pacman65

Hi

Can any of you guys help me. I have been offered a permanent role in Sydney and want to make sure I don't end up broke from tax bills.

On the plus side I have been offered 250K$ total package

I am only 51 but I collect a UK pension of £26K

I also have a SIPP in the UK with around £140k in it.

Did I read understand the tax pages correctly and that I will be taxed at a higher rate being a non domestic resident - will that change after 4 years when I apply for citizenship. Will I have to pay tax on my pension in Aus and at what rate?
Will I also get taxed on any increases in the SIPP value?

Also where would be a god place to live in Sydney. My family will remain in the UK with my wife eventually joining me in a few years time.

Thanks

Phil

bcworld

If you are working in a permanent role in Sydney you will be taxed as resident.

I think I've read that the Hills District is quite religious.

Bermudashorts

I have never heard of a "non domestic resident". I would be just about certain there is no such thing. You are either resident or not. As you appear to have the intention of staying then I would presume you to be resident.

Taxation of pension will depend what visa you will be on. Did you acquire a permanent visa in the past? You will not be getting citizenship in four years if you are coming on a temporary visa btw. It would be nearer to six.

rammygirl

How you are taxed will depend on the visa you are on. At least for your UK income. If you want better answers you will need to provide a little more info about your visa.

Dreamy

How do you work that out, then?

We came on a temporary visa and took our citizenship test just after 4 years in Australia. (Admittedly, the ceremony was another 6 months later because of our local council)

Although you have to have 4 years in Australia, you only need one of those to be as a permanent resident, so it would really depend on when the permanent visa was granted.

verystormy

Sorry to disappoint, but are you being sponsored on a 457 visa?

If so, then you certainly will not be getting citizenship in 4 years. This is a temporary visa.

In order to gain a permanent visa at your age, there are a number of other hoops to jump through including working on a temporary visa for a number of years and earning a minimum threshold of about $130k per year

Bermudashorts

If they are coming on a 457 temporary visa, then as OP is over 50 they would need to do four years on the 457 visa before they could apply for a permanent visa (if employer is happy to sponsor).

Then that visa would take about six months to process. So now at 4.5 years.

Then they have to do another year as a permanent resident before they can apply for citizenship. So now at 5.5 years.

Then the citizenship process will take 6 months or so.

Overall about six years.

pacman65

"Also where would be a good place to live in Sydney. My family will remain in the UK with my wife eventually joining me in a few years time."
Sorry typo I meant good as opposed to God. I want to learn to sail don't mind up to 30 min commute.

rammygirl

Again more info needed. Commute to where? Budget? And you haven't said which visa you are on.

pacman65

The government body are going to organise my VISA and they are talking to the immigration dept to work out which one is best - I am assuming a 457 visa.

The link if it works shows the ref to two different tax rates - scroll down to find foreign residents - no personal allowance and higher rates

https://www.ato.gov.au/rates/individ...ome-tax-rates/

pacman65

Will work in central business district for the rail company. Budget I would rather spend money sharing a place so I guess $400 per week. I could afford more. I don't want a big place to rattle around in by myself.

bcworld

You would not be a foreign resident for tax purposes...that's very clear from your scenario.

pacman65

Thanks that a bit of a relief

Bermudashorts

We are all Brits have have moved to Australia and reasonably familiar with tax matters. Your visa status and your tax status are not the same thing. "Foreigners" are not charged more tax, non-residents pay more tax and don't get the personal allowance. A non resident is somebody who is say on a secondment or travelling on a working holiday visa. You are in a permanent job with intentions of making Australia your home, hence you are resident for tax purposes.

Having said all that, there is a tax concession for 457 visa holders. In that whilst you may be deemed resident, you do not have to pay Australian tax on worldwide income only Australian income. So this is a bonus for you, the UK pensions would be taxable in the UK only whilst on a 457 visa.

Please note my earlier comments on it being at least six years to citizenship and even that is assuming all goes well and employer is happy to support you for a permanent visa after four years.

pacman65

I am looking forward to starting so crossed fingers for the contract coming through and the visa dropping into place. I am almost tempted to bring my \Mercedes SLK but not sure it would not be worth the shipping cost -its a special low mileage model.

Thanks