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Off shore working and tax???

Off shore working and tax???

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Old Aug 14th 2011, 12:20 pm
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Default Off shore working and tax???

Hi just a quick question about how the rules apply to taxation. My husband works off shore at the moment, ( we're still in UK), and obviously pays min tax, as only in the UK less than 90 days. What are the rules in Oz? If he remains off shore, what is the time allowed in Oz prior to paying tax? Is it better for hime to be taxed to our UK account and we then transfer his wages each month?? Any help please.
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Old Aug 16th 2011, 1:55 am
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Default Re: Off shore working and tax???

You don't say anything about your visa status.

Bottom line in Australia is - if you are living in Australia and are an Australian citizen/permanent resident, you pay Australian tax on worldwide income.

I thought most UK residents paid tax on worldwide income too.
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Old Aug 16th 2011, 3:42 am
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Default Re: Off shore working and tax???

Originally Posted by JAJ
You don't say anything about your visa status.

Bottom line in Australia is - if you are living in Australia and are an Australian citizen/permanent resident, you pay Australian tax on worldwide income.

I thought most UK residents paid tax on worldwide income too.
Not necessarily. I have worked in SE Asia (Bangladesh, Myanmar, Philippines) and paid local tax (well actually my contract was in tax-paid dollars so my employer paid the tax) and because local tax had been paid on the money there was no tax due in Australia.

When I worked in Saudi, where there is no local tax, I was working on an Austrade approved project which meant again that I didn't have to pay Australian tax on the income.

In general the ATO has a 'no double dip' policy which means if you have paid tax in the country you earn the income in you are exempt from Australian tax - but check the specific case for your husband.
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Old Aug 17th 2011, 4:14 pm
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Default Re: Off shore working and tax???

Originally Posted by KJCherokee
Not necessarily. I have worked in SE Asia (Bangladesh, Myanmar, Philippines) and paid local tax (well actually my contract was in tax-paid dollars so my employer paid the tax) and because local tax had been paid on the money there was no tax due in Australia.

When I worked in Saudi, where there is no local tax, I was working on an Austrade approved project which meant again that I didn't have to pay Australian tax on the income.

In general the ATO has a 'no double dip' policy which means if you have paid tax in the country you earn the income in you are exempt from Australian tax - but check the specific case for your husband.
Thanks Guys, all very helpful. More money for me to spend ;-)
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Old Aug 17th 2011, 9:22 pm
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Default Re: Off shore working and tax???

Originally Posted by shelly23
Thanks Guys, all very helpful. More money for me to spend ;-)
Have you seen the exchange rate? A good wage in the UK can easily become a not so good one in Oz due to the exchange rate being so poor. Factor in the higher cost of living here and you might not have more money to spend, you might end up worse off. Best do some research. Might be easier if Hubby gets a job that pays in Aida$.

Good luck.
obi
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Old Aug 23rd 2011, 10:04 am
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Default Re: Off shore working and tax???

My husband works offshore for a UK company he pays tax in the UK so you don t pay it twice. Only thing is though he gets paid in pounds and his company transfer it to Australian bank and the way the pound is at the moment his wage is terrible to live out here as everything is expensive.
The other downfall is we all had PR visas when we arrived 4 years ago my son and myself have been able to get citizenship but husband is unable as he s out of the country to much (he works 8 weeks on 8 weeks off) so not to sure what will happen when his visa runs out.
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Old Aug 23rd 2011, 6:02 pm
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Default Re: Off shore working and tax???

Originally Posted by ormrod7
My husband works offshore for a UK company he pays tax in the UK so you don t pay it twice. Only thing is though he gets paid in pounds and his company transfer it to Australian bank and the way the pound is at the moment his wage is terrible to live out here as everything is expensive.
The other downfall is we all had PR visas when we arrived 4 years ago my son and myself have been able to get citizenship but husband is unable as he s out of the country to much (he works 8 weeks on 8 weeks off) so not to sure what will happen when his visa runs out.
Thanks for that, never thought about his visa status as will be out of the country so often. All food for thought, he is looking for jobs in Oz, so probably that'll have to be the route for us. Shelly
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Old Aug 23rd 2011, 9:27 pm
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Default Re: Off shore working and tax???

Originally Posted by ormrod7
The other downfall is we all had PR visas when we arrived 4 years ago my son and myself have been able to get citizenship but husband is unable as he s out of the country to much (he works 8 weeks on 8 weeks off) so not to sure what will happen when his visa runs out.
Won't he just get a RRV to cover him?

Isn't there some discretionary thing because he's a PR living with a citizen so he can get the time he spends out of the country considered as time in the country?

I'm sure someone else more knowledgeable will be able to tell you, but it could be an avenue worth investigating.

Here you go - this is the bit I was trying (badly) to describe

Ministerial discretions

The Minister has discretionary powers to vary the residence requirement in the following circumstances, if you will be in Australia at the time your application is decided. If you will be overseas during this period, only discretions 5 and 6 apply.
[blah blah]
6. If you spent time outside Australia and are a permanent resident in an interdependent relationship with an Australian citizen and you have had a close and continuing association with Australia, then that period of time may be treated as time spent in Australia.
Residency exceptions

I think I remember a discussion somewhere about something similar affecting long haul airline staff?
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Old Aug 24th 2011, 1:49 am
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Default Re: Off shore working and tax???

Originally Posted by ormrod7
My husband works offshore for a UK company he pays tax in the UK so you don t pay it twice. Only thing is though he gets paid in pounds and his company transfer it to Australian bank and the way the pound is at the moment his wage is terrible to live out here as everything is expensive.
The other downfall is we all had PR visas when we arrived 4 years ago my son and myself have been able to get citizenship but husband is unable as he s out of the country to much (he works 8 weeks on 8 weeks off) so not to sure what will happen when his visa runs out.
When his visa runs out? He needs to obtain a Resident Return Visa (RRV). Based on the facts supplied, he should not have problems to obtain one.

Regarding citizenship, he should look at:
http://www.citizenship.gov.au/applyi...esi_variation/

Spouse residence discretion won't work, as he is not being accompanied by spouse, but the discretion for offshore resource workers might apply. Look at the details and make your assessment.
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