GTE/boggabri

I am an Australian citizen living in the USA. My wife is a US citizen. We are both
retired professionals with a moderate income and wonder what would be our exposure to
Aust'n Income Tax for our investments and retirements in the USA should we return to
Oz and take up permanent residence? I have downloaded the Aust'n Tax Forms, but am
not sure about many of the definitions of income. I have received conflicting reports
from several 'tax specialists' and wonder if anyone could refer me to a reliable
source of 'the good oil'. Thanks Boggy

Alan Collett

Hi Boggy.

Visit the following website and request the factsheet on Investments Held Outside
Australia - the Foreign Investment Fund Rules:

http://www.collettandco.com

Broadly, any investments held outside Australia may (emphasis MAY) be caught by the
FIF rules. These rules require you to treat the increase in value of these overseas
investments within your Australian assessable income, even though you may have not
remitted any of the fund to Australia (and even if you cannot - this is particularly
the case with most pension funds). So you may find yourself paying tax at 48.5% on
the increase in value of investments held outside Australia from one year to the
next, even though you do not have the funds with which to pay the tax bill.

There are exceptions to the FIF rules - such as for holdings that are disposed of
before the end of the income year (30 June), or for certain temporary residents
(not all).

It's quite a big topic, but hopefully the above and the factsheet will give you
some of the background you need. If you have any more queries after that please
contact me.

Best regards.

Alan Collett alan-at-gomatilda.com Managing Director - The Go Matilda Trading Company
Limited W www.gomatilda.com Offices at Enterprise House, Ocean Village, Southampton,
Hampshire, England, SO14
3XB. - T +44 (0)2380 488777, and
4/11 Queens Road, Melbourne, VIC 3004, Australia - T +61 (0)3 8530 7030 "There are no
shortcuts to anywhere worth going"

GTE/boggabri I am an Australian citizen living in the USA. My wife is a US citizen.
We are both retired professionals with a moderate income and wonder what would be our
exposure to Aust'n Income Tax for our investments and retirements in the USA should
we return to Oz and take up permanent residence? I have downloaded the Aust'n Tax
Forms, but am not sure about many of the definitions of income. I have received
conflicting reports from several 'tax specialists' and wonder if anyone could refer
me to a reliable source of 'the good oil'. Thanks Boggy

GTE/boggabri

Thanks Alan.

Checked your website. Looks like a good idea. I shall return to it from time to time.
Thanks also for the links. Boggy