Wandervogel

We are permanent residents in Australia, and we do intend to leave Australia for few years (2 or 3 years). We have our Tax File Numbers and Medicare. What are the tax implications on us when we are working abroad, e.g in the UK?

We do not have any income from Australia while we are abroad, and we do not own any property here either? do we have to pay Australian taxes from our income earned abroad?

Thank you.

ozhappy981

No, you don't. (In the scenario you describe you only pay tax on Australian income. If you have no Australian income - no tax.)

Sherlock Holmes

Hi there and welcome to B.E.

It's my pleasant duty to welcome you to the forum and give you a point of contact should you need any help with the site in general. You can contact me here.

A list of all the moderators and helpers with their relevant countries including Australia can be found here.

I see that your answers have already started to come in...there may be more.

Any problems, dont hesitate to PM me.

Alistair.

Wandervogel

Thank you ozhappy981 for answering my question.

Thank you alistairboyl for your welcome.

JAJ

You didn't ask about visa/citizenship implications ... but you should.

Kim67

You have to not claim any benefits or "live" in Australia for two years to be a non resident for tax purposes. This means that you can't go home for a holiday and go to the doctors and claim Medicare apparently. We've just stayed out of the country for two years to be on the safe side.

OzSheila

These are not the only factors to be taken into account.

Did you take yourself off the electoral register when you departed? What box did you tick on the immi form when you left the country? What was your "intent" when you left the country?

I thought the ATO considered 2 years out of the country to err on the residency side; 3 or more non-residency. I am happy to be corrected.

Kim67

Yes, off the electoral register and ticked the box to say we were leaving to live elsewhere - can't remember what it actually said.

My husband got a lawyer to look into the two year thing before we left Australia and has been in touch with the ATO to make sure everything's okay for the two years before we head back. You can also apply to the ATO to get a private ruling, but it costs, a friend has just been granted permission to spend up to six months of the year in Australia with his kids and remain a non resident for tax purposes. Best to phone the ATO and check your own particular set of circumstances to be sure.

JAJ

The ATO website talks about leaving Australia "permanently".

http://www.ato.gov.au/individuals/co...p=001&st=&cy=1

However, one of the cases on this page suggests that an extended time abroad is effectively the same:
http://www.ato.gov.au/individuals/co...tent/36280.htm