ScottJackson

Someone in the merchant navy could really help me here!

In england we have the 183 day tax rule, which means if your working outside of england for over 183 days in a tax year, then you do not have to pay income tax.

I was wondering if this rule applies to Australia as well?

I have looked long and hard on the tax website and can't seem to find it anywhere (spent about 2 hours today and 4 hours yesterday) so I cant continue lookin on a tax website any longer haha!

CaptainMerton

Its 183.5 days in Australia so on the 183rd day most people work till noon, fake illness then go for a long liquid lunch for tax reasons.

ScottJackson

I think if I leave the ship any earlier than the 183.5 days, ill stay in whatever country i get off in for a couple days till my time has ran out haha! thanks for the info!

Geelong Gent

The 183 days is used for determination of tax residency. You are deemed to be non resident once you are out of the country for a period greater than this.

This rule is used throughout most countrys (all countries with double tax agreements with UK & Australia)

However there is something about returning within 3 years that people should watch out for. There were some KPMG guys that got caught out returning from Hong Kong after 2 years. Not sure exactly the facts but it was along the 183 days needs to be in a complete tax year ????

spartacus

Keep it clean please! Ladies present.

mand8002

The 183 day test for tax residency is only one of the tests, there is also the domicile test which looks at where your family are, your main residence and assets etc so even if you worked overseas for longer than 183 days but your family were here and you had no home anywhere else then you would be classed as resident.

ScottJackson

Im not entirely sure how it works in England. But I think I don't get taxed as I only work six months a year, and that six months I am working out of the country, therefore I dont work in England. The other six months I have off I don't work at all. I'm still classed as living in England, I just don't work here at all. I still have to pay NI ofcourse, just not income tax.

Geelong Gent

Domicile is different to tax residency

Order of tests has always been
183 day test
main residence
main income earning activities
I have never seen any mention of family

Alan Collett

Is the original question being raised in the context of "what do I have to do to avoid being a tax resident of Australia?"

If so, the OP should be aware that there are qualitative issues to be considered, as well as quantitative ones. For example, the first test to consider is whether the individual taxpayer "resides" in Australia based on the normal definition, being: " ... to dwell permanently, or for a considerable time, to have one’s settled or usual abode, to live in particular place ...":
http://www.ato.gov.au/individuals/co...tent/36255.htm

Best regards.

Alan Collett

PS. Some useful examples are here:
http://www.ato.gov.au/individuals/co...tent/36280.htm

Note that there is a different slant on a tax resident of Australia who is asserting non residency, as compared with a non tax resident who is considering whether s/he is a tax resident as a consequence of his/her actions and intentions.