When does Australian income tax kick in?

[Fisher1]

Hi all

 

I'm wondering about Australian income tax. Obviously, if we live in Australia we are liable to Australian income tax, but I recently read a post about capital gains tax, which seemed to suggest that capital gains tax would be payable to Aus. once the permenant residence visa has been granted.

 

If we were granted a PR visa (parents visa so five years from date of issue to make the permenant move over) I'm assuming that we would not become liable to any form of Australian tax before we made the move. It seems obvious but can anyone confirm my assumption? We dont want any nasty surprises:smile:

 

Thanks in advance

[NickyNook]

In your case you become liable for Australian tax when you become a tax resident. i.e. When you move here.

[Ken]

If we were granted a PR visa (parents visa so five years from date of issue to make the permenant move over) I'm assuming that we would not become liable to any form of Australian tax before we made the move. It seems obvious but can anyone confirm my assumption? We dont want any nasty surprises:smile:

 

Thanks in advance

 

If you have any Australian income before you move (e.g. interest on an Australian bank account - I think you may need a certain amount deposited in Australia to get a parent visa but I may be wrong) then you'll be subject to 10% withholding tax on that - but that applies whether or not you have PR. While you're still in the UK you'll be subject to UK tax on that interest and you can use the withholding tax to offset your UK tax bill.

[Fisher1]

Thanks. Thought that was the case but once you start to doubt ....