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Confused by my tax situation.

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Hi all,

Please bear with me.... the current situation....

  • British on 457 sponsorship visa
  • Been in Australia 18 months
  • Paid 120k year salary which I have paid tax and super on.
  • I have a ABN/LTD Australian company with about 1m$ in the bank. I have taken $0 income from the company and paid all tax required.

Due to recent changes in the visa sponsorship, I, unfortunately, will need to return to the UK.

I understand I can claim back my super / tax which is great.

However, I am not sure on my situation of the $1m I have taken no income from. What happens if I was to transfer the whole amount to the UK? I need to close down my Australian company too.

Any thoughts or advice?




Edited by confusedbytax

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You need to speak to a professional accountant/ tax advisor that understands both UK and Aus tax.  Alan Collett who posts on here may be able to help google GM tax.  

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So many wineries ......so little time :yes:

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Ok you need to separate the personal and the company stuff.  There will be a link depending on how the company stuff get's treated.  Given the amount involved in the company, it is worth getting professional advice.  Also super is a separate issue.

So was the $120k paid to your company or to you personally as a an employee?

You can only claim back overpaid tax.  If it is the later, your employer would have deducted tax at source.  You will receive a Group Cert at the end of the year (30June), probably in July sometime.  You will complete a tax return with all your income and deductions for TY17 and you may receive a refund you may owe them money or it may be square.  You have until 31/10 to do this.

Super - as a temporary resident leaving permanently you can claim back your super.  They do deduct tax from it though and I believe that this is due to go up significantly from 1 July (you can google the rates but from something like 35% to a punative 65%).  Depending on the amount it may be worth leaving this in Australia to accumulate over the years rather than forking a majority over to Mr Turnbull.  Given the changes are imminent on this, youmay want to get a move on)

The company is more complex and I believe worthy of professional advice.  You could pay yourself a dividend (or a couple over different tax years - this will impact your personal tax return) or you could do a return of capital.  $1m is a lot of money, worth spending a few hundred or $k with a tax specialist to work out the best way to distribute the equity in the company. 

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Worth getting advice sooner rather than later as you may want to take some actions prior to 30/06 to minimise tax 

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Yes, strategic planning is required here.

Please feel able to contact me via the GM Tax website, or send a PM/email to me (click on my name to the left of this post).

Best regards.

  • Like 2

Managing Director, Go Matilda Visas - www.gomatilda.com

Registered Migration Agent Number 0102534; Registered Tax Agent (Australia)

Chartered Accountant (UK, and Australia)

T - 023 81 66 11 55 (UK) or 03 9935 2929 (Australia)

E - alan.collett@gomatilda.com and acollett@bdhtax.com

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