Discovery

I have agreed to continue working for my current UK employer when I move to Australia early next year. I understand that I will need to set up a company but I am not sure whether this has to be registered in the UK or Australia.

Does anyone know what the position is regarding Australian taxation if I leave the income from the work in my UK bank account?

neil248

I work for my old Uk employer via e-mail. We are permanent resident so are registered with the Australian Tax Office for tax and have no liability to the UK. I am paid in UK pounds into a UK bank account which I have been told is not a problem. The only slight issue is changes in the exchange rate meaning you can be taxed on any increase between when you were paid and when you eventually bring the money over. As a sole trader I think the only thing you need is an ABN number which is your registration and is applied for on line plus of course a tax file number and an accountant.

leigh&ivan

Hi,

The best advice I could give is look into the situation for Freelance employees.

I deal with freelancers in my line of work and there are many variations on how to do this.

If the work for the U.K Employer is full time then I would look into setting up a PTY ( Oz version of a LTD company )- You will then be able to minimise the Taxable part of the funds earned, however if this isn't your main source of income then I would set up the company in the U.K, as a Limited or Umbrella organisation then just reap the rewards of the great exchange rate in money transfers. You will then only have to pay the daft bank charges involved in that.

Hope this helps