sambo76

Hi there

I am hopefully going to Australia on a 2 year student visa and my workplace in the UK has offered to keep me on so I can work remotely whilst in Australia. My question is would I keep paying tax to the UK government as usual as it is a UK company or would my company pay my share of tax to the Australian government? Any help on this would be really appreciated. Also as a sudent I am only allowed to work 20 hours a week if I get a job in Australia, would these restrictions be the same even though I am technically still working in the UK?

Many thanks

Esther

Tony

sambo76 wrote:

    > Hi there
    >
    > I am hopefully going to Australia on a 2 year student visa and my
    > workplace in the UK has offered to keep me on so I can work remotely
    > whilst in Australia. My question is would I keep paying tax to the UK
    > government as usual as it is a UK company or would my company pay my
    > share of tax to the Australian government? Any help on this would be
    > really appreciated. Also as a sudent I am only allowed to work 20 hours
    > a week if I get a job in Australia, would these restrictions be the same
    > even though I am technically still working in the UK?
    >
    > Many thanks
    >
    > Esther
    >
    >
    > Many thanks
    >
    > Esther
    >
Hi Esther
Australia has a double tax agreement with the UK. Therefore if you pay
tax in one country you don't pay in the other.

Your second question is more difficult. Work is defined at "an activity
which would normally attract renumeration". If you do any such activity
in Australia, the time spent doing that activity counts toward your 20
hours.

So the answer is yes, even if you are "technically" working in the UK,
it still counts. Enforcement is a different issue of course. How will
the dept know how much your working for the UK company?

tony

www.mygreatconsultants.com.au

George Lombard

Hi Esther,

Tony's right that as a student visa holder you'd be limited to 20 hours a week in all your employment, whether remote or not, while your course is in session. Your taxation situation is more complex. As you'd be here for relatively lengthy periods, you'd be an Australian resident for tax purposes, but as a temporary resident some or all of your offshore income may be free of tax here, irrespective of whether it's taxed at source. Would it be offshore income though if you're working here? I'm sure Alan Collett will be answering you shortly. I can certainly give you the name of a tax advisor if necessary.

Cheers,

George Lombard

Alan Collett

Hello Esther.

In broad terms Australian tax law says that Australia can tax employment income that is carried on in Australia, so if you are going to be paid a salary I think your employer is probably looking at setting up a Pay As You Go arrangement with the Australian Taxation Office, with all of the compliance obligations that go with it (including the payment of superannuation contributions).

Alternatively, you may be best advised to set yourself up as a consultant rendering invoices to your overseas client ...

As to whether you can work for more than 20 hours a week "because you are technically still working in the UK", I would say that actually you are working in Australia because that is where you will be physically present => you must adhere to your visas conditions and limit yourself to 20 hours a week.

Feel able to contact me directly if you want some further advice.

Best regards.

sambo76

Hi Alan

Thanks for getting back to me. I am trying to sort out the tax issue for my company as it is only a small company and if it's too much trouble they may change their mind!

I was hoping really that they could pay me as usual i.e being taxed in the UK and if the Australian government require any additional tax I could pay them direct. Do you think this could be an option or will it have to be be my company paying direct to the Australian Government. i ahve checked with Australia house and they confirm I can't work more than 20 hours, which is fine, if I am a student I probably won't have the time anyway.
Many thanks for all your help

Esther

sambo76

HI George

Yes if you could give me the name of a tax advisor that would be great.

Many thanks again

Esther

Dick Adams

    > As to whether you can work for more than 20 hours a week "because you
    > are technically still working in the UK", I would say that actually you
    > are working in Australia because that is where you will be physically
    > present => you must adhere to your visas conditions and limit yourself
    > to 20 hours a week.

Believe it or not the Australian Tax people are very fair on
interpreting the taxation of off-shore income. The major
issues are is whether or not your intention upon arrival is
to be resident in Australia for an extended period of time.

In this case the OP intends to be resident for two years.
He is, therefore, subject to Australian taxation even if he
changes his mind and departs after one semester.

Dick
--
Moderator: misc.taxes.moderated

Alan Collett

Thanks Esther.

If I may I will send details of a tax person here in Australia to you by email as well.

Best regards.

sambo76

Hi Alan

Yes that would be a great help

Many thanks again

Esther