Tax matters

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Old Jul 12th 2010, 3:35 pm
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Default Tax matters

Hello guys,

We came on PR visas. Just wonder if I return to London for work (better pay) for another year while leaving my wife and children behind in Australia. Do I need to pay Australian tax too if I just come over for short holidays during the year? Will wife be actually qualified for unemployment benefits if she stays home as a fulltime mom? (Just a weird thought!)

Thanks for any advice.
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Old Jul 12th 2010, 3:40 pm
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Default Re: Tax matters

Originally Posted by Dylan T
Hello guys,

We came on PR visas. Just wonder if I return to London for work (better pay) for another year while leaving my wife and children behind in Australia. Do I need to pay Australian tax too if I just come over for short holidays during the year? Will wife be actually qualified for unemployment benefits if she stays home as a fulltime mom? (Just a weird thought!)

Thanks for any advice.
Australians pay tax on world wide income...but more exact advice will be along I'm sure.
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Old Jul 12th 2010, 3:58 pm
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Default Re: Tax matters

Originally Posted by Dylan T
Hello guys,

We came on PR visas. Just wonder if I return to London for work (better pay) for another year while leaving my wife and children behind in Australia. Do I need to pay Australian tax too if I just come over for short holidays during the year? Will wife be actually qualified for unemployment benefits if she stays home as a fulltime mom? (Just a weird thought!)

Thanks for any advice.
Can't advise you on the finer details, but you will only get taxed once - if you are taxed in the UK you won't be taxed here and vice versa. However any benefits would depend on worldwide income (assuming you have been here long enough to qualify in the first place).
Probably best to get professional advice from someone familiar with taxation in both countries. Alan Collett, the migration agent who posts on here, might be able to help, I know his company is involved in financial advice as well (Go Matilda).
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Old Jul 12th 2010, 6:49 pm
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Default Re: Tax matters

With your main home and family in Australia and you coming back for visits, I would guess that you would still be Australian tax resident. I think you should consult an accountant on the matter though as it is quite technical and will probably come down to counting days in and out of the country.

I also think it is a bit of a moot point tax wise, you will pay either UK or Australian tax on all your income.

Are you really sure this would make financial sense? You would have to be earning a fair bit more in UK to compensate for running two places to live and of course the £ sent back to Australia does not go as far as it used to. Not to mention the emotional cost of being separated from family.
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Old Jul 12th 2010, 10:08 pm
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Default Re: Tax matters

Having PR visa doses not necessarily mean you are resident for tax purpose. Please read the below link for criteria.

http://www.ato.gov.au/individuals/co...tent/36280.htm
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Old Jul 12th 2010, 10:31 pm
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Default Re: Tax matters

You would have to choose your tax residency and declare yourself to that entity when you file the return. If you are remaining as UK tax resident you would pay it there and declare your australian assets on that return. Your wife would have to file her return here and the fact you are married you would be linked in your return and your combined income assessed for benefits regardless of location etc.

Agree you should see an accountant of FA. At the end of the day you should be doing this for a better life, not because you can get $100pw in benefits

One further thing - there is a restriction on new PR residents on claiming Centerlink benefits anyway for at least 2 years - may be longer
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Old Jul 13th 2010, 1:37 pm
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Default Re: Tax matters

Thanks heaps for the information and advice, will surely see an accountant to avoid subsequent disappointment!
Cheers!
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