dan.pipe2014

Hi,

I have an Australian residency since 2 years. I already got Tax Number during my first entry. I have the following questions.

- Do I have to pay taxes to Australian government on the income I earn in Middle East? I have only done the first entry, still I haven't gone to Australia for settlement.

- If I transfer all my money from Middile East to Australian bank, will I have to pay them taxes or duties over that transfer? What will be the complications?

Thanks for help.

Bermudashorts

You should not have applied for a tax file number on your initial entry, that was a mistake because it now might lead the tax office to expect a tax return.

Having a permanent resident visa does not make you tax resident, they are two different things. You should not have to do a tax return, however because you applied for a TFN, you might get chased up for one..

dan.pipe2014

That's scary, can you advise what should I do now?

dan.pipe2014

I am very upset now; it has been like 2 years since I came back from first entry,

dan.pipe2014

Can you pls advise what can I do in this situation? Its already 2 years since I came back from first entry. Now, I have decided to move to Australia .... Please tell as I have to apply visa for my wife as well.

dan.pipe2014

Anyone?

dan.pipe2014

Thankfully, I consulted an accountant & digged internet myself, following are my findings. I'm not an Australian Resident for Tax Purposes. As a result, no taxes apply.

Australian Resident for Tax purposes is based on the period one spend in Australia (6 months or more). It doesn't depend on whether you have been issued a TFN or a MedCare Card.

Taken from ATO website:
Generally, you will be an Australian resident for tax purposes if any of the following apply: you have always lived in Australia or you have come to Australia and live here permanently; you are an Australian travelling overseas temporarily and do not set up a permanent home in another country; you are an overseas student who has come to Australia to study and are enrolled in a course that is more than six months long; you have been in Australia continuously for six months or more, and for most of that time you worked in the one job and lived at the same place; or you have been in Australia for more than half of the financial year, unless your usual home is overseas and you do not intend to live in Australia.

The Bloke

Why would it be a mistake for the OP to get a TFN?
As the OP wanted to open an Australian bank account, he would need a TFN. If you don't have a TFN, ABN or TFN exemption registered against your account, or have an overseas residential address, you are, by law, charged withholding tax. https://www.commbank.com.au/support/faqs/598.html
As far as I can see, until taking up full residency for tax purposes, the only tax payable would be for is on the interest earned in the account/s, which until it exceeds the total income threshold, would be refundable.

louie

BS didn't say you were a tax resident, clearly you are not. Her point was the fact that you had applied for a TFN might have led the ATO to expect you to be completing returns.

So as he is resident overseas, withholding tax SHOULD be being charged. Such income is then not taxable in Australia so there would be no refund, but even if it was, as a non-resident he wouldn't have any tax free allowance, so there would be no refund in any case. So no point in applying for a TFN until you move to Australia.

Pollyana

A) take note of the replies you got

B) learn some patience. You were posting in the early hours of the morning Aus time. You only needed to post once and you would have got answers when people woke up.

Bermudashorts

I have explained why, because it might lead the tax office to expect a tax return and then you have to engage in pointless and unnecessary dialogue. There is no requirement to have a TFN in order to have a bank account and in any case OP has not mentioned having a bank account in the first post.

Alan Collett

https://www.ato.gov.au/Forms/Non-lod...dvice-2013-14/

Liaise with the accountant with whom you have spoken about submitting a Non Lodgment Advice for the Aus tax years when you have not (yet) submitted a tax return.

Best regards.

dan.pipe2014

Thanks for the guidance.
I lodged the taxes for 2 years and ATO has sent a confirmation after 2 weeks. Now I am up-to-date on ATO records.
For the new arrivals, please don't apply for tax number if you wish to settle later after some years. If you apply, then you have to lodge a tax application. You will be Non-Resident for tax purposes in this case and will have no tax. However, you still have to update the ATO records.

Thanks again to all of the experienced forum members.

Flames123

Did you manage to get an answer on ur original question?
Will you be taxed on the amount you bring in to Australia?
Also, if a resident is residing in Australia and has accounts overseas wherein he gets interest from deposits- will that be taxed? What is the percentage of taxation?

louie

No

Yes if on a permanent visa. Rate depends on your other income and whether any tax has already been deducted at source/paid in the other country.