Tax returns and overseas income
 

An excerpt from an article on tax returns being targeted by the ATO for further checking.

http://www.news.com.au/business/mone...-14327,00.html

Re: Tax returns and overseas income
 

Reading further in the artical, it says that

"He points out that only parents who receive the Family Tax Benefit Part A payment are eligible. He suggests that if the eligible parent doesn't lodge a return, the rebate can't be claimed by the working spouse"

My wife (working) has claimed for this. I (not working) did not and we have lodged. Any advice on what to do - eg wait and see.

We assumed that as my wife was main visa applicant for 176 PR, we used her details when applying for family tax benefit. We were advised that as her details were used that she should make the claim (obviousy my details were entered, but as non earning spouse).

We have received no payments as yet as we elected for end of year lump sum.

On another note, I thought my keyboard was broke when typing this - letters kept being missed as I typed, but it is OK except when using BE. Anyone else noticed that ?

Re: Tax returns and overseas income
 

Also have another question about the $50k earnings. The tax form actually asks if you have assets worth more than $50k, even if no income was generated from them. It seemed to refer to other things rather than cash.

I have entered UK bank interest, but said no to the $50k of assets, even though we have more than $50k equivalent in the UK bank. Any comments on this one ?

I am worried I will get a little flag and they will put us under the microscope - which I could do without. Not that we have any real issues. One thing I did do was that we came over in August 08, so interest paid in UK in April 09 was mostly earned before we came, as rates were 6% or so, falling to 1-2% by October 08. Also we sold the house and had a lot of money (not ours) in the accounts for a while over July 08. So I worked out a pro-rata per month based on BoE rates for the months we were in Oz. According to the arcticle all interest I received in April 09 should go onto Oz tax return for 08-09.

We have paid UK tax on this, so no problem there, but it could take my earnings over FTB limits and we could lose most if not all the part A and part B payments, education rebate (and even maybe stimulus payments?)

Re: Tax returns and overseas income
 

The reference to the above is in relation to the ETR, Education Tax Refund. (Spending on Text Books, Computers etc for the kids)

This must be claimed only by the parent who also claims the FTB, Family Tax Benefit.
The eligible parent can still claim this ETR, even if they don't submit a tax return.

What should have been said in that particular comment in the article is:

Re: Tax returns and overseas income
 

I just rang family assistance office. They said as my wife registered the claim, then she claims education rebate on her return. I made it clear that I was the non-earner, but they were equally clear it was to go on her return.

I rang HR block as we have decided to get them to check my wife's return (mine is too simple to bother with them - apart from the frig I did with the UK bank interest mentioned above) and they agreed with the FAO, ie my wife must claim.

Just seen ABC D's reply that makes more sense, as the article implied the working spouse was not eligible, when in fact the working spouse can also be the FTB claimant and therefore can claim the ETR on their tax return

Re: Tax returns and overseas income
 

Assuming that the ATO does data match with the UK, then you WILL come under the microscope at some stage in the next few years, and who knows what will happen.

Even though UK tax was paid, you should still declare all worldwide income as an Australian resident. UK tax is then offset, against what is due here.

If you wish to avoid being checked on, for possible evasion (in the ATO eyes), I would look into this further, and maybe do an amendment.

If they audit you in say; 4 years time, the penalties, repayments and interest caused by a slight error now, could be expensive.

Re: Tax returns and overseas income
 

I think the most relevant part of that article was this quote:

"We have already seen confusion by parents in claiming the 50 per cent rebate of eligible education expenses,''
;)