jamesegrant

I have an offer under consideration on a four year 457 visa which should also have LAFHA with it for a move to Perth and in doing all the sums at the moment the offer appears only to be worthwhile if I rent out my UK house. If we don't rent out the house through choice or lack of tenants or if it is rented out and there are breaks in the rental then I lose money and its therefore not a worthwhile offer. In addition we would like to come back to the UK once a year (family of 5) and would have those travel costs to meet as well

Does anyone know of any tax breaks to help here on both the house side and the travel side and whether anyone has experience of their employers offering solution for this type of issue such as paying your Oz property rental/flying you back home yearly.

Fell free to PM me on this and many thanks for any help

DianneH68

Sorry can't help on the tax side of things.
We are also going on a 457 in four weeks (if we have the visa by then ) and will be renting the house out.
We have already arranged a tenant through an agent, but they are a bloody rip off and we will not be getting an agent to manage it for us
They want basically a month's rent (8.3%) plus VAT just to find you a tenant, but 15 % to manage it :scared:
There's not even any guarantee they will do anything for that 15% as you're not going to be there to check!
So if you do go down the rental route, just give contact details of a friend/neighbour to your tenant, along with a couple of trusty tradesmen who you've used for any plumbing/electrical stuff. Give said friend/neighbour a set of keys and get them to do an inspection every six months.
Will save you plenty of money.

As for flights, if you want to come back each year then just keep booking returns from the UK with the flexibility to change the return date any time within 12 months.
This will be much cheaper than booking flights in Oz.

Good luck with it all

chels

I think you should consult an accountant with knowledge of the Australian tax scheme. There may be expenses etc you could deduct from your yearly tax return. Do a search or contact Alan Collett, he should be able to advise of someone.

northernbird

A trip home once a year is going to cost you $10k+ without the loss of wages whilst you are there. It would be cheaper to pay for your rellies to come here. Don't know about the rental thing, sorry James.

Grayling

Don't know about tax breaks but you will be liable for Australian tax on the rental income from your house.

As said....best see an accountant

G

Bix

If you are renting in Aus your UK property remains your main residence so is not classed as an investment property....not taxable in Aus.

You will still be living in a Commonwealth country so can claim the full tax allowance in the UK. If earnings from your UK rental, less expenses, do not surpass your allowance you will not pay UK tax.

Register with the UK tax NRL (Non Resident Landlord) authority and you will not have tax deducted from the income at source which a letting agent is obliged to do without the NRL approval.

Grayling

Ey up Bix

All overseas income is liable to Australian tax. That includes rental income but not CGT.

Whether or not some of it is eligible for exemptions is another matter

G

JAJ

And there are significant exemptions for temporary residents with effect from 1 July 2006.