457 tax advice

[Guest Highgirl]

I've been offered a job in Australia under a 457 visa. I'd like to find out some information on taxation, specifically the income tax rates that I will be subject to (am I a non-resident for tax purposes, or does the 457 visa make me subject to tax as a resident for the time that I'm in Australia?)

 

I am looking to relocate to Oz for a couple of years and then return to the UK. Do I need to declare my Oz income to UK tax office and will I be liable for any tax on this on my return?

 

Also, have been reading about the LAFHA. Do I qualify under a 457 visa? I have a home in the UK but am looking to sell prior to relocating. Is this something that I need to agree with my employer prior to signing a contract and how will it work in practice?

 

Apologies for the many questions - it's a big step and I want to make sure that I get it right and don't miss out on any benefits.

 

Many thanks

[Guest Gollywobbler]

Hello Highgirl

 

Welcome to Poms in Oz.

 

For proper advice, your best bet would be to consult Alan Collett. He is a chartered accountant in both jurisdictions as well as being a registered migration agent.

 

Please see the following links:

 

The Tax and Money Forum - Forum Powered by eve community

 

Go Matilda - Your Gateway to Australia - News

 

If you fish through Alan's various articles there is one about the tax treatment of temporary residents.

 

Collett & Co

 

There are factsheets on Alan's Collett & Co website which might be relevant.

 

Australian Taxation Office Homepage

 

I am completely clueless about tax, but I hope the above might be of some help.

 

Best wishes

 

Gill

[up4answers]

Hi there.

 

My fiancee and I are in the same boat. I'm just waiting for a job my contract to come through.

 

I'm getting a 457. Technically i'll be employed by a staff agency who will then contract me out to my employer. My friend already works where I'm going and has done the same for the last 3 years.

 

I spoke to the HR Director at the place I'm going, she has recommended keeping our UK property for a couple of years until we definitely know we're going to stay. She said that if I take out a copy of the letting agreement I'll be able to claim LAFHA.

 

In doing this I'll also be paying less tax as I'll still be British. She reckoned if paying Ozzy tax i'd take home 60kish, but by doing it on a 457 this way I'll take home 75k.

 

Also you'll have to pay Super (super annuation). It's compulsary and set at 9% at the moment by the Government. If you leave after a couple of years you get it back, if you end up staying and getting residency you'll get it as your pension on retirement.

 

Where are you headed? what do you do? We're going to Sydney, I'm an art director, my partner is an account manager.

 

Hope that helps some.