Blewyn Posted July 29, 2014 Share Posted July 29, 2014 If a secondary 457 holder earns a salary or contract payment for work performed overseas for an overseas employer, is it taxable in Australia ? Quote Link to comment Share on other sites More sharing options...
blossom Posted July 29, 2014 Share Posted July 29, 2014 Not if they are not living in Australia. If they are living in Australia then yes. Quote Link to comment Share on other sites More sharing options...
Blewyn Posted July 29, 2014 Author Share Posted July 29, 2014 What if they're not living in Australia but regularly visiting their spouse, who is living in Australia ? Quote Link to comment Share on other sites More sharing options...
rammygirl Posted July 29, 2014 Share Posted July 29, 2014 All depends on residency for tax purposes. A 475 does not pay tax from overseas income. Tbh I would check with an accountant. It can depend on personal circumstances. If resident in Australia I think they should be paid via anAustralian payroll. U Quote Link to comment Share on other sites More sharing options...
Blewyn Posted July 30, 2014 Author Share Posted July 30, 2014 A 457 holder can leave and re-enter Australia as they please, no ? What if the secondary was working overseas FIFO, and getting paid overseas, no money being paid in Australia ? Quote Link to comment Share on other sites More sharing options...
AJ Posted July 30, 2014 Share Posted July 30, 2014 A 457 holder can leave and re-enter Australia as they please, no ? What if the secondary was working overseas FIFO, and getting paid overseas, no money being paid in Australia ? Even if you are a secondary on the visa you still are resident for tax purposes so I would think you have to pay tax in Australia, what does it matter where you pay tax UK or Australia, you are only going to pay it once, so why try finding ways round the system Quote Link to comment Share on other sites More sharing options...
Blewyn Posted July 30, 2014 Author Share Posted July 30, 2014 Who said anything about being in the UK ? Quote Link to comment Share on other sites More sharing options...
AJ Posted July 30, 2014 Share Posted July 30, 2014 Who said anything about being in the UK ?Sorry, whatever other country you are talking about! Quote Link to comment Share on other sites More sharing options...
Blewyn Posted July 30, 2014 Author Share Posted July 30, 2014 The other country I am thinking of doesn't have income tax.... Quote Link to comment Share on other sites More sharing options...
AJ Posted July 30, 2014 Share Posted July 30, 2014 The other country I am thinking of doesn't have income tax.... So really you are looking to avoid pay tax altogether, so then do you expect to benefit from any services in Australia like Medicare? Quote Link to comment Share on other sites More sharing options...
Blewyn Posted July 30, 2014 Author Share Posted July 30, 2014 Not at all. 457s don't get medicare by default (only if country of origin has a reciprocallity agreement) Quote Link to comment Share on other sites More sharing options...
NicF Posted July 30, 2014 Share Posted July 30, 2014 (edited) Definitely consult a tax accountant. If you have a home outside Australia then you may be able to argue that you are resident in that country even if your OH is resident in Australia. However if your main home is in Australia then you may be on dodgy ground claiming you are not resident for tax purposes. If claim you are not resident but the ATO decides you are you will be liable for the tax not paid and probably a fine as well. ETA - it's just occurred to me that 457 visa holders are not normally taxed on foreign income anyway so you probably would not be subject to tax in Australia on your earnings. However I would still advise taking advice from a tax accountant with knowledge in this area to be on the safe side. Edited July 30, 2014 by NicF Quote Link to comment Share on other sites More sharing options...
Guest hoffer Posted July 30, 2014 Share Posted July 30, 2014 It will need declaring on your tax return as you are both residents from a visa point of view but there are some ways around minimizing the tax liability. Get a decent accountant and let them worry about minimizing it. But with the information you have provided its limiting on what anyone here can really advise. By decent i mean not one of the $200 ones and use one that understands both local and international Quote Link to comment Share on other sites More sharing options...
Blewyn Posted July 30, 2014 Author Share Posted July 30, 2014 Thanks. Just wondered if amyone here haf done it. Quote Link to comment Share on other sites More sharing options...
Alaska Posted July 30, 2014 Share Posted July 30, 2014 We were 457 holders and did not have to declare income earned overseas due to the temporary visa. We had a tax accountant for our first tax return and they confirmed this. Quote Link to comment Share on other sites More sharing options...
NicF Posted July 30, 2014 Share Posted July 30, 2014 Thanks. Just wondered if amyone here haf done it. I don't think you have posted enough information for anyone to be really sure if their circumstances are exactly the same as yours. Quote Link to comment Share on other sites More sharing options...
Blewyn Posted July 30, 2014 Author Share Posted July 30, 2014 Hey Alaska was this income earned from work, or asset ownership ? Quote Link to comment Share on other sites More sharing options...
Notts Posted July 31, 2014 Share Posted July 31, 2014 There is a distinction between tax residency and temporary/permanent residency for immigration purposes. Holders of temporary visas may be tax resident in Australia - see https://www.ato.gov.au/Individuals/Income-and-deductions/How-much-income-tax-you-pay/Are-you-an-Australian-resident-for-tax-purposes-/ for an introduction to tax residency - but most are covered by an exemption from the requirement to pay tax on foreign income - https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Foreign-income-of-Australian-residents/Foreign-income-exemption-for-temporary-residents---introduction/. (For example people in a relationship with an Australian citizen or PR do not benefit from this exemption as they are defined as residents under the Social Security Act 1991). Quote Link to comment Share on other sites More sharing options...
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