Probably silly question about tax

[LittleMissWildChild]

Hi everyone,

 

This has probably been asked a dozen times, but I think I must be blind, as I haven't managed to weed out the answer.

 

Hubby is in Oz on a 309 (so, provisional) visa. He has a mortgage on a flat in the UK, and he rents it out. He has signed up to the non-residential landlord scheme. Hubby seems to think that as the money he earns from his flat is staying in the UK, as he is using it to pay off his mortgage, and therefore not coming into Oz at all, he won't need to declare it on his Oz tax return, and instead will do a UK tax return for the flat each year (and get a tax free threshold there too).

 

I think that he will have to declare any income he earns from his flat from when he arrived in Oz on his tax return (with the amount he earned prior to his arrival in Oz/when he was resident in the UK being declared on his UK tax return). Furthermore if he wants to be a resident in Australia for tax purposes, and take advantage of the tax free threshold, he will have to declare any income he makes from his flat from the date we arrived onwards forevermore (unless we move from Oz/stop renting it out) and pay tax on it in Australia, not the UK. The only bit I am unsure about is he is on a 309 visa, which technically means he is on a temporary visa for now.

 

Who is correct? Or are we both wrong? I think we're both probably being a bit thick

[Rupert]

You are more or less on the right track, he definitely is not. Only *certain* temporary visa holders do not have to declare the overseas income in Australia and the partner visa is not one of them with this concession.

 

The income from the UK property should be declared on both UK and Australian tax returns, it is irrelevant what he choses to do with the income, the UK HMRC gets first bite of the cherry and any tax that is paid there would be included as a tax credit on the Australian return.