emj1986 Posted January 1, 2014 Share Posted January 1, 2014 Hi, I recently accepted a job in Australia. All Visas have gone through and we are preparing to move out in the next few months. As part of my contract they gave me a $10k signing bonus as we are not shipping any of our personal items. If I get this $10,000 transferred to my account is it TAX FREE if we say its for relocation or will I be Liable to pay TAX. Any documentation would be extremely helpful I tried to search for it but couldn't find the answer I was looking for. I think it comes under fringe benefits. Thanks for any help and advice it is very much appreciated. EMJ Link to comment Share on other sites More sharing options...
wrussell Posted January 1, 2014 Share Posted January 1, 2014 Hi, I recently accepted a job in Australia. All Visas have gone through and we are preparing to move out in the next few months. As part of my contract they gave me a $10k signing bonus as we are not shipping any of our personal items. If I get this $10,000 transferred to my account is it TAX FREE if we say its for relocation or will I be Liable to pay TAX. Any documentation would be extremely helpful I tried to search for it but couldn't find the answer I was looking for. I think it comes under fringe benefits. Thanks for any help and advice it is very much appreciated. EMJ You might want to check with an accountant (or the ATO website) about where the liability for FBT resides. Link to comment Share on other sites More sharing options...
Peach Posted January 1, 2014 Share Posted January 1, 2014 Signing bonuses are generally paid to you via payroll and treated as part of your normal income. In the month you receive it you will most likely get stung for a heap of tax, which you can get most back after you have done your tax return after July. Being paid cash isn't a fringe benefit. Link to comment Share on other sites More sharing options...
Alan Collett Posted January 1, 2014 Share Posted January 1, 2014 Probably better for the employer to pay for your flights and for the cost of this to be deducted from the $10k. I'd be trying to bundle up relocation costs in this allowance - likely to be a more tax effective salary packaging outcome. In case of need: http://www.gmtax.com.au Best regards. Link to comment Share on other sites More sharing options...
emj1986 Posted January 1, 2014 Author Share Posted January 1, 2014 Thanks Peach thought this was the case even though I was hoping for a different answer thanks again Link to comment Share on other sites More sharing options...
emj1986 Posted January 1, 2014 Author Share Posted January 1, 2014 Thanks Alan flights are due to come out of this I was hoping to get the remaining money into my account for furniture etc but may have to rethink if it's taxed thanks Link to comment Share on other sites More sharing options...
rammygirl Posted January 3, 2014 Share Posted January 3, 2014 Could it pay for furnished accommodation for a few weeks until you get settled and give you time to look for more permanent accommodation ? That would add up to a fair bit. Link to comment Share on other sites More sharing options...
Alan Collett Posted January 4, 2014 Share Posted January 4, 2014 Could it pay for furnished accommodation for a few weeks until you get settled and give you time to look for more permanent accommodation ? That would add up to a fair bit. I fear this is likely to no longer be FBT effective following the abolition of the Living Away From Home Allowance for the majority of 457 visaholders. Best regards. Link to comment Share on other sites More sharing options...
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