-royalties/


When I do my tax return, it will show zero tax owing.


So I will inform my banks of an oversea's address, in June, when I get one. So for five full months I will have been receiving interest and not having the 10% withheld, as I cannot inform my banks of any new address as of yet.


The ATO provide no way of paying this tax owed, could I calculate it and pay it as an erroneous payment via my ATO portal? I just don't want to have any tax outstanding, so face fines when I return to Australia. This must be a common problem?
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Old Apr 13th 2017, 10:29 am   #6
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Default Re: NRWT - Savings Tax Non Resident.

Just been in my ATO portal, post tax return for 16-17 will show nil balance owing, there's no option to make an erroneous payment via my ATO portal. Ummm
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Old Apr 13th 2017, 11:04 am   #7
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Default Re: NRWT - Savings Tax Non Resident.

Quote:
Originally Posted by sign View Post
https://www.ato.gov.au/Individuals/I...side-overseas/


As I was a resident for tax purposes, for four months I still get a tax free allowance for time spent, see link above. My annual income is well below that threshold for the year, so when I do my tax return, which I will, even though I do not need to, see link below.


https://www.ato.gov.au/Individuals/I...and-royalties/


When I do my tax return, it will show zero tax owing.


So I will inform my banks of an oversea's address, in June, when I get one. So for five full months I will have been receiving interest and not having the 10% withheld, as I cannot inform my banks of any new address as of yet.


The ATO provide no way of paying this tax owed, could I calculate it and pay it as an erroneous payment via my ATO portal? I just don't want to have any tax outstanding, so face fines when I return to Australia. This must be a common problem?

Telephone the ATO, and ask them to confirm the reference under which you should remit the 10% tax that should have been withheld on the interest you received while not tax resident.

Best regards.
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Alan Collett of Go Matilda. Registered Migration Agent, Number 0102534
Chartered Accountant (UK and Australia). Registered Tax Agent (Australia)
http://www.gomatilda.com and http://www.bdhtax.com
Offices in Southampton (England), and Melbourne (Australia)
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Old Apr 13th 2017, 11:23 am   #8
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Default Re: NRWT - Savings Tax Non Resident.

Quote:
Originally Posted by Alan Collett View Post
Telephone the ATO, and ask them to confirm the reference under which you should remit the 10% tax that should have been withheld on the interest you received while not tax resident.

Best regards.

Okay will do cheers Alan.
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