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Leaving Oz and tax returns


jonny

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Not sure if it's the right forum but figure people who have gone back to the UK from staying in Oz will have come across this.

 

I now have PR (hurrah) and, of course, every single detail of everything is now going through my mind.

 

If I return in the UK in the future, will I have to lodge a tax return with the ATO forever until my *gulp* return marked 'final'? Or do you only lodge returns for time you are actually in Australia?

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It may depend if you have any income in Aus after leaving. You do not have to make a return if overseas and only on come is bank interest as they will deduct a withholding tax at source which can be offset against UK taxes. Otherwise if you leave just let them know. You will need to do a return for the last tax year of residence.

 

if you have any income arising in Aus though including rental income you need to do a return. No biggie though we did this for a few years.

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Why? What would be the benefit.

 

Our oz accountant was definitely of the opinion that the tax man in oz made a lot more effort to look at your affairs more closely if they thought that you were leaving for good and you were due a refund/pension entitlements/ or were sorting out final pension payments, so he was certainly of the view not to say you were leaving for good, something about the Oz mindset.

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Actually, it makes sense. Looking up ATO I see the comments that 'Foreign resident for tax purposes' does not have to file a tax return.

 

I guess with all things tax here, I'll have a chat with an accountant.

 

Thanks all!

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Whilst not living in Australia you still have to submit returns for income generated within Australia. For example, rent from property is a common one, but Australian stocks are tax free, go figure? You will be taxed as a non-resident (no tax free threshold) but its not all bad. There is a book called "The Aussie Expat: The Luckiest Person on Earth" which covers everything you needed to know.

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