Australian tax

This topic has 6 replies, 5 voices, and was last updated 16 years, 4 months ago by schilln.

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September 18, 2006 at 9:44 am #156

Gina McLauchlan
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This is one carried over from the old forum

Hi was wondering if anybody could tell me what the rules are in Australia for remaining tax free. Thought that as long as you were out for more than 2 months then you were not liable. And… does anybody know the story with non US nationals working in the states, what do you need and are there any agencies there.

Cheers for any replies

P.S. Anybody out there looking for clankies, have approx 6 yrs exp

September 18, 2006 at 9:45 am #7897

Gina McLauchlan
Participant

This is one carried over from the old forum

It is actually 91 days (3 months).

If you are working on a time on/time off contract, and you return to the same place offshore after your time off, the recreation time is counted towards your 91 days i.e the 91 day clock does not start again.

Here is the official ATO ruling:

” Subsection 23AG(1) of the ITAA 1936 provides that where a resident taxpayer is engaged in foreign service for a continuous period of not less than 91 days, any foreign earnings derived will be exempt from tax in Australia. ‘Foreign service’ includes service in a foreign country in the capacity as an employee and ‘foreign earnings’ include income consisting of salary and wages (subsection 23AG(7) of the ITAA 1936). ”

Finally, Australia is the worst tax counrty in the world!

Cheers,

kangaroo

October 22, 2006 at 5:18 pm #7898

crusty
Participant

would also add kangaroo that you have to be within the countries maritime borders, how would they know if you werent
and the country has to have a working tax system, be careful in west africa
you have to be able to show that the work is continuous, ie, for the same employer on the same installation, etc
they’re trying to make it harder so dont do some research now and expect the rules to be the same in 18 months when your sitting in front of the accountant, stay up to date so you know when to lie

July 11, 2007 at 1:43 am #7899

Scott Beveridge
Participant

Hi all,

Didn’t the Oz tax laws change in either March or April this year? The one I’m concerned with is the law dealing with foreign nationals working in Oz and ARE NOT holding a residents permit nor living there. Any of you guys living down under heard anything about this???

July 11, 2007 at 5:54 am #7900

back6
Participant

Scotbeve
good luck in making any sense of this . Here is a link to the oz tax website
Cheers
http://www.ato.gov.au/individuals/content.asp?doc=/content/29462.htm&pc=001/002/012/015/007&mnu=1026&mfp=001/002&st=&cy=1

July 11, 2007 at 6:08 am #7901

Scott Beveridge
Participant

Thanks back 6,

Looks like I’ve opened myself a can of worms!! You saw just the tip of the iceberg…. Govt. speak IS ludicrous!

July 2, 2008 at 2:31 am #7902

schilln
Participant

A fair majority of australians overseas workers fall into the category of the 91 day rule, but it is such a grey area indeed. ive heard different interpretations from different people and even from different accountants. but as far as i can tell you need to do 91 days of foreign service, most importantly to be exempt from tax, you also have to have paid tax in the country that you earnt it….. but unfortunatley most foreign companies only pay there employees a gross wage with no tax certifcates provided
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