Tax question - overseas income as a permanent resident living and working outside Australia

[Aussie Hopeful]

Hi,

 

I wondered if anyone can help me with a tax question.....

 

We previously spent 2 years in Oz as permanent residents before returning to the UK in 2014. We loved and worked there for 15 months before returning to Oz this January. I started working in April and have just completed my Aussie tax return with H&R Block (probably my first issue!).

 

Anyway, as I had only worked 3 months this financial year, I had overpaid on my tax and should have been due 4/5k return from my Australian income. When I went for my tax return they said I needed to declare my overseas income even though I wasn't residing in Australia at the time. Even though I had paid UK tax on my UK income, once it was taken into account, it came out that I owed approx $400 in tax.

 

Im absolutely baffled how I can go from being owed $4k to oweing money despite already paying UK tax on my earnings. I'm not convinced they have calculated it correctly.

 

Should my UK income be taken into account even if I was not living in Australia at the time? I can understand if I was living in Australia and earning money overseas but I was out of the country for 15 months.

 

Is is there anyone that can shed some light on this. Any advice would be much appreciated as I feel like I've been slightly shafted!!

[NicF]

You should declare any overseas income for the period you were resident in Australia. You should also ensure your tax return reflects the fact that you left three months in to the tax year and you are not claiming you are resident for the full year. You will also need to declare any Australian income earned once you left Australia (eg bank interest).

[Aussie Hopeful]

Thanks for the response.

Are you then suggesting that any UK earnings (July 15 - Jan 16) do not need to be declared on

the basis that I was living in the UK?

I returned to Oz on 12 Jan 16

[Alan Collett]

This is likely to be a question of your tax residency status in Australia for the 2015/16 tax year.

 

I recommend that you are comfortable with the advice you are receiving in this regard, and have the position explained to you so you understand the tax return you are being asked to approve.

 

Best regards.