Hello, i am a permanent resident that has moved to australia in april. I have settled down and now I start my first day of work on monday. I used to let my property in the uk a few years ago but moved into it in 2015 before moving over here.
I thought i will keep it and rent it out still whilst i live here, incase i ever decide to go back to the uk. I naively thought it would be the same as it was back when i rented it last time, i just declare tax under a personal assessment and pay the tax in the uk. As i do not earn any other uk income now i thought that my personal allowance will clear my income so i will not pay tax on it. However when filling out forms for the agent, it asks for my over seas tax info etc. I googled it and now i've fallen down a rabbit hole full of loads of different advise and scenarios etc. I am basically looking for some advise on what is likely to be the case for my situation.
My basic wage for my australian job that i start monday, will be $67,184. However i will be required to do lots of overtime and i am pretty sure after roughly working it out i may end up with about $83000 a year.
My property in the uk should fetch £750 (A$1351 under current conversion rate) a month. I will be paying 10% plus vat to the agent per month, so £90 (A$162). Every year i will be paying £100 (A$180) to renew tenancy and £50 (A$90) for tenancy deposit scheme. My mortgage cost is £328 (A$590) a month but that is on a repayment. The interest is roughly £173 (A$311) a month.
So to summarise:
Australian job Earnings : $83000
Yearly rental without any deductions: $16214
Agent fees per year: $1944
Interest on mortgage per year: $3732
Other fees for tenancy per year: $270
What is my likely tax bill going to be for the rental income?
Can i deduct interest, agent fees etc to lower my tax bill? If not, it appears most my profits may go to tax and make it not even worth renting out so may have to look to sell it.