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Australian Tax System vs UK one...

Australian Tax System vs UK one...

Old Jun 30th 2010, 9:10 am
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Default Australian Tax System vs UK one...

So today we visited an accountant about our first Aussie tax return, and it appears that the tax system over here is quite good, if not better than the UK one, am I being a bit thick in thinking that or is it true!?

Also, maybe some of you accountants can clear this up, I thought because I was at a loss on my UK property (I'm over £100 out of pocket each month) that this could be 'offset' or something against my Aussie tax thingymajigger, he said it couldn't, so where did I get the idea that it could!?
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Old Jun 30th 2010, 10:12 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by Jen1977ni View Post
So today we visited an accountant about our first Aussie tax return, and it appears that the tax system over here is quite good, if not better than the UK one, am I being a bit thick in thinking that or is it true!?

Also, maybe some of you accountants can clear this up, I thought because I was at a loss on my UK property (I'm over £100 out of pocket each month) that this could be 'offset' or something against my Aussie tax thingymajigger, he said it couldn't, so where did I get the idea that it could!?
My understanding is, as long as you are not a temporary visa holder, as of July 2008, any losses incurred from the rental of property outside Australia can be offset against Australian Taxable Income.
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Old Jun 30th 2010, 10:19 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by Jen1977ni View Post
So today we visited an accountant about our first Aussie tax return, and it appears that the tax system over here is quite good, if not better than the UK one.
Whats better, Depends how complicated your affairs are My acct bills us usually for about 20 hours work, obviously we do a bit more than fruit picking but this year there was some major stuff up with refunds, something the acct is actually supposed to ring me back about tonight.....

I know one thing they are better about info sharing than the UK, gov depts share all sorts of info about you, bank interst, property, trips overseas, they know the lot.
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Old Jun 30th 2010, 10:51 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by Jen1977ni View Post
So today we visited an accountant about our first Aussie tax return, and it appears that the tax system over here is quite good, if not better than the UK one, am I being a bit thick in thinking that or is it true!?
I suppose it depends on what you mean by "quite good". It's legalised theft in both countries which ever way you look at it. I doubt Crocodile Dundee would agree that the tax system is quite good! But hey, think of all the good causes your tax goes on:-

UK
MP's expenses
EU contributions and MEP's expenses
Million Pound houses for asylum seekers
World Wide Junkets.
Illegal War in Iraq
Handouts to the workshy
Overseas aid to Mugabee and other African despots.


Australia
$600,000 year pension & expenses for failed PM's
$900 cheques to everyone for doing nothing
$43 Billion on the National Broadband Network white elephant.
Junkets to Copenhagen for 114 people to discuss hot air.

etc.
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Old Jun 30th 2010, 10:54 am
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Default Re: Australian Tax System vs UK one...

etc.[/QUOTE]

UK tax is completely broken and fkd up

Ex employee
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Old Jun 30th 2010, 11:08 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by NedKelly View Post
I doubt Crocodile Dundee would agree that the tax system is quite good! But hey, think of all the good causes your tax goes on:-
etc.
ok, I'll have a crack....
garbage collection, sporting fields ,parks, libraries, kerbs and gutters
water, power, health care, education, transport, Police
defence, immigration, trade, communications, social security and welfare

Taxes, a necessary evil I'm afraid
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Old Jun 30th 2010, 11:19 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by DownUnderPaddy View Post
ok, I'll have a crack....
garbage collection, sporting fields ,parks, libraries, kerbs and gutters
water, power, health care, education, transport, Police
defence, immigration, trade, communications, social security and welfare

Taxes, a necessary evil I'm afraid
I think you will find that you pay for most of those things(garbage collection, sporting fields ,parks, libraries, kerbs and gutters
water, power, health care, education, transport, Police) on top of your tax in your council rates. That leaves defence, immigration, trade, communications, social security and welfare

Well all the defense does is pick up asylum seekers and gives them a warm bed. immigration is paid for by the applicants. Not sure about trade but I think the whole world knows we are a quarry. Communications would be fine if Conjob butted out. That leaves social security and welfare. Guess that's where most of it goes.
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Old Jun 30th 2010, 11:23 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by Jen1977ni View Post
So today we visited an accountant about our first Aussie tax return, and it appears that the tax system over here is quite good, if not better than the UK one, am I being a bit thick in thinking that or is it true!?

Also, maybe some of you accountants can clear this up, I thought because I was at a loss on my UK property (I'm over £100 out of pocket each month) that this could be 'offset' or something against my Aussie tax thingymajigger, he said it couldn't, so where did I get the idea that it could!?
With all the extras we can claim for against tax, it does seem to be pretty good.

I like the Australian system, and have prepared tax returns for a living in both countries.

Regarding your losses, the system changed not that long ago, and not all tax agents keep as up to date as one might hope:
Previously, deductions incurred in deriving foreign income were applied against assessable foreign income of the same class (of which there were four).
Where the deductions exceeded the assessable foreign income of that class, the resulting foreign loss was quarantined from domestic income, and could only be applied against future income of that class.

For income years commencing on or after 1 July 2008, foreign losses will no longer be quarantined into separate classes, nor will they be quarantined from domestic assessable income.
The distinction between what is foreign and what is domestic will be removed for the purposes of applying deductions and prior-year losses.
That is, deductions and prior-year losses that are applied by a taxpayer to reduce their assessable income may include both a foreign and domestic component.
http://www.ato.gov.au/individuals/co....htm&page=5&H5
 
Old Jun 30th 2010, 11:26 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by NedKelly View Post
That leaves social security and welfare. Guess that's where most of it goes.
Correct, and here is the full detail of where our taxes go....
 
Old Jun 30th 2010, 11:37 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by NedKelly View Post
I think you will find that you pay for most of those things(garbage collection, sporting fields ,parks, libraries, kerbs and gutters
water, power, health care, education, transport, Police) on top of your tax in your council rates. That leaves defence, immigration, trade, communications, social security and welfare

Well all the defense does is pick up asylum seekers and gives them a warm bed. immigration is paid for by the applicants. Not sure about trade but I think the whole world knows we are a quarry. Communications would be fine if Conjob butted out. That leaves social security and welfare. Guess that's where most of it goes.
Brilliant rebuttal, especially the Conjob quip
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Old Jun 30th 2010, 11:44 am
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Default Re: Australian Tax System vs UK one...

Originally Posted by Jen1977ni View Post
So today we visited an accountant about our first Aussie tax return, and it appears that the tax system over here is quite good, if not better than the UK one, am I being a bit thick in thinking that or is it true!?

Also, maybe some of you accountants can clear this up, I thought because I was at a loss on my UK property (I'm over £100 out of pocket each month) that this could be 'offset' or something against my Aussie tax thingymajigger, he said it couldn't, so where did I get the idea that it could!?
Hi Jen, Yes it can but it must be an expense i.e. mortgage interest, agent fees, repairs etc...

If your mortgage is not interest only and you are paying capital off as well, you can't claim the capital part. So if the rent covers the mortgage interest and other expenses but not the capital you won't be able to offset that against your Oz income.

Hope this helps.

ABCD's link:-

http://www.ato.gov.au/individuals/co....htm&page=5&H5
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