Les Avalook

Hugh


What is the effect of being a non-resident?
Non-residents pay tax differently from residents. As a non-resident you will:

pay tax on all salary and wage income earned in Australia. The non-resident tax rates are different from resident tax rates. See Individual income tax rates for details of non-resident tax rates

have 10% of any interest earned from your Australian bank accounts withheld for tax. This interest is not included as assessable income. You need to advise the Australian financial institution of your overseas address so that this tax can be withheld otherwise tax will be withheld at the higher rate of 46.5%

This may cover it.


Happy to be told I have the wrong end of the stick.

Alan Collett

Yep, that's about right Les.

Note also that Aus source interest income is properly taxable in the UK as well if you are resident and domiciled in the UK, with the 10% tax withheld in Australia capable of being claimed to reduce the net liability payable to HM Revenue.

Best regards.

hwilson

Thanks Les,
I'll go in to a branch when I am over on holiday next week to sort it out. The savings on tax on interest should make a small contribution to help offset the spiralling exchange rate.
Hugh

Alan Collett

Hugh,

If you are still living in the UK the bank in Australia is correctly withholding 10% tax from the interest.

Best regards.

hwilson

Thanks Alan,
I'll use this information next week in Sydney. They are currently with holding more than 40%.
Hugh

Chris-Rob-PTK

May we wish each and everyone of you a Merry Christmas and Happy New Year ....to those of us hoping 2010 is our year ,may it go smoothly and to those with longer to wait ,hang on in there ...
Best Wishes
from
Chris & Rob

Les Avalook

Hugh, Our son in his first year in Oz had his interest withheld at 46.5% even though he had become resident, it must be their default setting.

He did get the correct interest paid later.

As UK residents if we open an account in Oz we should be paying 10% tax in Oz and 10% tax in the UK on any interest, so the only gain would come from better interest rates in Oz or if you believe exchange rates have futher to fall.

Regards
Les

gotnoidea

Probably not too many people applying for visas in mainland Europe, but I'll continue my story for posterity....

So mum tried to fax the fax payment to Berlin and failed to do so. We're not quite sure why, I'll put it down to a busy line rather than not actually being able to use the fax machine. Soon after that Mum got a phone call from the woman at the Paris embassy to apologise for messing up the process saying she could have accepted the bank cheque we'd had drawn up. Bit late by then as it had already been presented back to the bank for reversal.

So we ended up scanning the papers and faxing it from my work - middle of the night in Germany, worked first time! Then later that evening i got an email from the head of immigration in Germany. I'd actually posted some constructive feedback on the DIAC website about a week previously, advising that they update their website if they can't accept those payment methods. The crux of the letter was firstly an apology, saying they don't do this thing too often so it threw them a bit (fair enough, not like I hadn't been reading this forum!!). He then got the woman in Paris to call Mum; had scanned the payment receipt and personally sent it to our CO; asked that he be copied when the visa is granted and that he'll get our lady in Paris to call Mum again when it has been issued so she can come in and get it evidenced. Well knock me down with a feather!! - not what I was expecting at all. Not that I have ever had any 'bad' experiences from the people at immigration (infact when Mum last left Sydney, she got stopped by an officer and simply asked her to confirm that she had applied for this visa, then he wished her a pleasant journey and looked forward to seeing her return!)

Anyway, I replied to our friend in Germany to thank him for his efforts and asked if he could get a visa grant for Christmas!! ha ha - you got to ask, right?! Anyway, the hard part is all done now. We're not expecting too many miracles during the next week or so. Lets hope to see a grant over the next ten days and a happy mum and granny for January.

Rich

Alan Collett

I would hazard a guess this is because they have an Australian address on file for you, and no Australian Tax File Number. Or the bank has made a mistake.

Solution (assuming the first sentence applies): provide a postal address in the UK.

Best regards.

Les Avalook

This is what happened to our son, the bank had lost his Australian Tax File Number (or not linked it to his account) and so taxed at 46.5%.

Either way you do get the extra tax back once they have the correct information.

Les

sirmatt101

Wouldn't it be an ideal world if they were all like that and took just that little bit extra interest in you as a "paying customer"

Hope all goes well with the grant.

Cheers

Matt

sandch

Yes, very encouraging after recent experiences - restores one's faith somewhat.

sirmatt101

Due For Imminent Release!!
It has been 19 Months in Production
It has cost Thousands of Pounds to Produce
It has provided Employment for Thousands of Australians
It has only a Cast of 3 (us 2 & the CO)
And it is released on Circuit tomorrow 22nd December 2009!!

Yes, you've guessed it, "AVAVISA" The latest production from the team that also produced "Matt Down Under" earlier in the year!

Ok, I am just a little excited that I have received an email from our CO to say he is doing our grant letter either later tonight, or first thing tomorrow Oz time. It is in response to my email, asking if "The Pony Express Mail" had arrived yet.
I will not celebrate just yet, not until I have printed out that letter and locked it in the safe!

Cheers

Matt

hwilson

I don't believe it! Are you sure you didn't dream it? Make sure the safe is fireproof, and bolted to the floor.
Fantastic news. Congratulations!
Hugh

rosalinka

Dare i say congratulations
Locked in a safe? it should be on you tube
best of luck matt. And a very merry christmas to all