Kiwi-Irish

Does anyone know, if I'm living in Australia (as a NZ resident on a NZ passport) and working there normally as a PAYE'er but have properties rented out in the UK (where I've been living for the last 16 years) if I have to pay tax in Australia on the joint accumulation of earnings, or whether I have to pay tax for my normal day job in AUS, and separately in the UK on the earnings made there on the rental income - so a double taxation. Also, to note, the income from the rental properties falls under the personal allowance of £9k approx.
Please can someone advise?

EvannTel

As an Australian resident for tax purposes you declare your
UK income as part of your Australian tax return.

Bermudashorts

Well if it is below the tax threshold in UK then you won't be paying tax there, so it is definitely not double taxation! If you did pay tax in UK, then you would get that amount as a credit on your Australian tax return, which would avoid the potential doubling up. But it does need to be declared on both tax returns.

Just one caveat, holders of some temporary visas don't have to declare foreign income in Australia. I don't think you would be exempt but do t know for sure.

Buzzy--Bee

New Zealanders living in Australia do not have Australian permanent residency unless they lived here before Feb 2001. As temporary residents, any income earned overseas is not taxed in Australia.

BB

Almo

I was always under the impression that kiwis in Aus are treated as permanent residents for tax purposes? And in fact for other purposes such as the inability to take super out of the country, unlike true temporary residents.

RedDragon2008

Nope

Don't confuse domicile status with residency status

Almo

Well you learn something new every day! So a kiwi citizen who lives full time in Aus on an SCV is not a permanent resident for tax purposes? Fortunately I never had any overseas income so it wouldn't have mattered but slightly alarmed that I never knew that wasn't the case.

Anyway who tells me I can take my super out will make my day

Kiwi-Irish

Thank you all very much. Its such a hassle having two houses in London to be honest. My parents keep saying 'sell them', but I strongly suspect properties to be going up, and that they will continue to do so for the next 3-5 years. So hoping to hold onto them for a short while and get some capital gain. But with that, comes that 'handbrake' of a hassle...

I'm moving to Sydney permanently in 19 days! I'm extremely excited and can't sleep through the night.

Bermudashorts

There isn't really any such thing as "permanent residency for tax purposes". For tax purposes one is either resident or not, most people living here on anything but a transient basis is tax resident.

There is however one slight concession to holders of some temporary visas as I mentioned in an earlier post. Personally, I am not sure if this concession applies to NZ citizens, however I think BB is married to a Kiwi so he could very well be correct.

Almo

Cheers, as I said, you learn something new every day!

I only use the phrase as that's what the ATO uses on etax - well, the question is actually 'are you an Australian resident for tax purposes?'. I know because I went through the questions recently when submitting my tax return after leaving Australia.

Bermudashorts

It was the "permanent" bit in your post that I was commenting on. This is a visa term, but for tax it is typically just resident or non resident.

Almo

Of course! You know when you're so used to words going together you don't even recognise that they can stand alone?

I feel somewhat silly now

Buzzy--Bee

It applies to all NZ citizens who are not permanent residents. Any who arrived after Feb 2001 and have not been granted permanent residency under any other visa class would fall into this category.

I am married to a Kiwi, but she is also an Australian citizen so this does not apply to her personally.

And yes, NZ citizens who are on SCV TR444 can also remove their super from Australia, but there is a hell of a process involved in doing this as it has to be transferred into the equivalent Kiwisaver scheme, and the Australian pension providers are not co-operating well with this.

BB

JAJ

Although as far as I am aware, it does not apply to someone who is the spouse or partner of an Australian citizen or permanent resident. So a New Zealand citizen with an Australian spouse, who chooses not to apply for a permanent visa, does not necessarily obtain this tax benefit.

There may well be other exceptions to eligibility, also there is certain overseas income that remains taxable.

RedDragon2008

The marriage or relationship only provides evidence that a case for domicile is stronger with Australia. Case by case determines whether this can be challenged.

To be taxed on world wide income you need to be determined as tax domicile. Having PR, a property you owner occupy, significant investment holdings assist in this determination. But its not necessarily a yes no answer.