ezzie

I need to open a UK bank account or offshore account in Sterling. I approached NatWest & Jersey offshore and it appears that anyone in the world is allowed to open an offshore account - except anyone with an Australian address! It's all to do with the Aust. Corp Act 2001 apparently.
But, HSBC have said they can open one for me, but it pays no interest and will cost me $200 in fees to open. So how can they escape the dreaded Aus. Corp Act?

Can anyone shed any light on this, I urgently need to open a Sterling account?

Steve2009

I googled your problem and this was one of the links that was returned:
http://www.expatmoneychannel.com/con...g-while-abroad

Here's the google search:
http://www.google.com.au/search?q=au...shore+accounts

Max&Ozzy

I have an Anglo Irish Acc in Isle of Man and a Skipton International Ltd in Guernsey (part of HSBC Int) all opened from here in Aus, both paying interest, optioned as gross. Both will supply an annual interest statement for the period relevant for Aus financial yr end tax returns.

Steve2009

Just make sure that the interest income is included in your Australian tax return if you are resident in Australia for tax purposes. Australia taxes on all income of residents regardless of source.

Rambi

If you are PR. I wonder when people point this out, whether or not, they think it's exceptional. It's the same rules as the UK so I wonder why it seems to come as a surprise to some. Just wondering.

Steve2009

The ATO definition of resident is very different to the immigration one. WHV holders will usually be resident for tax purposes in at least one year if they use their full visa. In reality I doubt very many WHV holders are declaring their savings interest from the UK.

Rambi

WHV don't pay tax on off-shore investments so there'd be no point declaring savings interest from the UK.

Steve2009

Yes, that's true actually. I wasn't thinking of the exception to the 183 day rule. WHV holders also do not benefit from the $6,000 tax free threshold.

Students here for more than 6 months are considered resident though and anyone living here for a substantial period of time including 457 holders.

Rambi

I don't reckon 457 holders pay tax on their overseas' earnings either.

Steve2009

I should know this stuff without looking but have just had another look at the rules, essentially if you want to claim you are non-resident for tax purposes and you are earning over 37,000 dollars in taxable Australian source income it is going to cost you $6,080 in extra tax for the privilege. 457 holders may get away with claiming to be non-resident depending on their circumstances. It depends on how much you are earning overseas whether you want to claim to be resident or not I guess, and you will most likely be taxed on that income in your domicile anyway.

Rambi

You're talking about something else here. I'm not suggesting that 457s are not domiciled. They are tax resident and have to fill in a tax return. But I believe they don't have to declare overseas' income (or even overseas' earnings if they earn it whilst outside of Aus).

Anyhoo. As to my original question. Does it come as a surprise to people that Aus taxes all the income of PRs given that the UK rules are the same (and I suspect Ireland is the same - just for you Steve )?

Alan Collett

The UK's tax rules in this regard are not the same as Australia's: the UK still has special provisions impacting non-UK domiciled individuals who are resident in the UK and who are in receipt of overseas (ex-UK) source income and capital gains.

Such persons can choose to be taxed in the same manner as UK domiciled individuals, but they can also choose not to be ...

Best regards.

Steve2009

You can't have it both ways. You are either non-resident and taxed at a higher rate, or you are resident and declare all income worldwide. I am open to correction (especially as it may help my grades) on this but this is my understanding from my tax exam preparation.
It's not a surprise that PRs are taxed, although it always seems to be to some people. As a non-PR myself this is not applicable to me, and therefore the situation for temporary residents is of more interest and maybe more surprising for some (yourself included apparently ).

Alan Collett

http://www.ato.gov.au/individuals/co....htm&page=3&H3

Best regards.

lesleys

Holders of certain temporary visas, whilst being tax residents in Aus, do not have to declare overseas income or gains. There are of course terms and conditions so don't assume anything.