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New Tax Laws for Australians

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KennyF

A note on the "money stays in Australia" thing.

In previous topics about pension portability, someone pointed out that there was 3 times more overseas pensions coming into Oz as there is going out?

 

KonC

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SomeRandomGuy

 

 

In previous topics about pension portability, someone pointed out that there was 3 times more overseas pensions coming into Oz as there is going out?

 

yep but good luck pointing this out to people back home or the polly's.

 

This crap all started when today tonight of a current affair one of them two did a story about two guys living on the pension in greece and were seemingly living the high life.... people got so pissed off.

 

Mind you I wonder if they were in the same position as these two people on the show would they have done anything different?

I do get annoyed how people can not think of other peoples situations and only think of how their is..... part of the fun of being human i guess

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mikewright

There seems to be two different residency tests here, one for people coming into Australia to live, the other for Australians leaving Australia to live abroad.

 

The link to the ATO tool applicable to Australians leaving Australia to live abroad is http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=residency_leaving.XR4

 

Changing residency can have unintended concequences.  Just one example, for an Australian it can result in a "deemed" disposal of a person's assets, triggering a large capital gains tax assessment. Personally, as the whole area of domicile/residency is so complex, I'd be getting professional advice sooner rather than later if I thought it could affect me.

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Forex

There seems to be two different residency tests here, one for people coming into Australia to live, the other for Australians leaving Australia to live abroad.

 

The link to the ATO tool applicable to Australians leaving Australia to live abroad is http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=residency_leaving.XR4

 

Changing residency can have unintended concequences.  Just one example, for an Australian it can result in a "deemed" disposal of a person's assets, triggering a large capital gains tax assessment. Personally, as the whole area of domicile/residency is so complex, I'd be getting professional advice sooner rather than later if I thought it could affect me.

Good pick up Mike there are two residency tests.  I thought one supersede the other and the one you linked is the one I thought had been scrapped by the one for coming to Oz. The ATO website is very ambiguous though as it doesn't really distinguish between the two.

 

That's a huge relief for me as I thought I was certain to be taxed as a Foreign Resident.  But as you say, getting professional advice is the way to go.

 

Thanks

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Contango

The way i understand it, if you want to 100% keep your tax residency status then you need to spend 6 months and 1 day (183/4) days per year in Australia...everything other than that is iffy.

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ozboy

SIMPLE....get your OZ tax agent to send you a Residence Tax Ruling......fill it in and if they deny you then that is your status....don't expect answers from people on a forum....do it your s elf cos all our situations are different.....

 

BTW we r returning to OZ eve n though ive 8 yrs before I need to draw a OAP.....but ive got my wife permanent residency in a country that for this period in time offers some security whether I live or die...

Those who have basic funds to support living in their ideal away from it all are just kidding themseves ...long may this dream last under these circumstances....

 

 

Its JUST GONNA GET HARDER n HARDER but dream on...LOL

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Hy H

Its JUST GONNA GET HARDER n HARDER but dream on...LOL

 

 

Just picked this one up from Courier Mail

 

Pensioner households are spending more than half their income on essentials, the report shows.Source: News Limited

SHOCKING power and insurance bills are leaving baby boomers too broke to pay for doctors' visits, new clothes or eating out, research reveals.

The National Seniors analysis of price rises and spending patterns for the over-50s shows a generation on the breadline - with 250,000 over-50s households unable to pay their bills on time.

Most of their money is spent on essentials - such as power, water, insurance and medical services, which have all surged three to six times faster than inflation over the past five years.

Pharmaceutical and health insurance price rises are hitting the over-75s hardest, the analysis of data from the Federal Government's Household, Income and Labour Dynamics survey shows.

Spending on medical costs for old-age pensioners jumped 69 per cent, from $966 in 2006 to $1630 in 2011.

The over-75s spent 62 per cent more on health insurance and 58 per cent more on power, water and phone bills.

Pensioner households are spending more than half their income on essentials such as groceries and heating the house, the report shows.

And 500,000 of the poorest pensioner households spend 80 per cent of their income on essentials.

For these Australians, "if their rent increases the only possible options may be eating less or heating less,'' the report warns.

"The global financial crisis and low interest rates have reduced the income of self-funded households that rely on investments to fund their retirement,'' it says.

One in seven of the poorest households went "cold turkey'' on cigarettes and alcohol between 2006 and 2011, to save money.

"Large proportions of pensioner households also reduced their spending on petrol, clothing and footwear, medical and car maintenance by more than one-quarter in real terms,'' the report says.

"Some senior households reduced their spending on medical services to zero.''

Baby boomers hitting retirement age have swollen the number of households reliant on the aged pension by 55,000 or 6.5 per cent between 2006 and 2011.

National Seniors chief executive Michael O'Neill said the cash crunch would worsen as more baby boomers stopped working.

"A very worrying trend is that some seniors may not be receiving health care when they need it because they have been forced to cut their spending,'' he said.

"The cost of essentials has gone up and the sheer size of the increase over the past five years has really knocked people around.''

Mr O'Neill said more baby-boomers were renting, as divorce forced them to sell the family home.

He said consumer items that cost less now than five years ago - such as electronic goods and baby clothes - did not benefit older people as much as young families.

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Forex

Couldn't agree more with that article and its only one of the reasons many are retiring overseas. Australia is just too expensive to live a comfortable lifestyle.

 

Decent investments are getting harder and harder to find with the RBA continually dropping interest rates. Adding to this is the inappropriate statements by the RBA Governor, Glenn Stevens, talking the AUD down again yesterday. The AUD dropped to 40.65 pesos because of his comments.

 

On top of that if you do happen to make a decent profit on an investment you get taxed to the hilt.

 

Superannuation has its advantages, especially for tax, but the government is continually 'tweaking' and changing the rules so it leaves me with little confidence for the future.

 

I'm seriously thinking the best bet for me is to forget about ever living in Oz again, invest offshore and live permanently in SE Asia.

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tobster

Oz is getting worse and worse and with the govt finding so many ways to get more money from you while giving nothing in return it's just bullshit. I am 49 now and have to wait til I am 67 to get my super now. By then how much can I enjoy the money I am entitled to. Really it's almost worth going thru the bullshit to become a citizen here rather than wait and see how much if any of my super I will see.  feck I hate the fecken Australian government...............

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SomeRandomGuy

its not just the aussie government it is governments everywhere.

But I agree with you. feck them. I do not file tax returns nor do I vote.

why?

Because the moment I do I am on the system at the moment I am not on their system so there for Somerandomguy does not show up so far on their data base. Not sure how long this will be as such but I did not register to vote either.

I am not sure if I am right on this but I have had a little birdy tell me that because of the overlap of the tax system programs in oz. As long as I keep doing what I am doing ( which is nothing) I may just fall thru the cracks... here's hoping

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Hy H

I am 49 now and have to wait til I am 67 to get my super now. By then how much can I enjoy the money I am entitled to.

 

You mean pension by this?

 

 I think after certain age, like 55 n over you can make a declaration of no further taxable income in Oz, this to apply for early release of your superfunds, if you have some.

 

Any of, how it is today to how it will be by the time you`re 67.............don`t hold your breath, I definitely would not plan to rely only on it as financial support.

 

To how successfully rob “my bank” for a million and disappear does often flash thru my mind.

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