Income Tax for non residents

I retired in January this year at age 61 after receiving a redundancy package. As of January I ceased receiving any taxable income with the exception of a small amount of bank interest  I have opened a pension account (income stream), which is my only source of income and not taxable whether I am a resident or not.

If I apply for residency in Germany during the same financial year that I was still receiving a salary in Australia will I be taxed on that salary at non resident rates i.e retrospectively? Or am I only taxed on any Australian income I receive whilst a non resident?

5 comments

 

 

 

U will be taxed at resident's rates

you nominate on your tax return for that year the date you ceased to become resident for tax purposes in Oz

All taxable income derived in Oz post that date will be at 30%

TO maximise your tax rebate, leave after 30 June

Thanks Raphael,

As I have not earned any income since retiring in January I should be fine to leave before 30 June.

 

 

 

No - meant to say tax refund

Eg if your annual income up to Jan was 50,000 - leaving in June will drop your marginal tax down as the income is deemed to have been earned over 12 months, not 7 giving you refund of approx $600

 

do the math and work out how much extra refund you will get

Yes that is correct but as I will be leaving end of May I think it will make a minimal difference. Do you know if non residency starts when you leave Australia or when your residency is accepted by the other country e.g Germany as I will still have to apply for this when I get there and it could be 6 weeks before it is issued.

 

makes no difference in your case as youre not earning anything here or in Germany

if you were, then there are some complex rules such as

 

do you maintain a permanent home in Oz

are your wife and dependents here 

etc etc

 

not as straightforwward as the day you leave or the day you are granted residency in germany

ATO will want to tax your worlwide income any way they can

Much better in UK they do not tax you on foreign income ,

Fruendlich - it will be the date you leave Oz unless you are caught by the ATO residnecy test designed to tax your worldwide income

 

Yes Brocky if only Oz was the same - id leave my investments in tax free Jersey and draw down on it back in Oz

Easier to be a foreign resident in London with dual passport .

Plus invest in US no capital gains on foreigners and repat to London as a foreigner . Yet come and go with UK passport . 

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