UK and Australian tax years

[Andy Sephton]

Hi,

 

I have recently become an Australian permanent resident, meaning I now have to declare my UK income here.

 

My question fro this forum is does anyone know if I have to declare my UK income for the last UK financial year (April 2013-March 2014) or for the dates of the Australian financial year (July 2013 - June 2014).

 

Just a bit confused as I have only paid tax on my UK income up to April 2014 so not sure how to report my income and how much tax I have paid on it in the UK from the period from April to June this year.

 

Hope that makes some kind of sense and that someone can help me.

 

Thanks.

[Pumpkin]

Personally, I just aligned them.

[Notts]

You have to use the Aus tax year for all entries in your Aus tax return.

[JoannaAch]

I also arrived mid-tax year and have just done my tax return. Don't you only declare the income that you earned while being a tax resident in Australia? I have done my taxes through a tax agent and he didn't ask me for any income from outside Australia (and from before we moved here)?

[Notts]

I also arrived mid-tax year and have just done my tax return. Don't you only declare the income that you earned while being a tax resident in Australia? I have done my taxes through a tax agent and he didn't ask me for any income from outside Australia (and from before we moved here)?

 

Correct. Overseas income whilst a tax resident of Australia is assessable in Australia (unless you are on some temporary visas), but not income earned before then.

[poolprouk]

Correct. Overseas income whilst a tax resident of Australia is assessable in Australia (unless you are on some temporary visas), but not income earned before then.

 

Does this apply when your recieve a final payment from your UK employer after the date when you landed in Australia?

 

e.g. Finished up with employer on 8 april. arrived Australia April 30. Final salary payment from uk employer 10th may?

[JoannaAch]

Does this apply when your recieve a final payment from your UK employer after the date when you landed in Australia?

 

e.g. Finished up with employer on 8 april. arrived Australia April 30. Final salary payment from uk employer 10th may?

 

I would say it applies, as the UK income was still earned before you arrived in Australia (even though it was transferred to your account later). After we arrived in Aus, we were still getting some payments from previous (German) employers, but as it was for a month before we came, I didn't mention it in my tax return.

[Notts]

The general rule for employment income is that it is assessable when received, regardless of when it was earned. For example, bonuses paid in August 2014 in respect if the year to 30 June 2014 are taxable in the year to 30 June 2015. This would suggest that any payment received once you are tax resident in Australia should be included in your return.

 

What visa are you on? Most temporary visa holders are exempt from paying tax on overseas income.

[JoannaAch]

The salaries we received went to the German bank account (not that we even used that money - went straight to pay back the credit card:/) and anyway it's to late - I already received my tax return. It's weird though that the tax agent didn't even ask for income from overseas... I had all the documents with me but he was not interested.

Edited July 22, 2014 by JoannaAch