Meow

I have looked for a similar question but couldn't find anything so apologies if this has been answred before.

If I am non resident and working overseas, not liable to any income tax and have built up a cash sum from both income and by investment, would I be subject to tax on taking the money into Australia a) in the tax year before returning/becoming resident, or 2) once resident?

I have looked at the ATO website, but couldn't see the answer.

Many thanks

KJCherokee

I can't answer your question specifically, but in general the ATO likes to take its cut of any money that hasn't been taxed elsewhere.

When I worked in Saudi I had to be working on a project approved by Enertrade to ensure that my income wasn't subject to tax when I brought it back to Australia - I was an Australian resident at the time.

You need a good tax accountant to answer this one.

ozhappy981

If you are currently non resident for tax purposes, the ATO have no interest in your overseas income. If you open a bank account in Australia now while you are non-resident and transfer money into it, you will be taxed in Australia at 10% on any interest that money earns. In other words: If (for example) you put $30,000 into the account, you are not taxed on the $30,000 - only on the interest that money earns.

If you return to Australia on (for example) 30 August 2011, and you still have savings overseas, you will then pay tax in Australia on the interest you earn on those savings from that day forward (assuming your total income for the tax year is above the tax-free threshold). As above, you are not taxed on whatever lump sum you have, only on the interest that money earns.