Financial help for Keith
 

Along long time ago, i was named in a will, my grandfather named me, so i am a man of wealth, but i hope i am never in the situation to accept this wealth as it would mean my grandparent would no longer be with us!

I have a question regarding this scenario, but also this converstaion i had last night with a friend who maybe coming out to the land of Oz.

If you are a permanent resident in Oz, so you pay all your tax here. You have some money in the bank in the UK, you recieve the interest every year after tax, because even though you are no longer a resident for tax in the UK, they will not pay your interest without any tax deduction. So your savings are in the UK, and you have recieved interest for the tax year after UK tax. You have been in Australia for the whole tax year, you have not worked at all in Australia for the whole tax year, you have not recieved one bit of income from Australia, so you have paid no tax in Australia. The only tax you have paid is the tax on your savings interest in the UK, worldwide income, i know.;)

Do you still have to submit a tax return in Australia, stating your only worldwide income is from your UK savings interest where you paid tax to the UK authorities, and paid no tax to Australia authorities. And even when you calculate your like for like tax if you had paid tax in Australia on your savings interest, it would have been less than the amount you have already paid in the UK at the applied exchange rate.

Do you still have to submit a tax return in Australia?:)

This was a beer discussion last night.;)

Thanks for any help Keith:fingerscrossed:

Re: Financial help for Keith
 

If you are resident here for tax purposes (which you would be if you live here on PR) then yes, you would have to submit a tax return to say you have no income except that interest. :)

Re: Financial help for Keith
 

Cheers me mate!;)

Ummmmm! I wasa wrong then, ummmmmmm, appologies are a needed i tinks! Did not think you would need to; like stay at home mums, just some savings in the UK. Ummmmmmm! Ball ache that for stay at home mums then? Well no ball ache for them as they are ball-less, but some kind of ache?:o

Keith:fingerscrossed:

Re: Financial help for Keith
 

The dreaded Tax Pack!

When we were in the UK, my husband had to fill this in as he had a measly $38 in savings in Oz. It was about 50 pages long. You have to do it though, as if you don't, you can be fined "hundreds of dollars" according to my mother-in-law...

Re: Financial help for Keith
 

If your world-wide income is below $6,000 you do not need to submit a tax return in Australia (unless the Commissioner specifically demands one - you'd get a letter in that case)..

And with regards to paying UK tax on bank interest when you are a tax resident of Australia: You can complete a form for your UK bank and they will then pay you the interest gross, i.e. without deducting any tax. The form is called R85 and you can download it here: www.hmrc.gov.uk/forms/r85.pdf

Re: Financial help for Keith
 

I was also about to say that.
They do ask you to fill in a very simple one page form to say that you don't need to lodge a tax return though.

Re: Financial help for Keith
 

If you are not resident in Australia you do not have to do a tax return if you only have Australian bank interest.

Re: Financial help for Keith
 

You mean we went through all that stress FOR NOTHING?!??? Jeez...

Re: Financial help for Keith
 

You have to take some expert advice on this one as it is not as clear cut as you might think and depends on your overall circumstances.

If for example you earned $50k in Australia from employment you would have to do a tax return. When doing the tax return you would have to decalre your foreign investment income EVEN if it was only $3k.