Plug

Hi Folks,

Been in Brissy now for four months and loving it. I know tax assessment time is fast approching and I was wondering how much they tale into account my earnings in the UK for this year?

I worked out a figure with a guy from Centrelink for Family Assistance purposes, is this the figure used by the tax office? During the Oz tax year, I only worked three months as I left my previous job at the end of September 2005.

I'm obviously concerned about having to pay money back if it's been underestimated - how do they check your UK earnings?

Anyone else been in the position where they had to pay monies back? Would be interested to know why......

Thanks.

JAJ

I don't know if Centrelink rules are the same but money earned in the UK before you became Australia tax resident is not normally taxable in Australia.

Wol

I believe that as a sort of concession for those who emigrate during the year, the "overseas earnings" are assumed to be dealt with by the UK, and the earnings made after arrival by the ATO.

Certainly in my own case I talked to the ATO several times and they were happy with my indicating just the income since arrival, not the UK income before entering Oz.

Subsequent years fof course would have to include any UK income since you are now under Australian tax rules all the time.

Plug

Thanks for your answers guys, I was asked by Centrelink for this info when I set up our Family Income Assitance, they based my years earnings on three months in the UK, the remainder was an estimate of my earnings in Oz. Our fortnightly payment from Centrelink is based on this figure, I was concerned that we may have to pay back (which I have no problem doing) if the figures from the UK were wrong, as I was put on the spot when asked for an estimate. Do they check UK earning or do they just go on what you have told them? Thanks for any clarification.

biggy

what u earn in the UK before becoming an aussie resident for tax purposes will be taxed in the UK. I didnt think u had to declare your UK income from before u became an aussie resident....mind you we came into Oz on the 30th June so effectivly we were at the beg of the Oz tax year

Alan Collett

I think you'll find that Centrelink has a different approach to the ATO - the former considers earnings from the 1st of July prior to your arrival in computing the amount of any entitlement to Family Tax Benefit, whereas the latter disregards any income or capital gains arising before you became a tax resident of Australia in computing your Australian assessable income.

Best regards.

Plug

Thanks again for your response, I'm still at a loss as to whether I will need to declare that I was out by about $10k on my predicted earnings that I gave to Centrelink. Will they be able to check what my earnings were in the UK in Jul/Aug/Sep of 2005? I started work in Oz in December so that estimate is accurate.

Also, just noted that I'm in for a 1.5% bill for medicare!!

donna

We estimated then had to provide evidence at the end of the year.They have a thingamijig that tells them what the exchange rate was on each month we earnt in the uk.Centrelink wouldnt pay out until we had provided the exact amount.
Good luck
donna
They also give you about 600 dollars per child but it is pro rato.?(spelling)and dependant on which wage category you are in.We also had to declare some pretty hefty bank interest as we had our house sale money sitting here a while whilst we built(the bank provide a print out for you at the end of the year.)