Do I need to lodge a tax return?

[unzippy]

Hello.
I'm just running though the online questions at https://www.ato.gov.au/Calculators-and-tools/Do-I-need-to-lodge-a-tax-return/

It's asking me about my "world wide income" while I was living outside Aus.  What should I be saying and how is this any business of the Aus taxman?

 

Ta.

[Marisawright]

If you earned that money while you were an Australian resident, it is their business.  It's the way tax works - you are taxed on ALL your income, wherever it comes from, by your country of residence.

So for instance, if you live in Australia but still have some investments in the UK, or you're renting out your old home there, you have to declare that on your Australian tax return.  

However, any income you received before you became an Australian resident is none of their business and you don't need to declare it.

 

[unzippy]

Thanks for that

However on another page it states:

"Your worldwide income is your Australian repayment income and your non-resident foreign sourced income. Your non-resident foreign sourced income is any income you earned from sources outside of Australia while you were a non-resident."

Which I took to mean my wages (income) earned in the UK (outside of Aus) while I was a UK resident (non Aus resident)

[Marisawright]

Aha I just looked into it, and the penny's dropped.

What they're trying to do is ensure that you paid tax properly across the full tax year, because all the countries have reciprocal agreements with each other.  So yes, you do have to provide details of your income while you were living in the UK.  Here's the explanation of how to do it:

 https://www.ato.gov.au/misc/downloads/pdf/qc51759.pdf

If it's all too hard, just go to somewhere like H&R Block and get them to fill it in.  Their fee is tax-deductible as an expense in next year's tax return so it's not that expensive.

[unzippy]

Thanks for the PDF.
Given that the PDF starts with:

Quote

myTax 2017 Non-resident foreign income
Part and full year non-residents for Australian taxation purposes are required to report their worldwide income if they had a Higher Education Loan Program (HELP) or Trade Support Loan (TSL) liability on 1 June 2017.

Does that mean I'm excluded as I didn't/don't have either loan mentioned?

 

Ta.

Edited July 6, 2018 by unzippy

[Marisawright]

4 hours ago, unzippy said:

Thanks for the PDF.
Given that the PDF starts with:

Does that mean I'm excluded as I didn't/don't have either loan mentioned

Very good question.  I read that bit and thought, does that mean they're the ONLY people who have to report this or not?  Maybe someone else has some idea - otherwise, I'd be heading off to the tax agent

[Parley]

Did you have a lot trouble reading letters and filling in forms in the UK too unzippy ?

[unzippy]

Nope, why?

[Alan Collett]

On 05/07/2018 at 17:45, Marisawright said:

Aha I just looked into it, and the penny's dropped.

What they're trying to do is ensure that you paid tax properly across the full tax year, because all the countries have reciprocal agreements with each other.  So yes, you do have to provide details of your income while you were living in the UK.  Here's the explanation of how to do it:

 https://www.ato.gov.au/misc/downloads/pdf/qc51759.pdf

If it's all too hard, just go to somewhere like H&R Block and get them to fill it in.  Their fee is tax-deductible as an expense in next year's tax return so it's not that expensive.

I have encountered many who went to a tax agent who was not across the nuances of newly arrived residents to Australia and the consequences of visa type.

By all means go to a cheapie High Street tax agent after a year or two of living in Australia.

Until then the prudent approach is to use a tax agent who is competent in the area of new arrivals to Australia.

Best regards.

[unzippy]

Is there "trust a trader" type review site from where to chooses one?

[unzippy]

Are you any good? Is there any recomendations?

[Marisawright]

1 hour ago, unzippy said:

Are you any good? Is there any recomendations?

Considering how helpful and knowledgeable Alan is, I'd say he's a pretty good choice.  

I'm sure Alan would disagree with me, but if you're an average person, who just earned  a salary in the UK and you're just earning a salary in Australia, you'd be fine with H&R Block. Where you absolutely must have an accountant like Alan is if you've got investments in the UK or you're renting out your property there, it gets complicated.