For Overseas Clients
Australian Taxation Advice for Non Residents and Tax Returns
We provide a number of services to non-resident clients around all matters concerning Australian taxation advice and tax returns. Including non residents seeking investment advice and assistance with tax obligations, as well as other financial interests.
Through our complete end-to-end process, we’ll work with you remotely to ensure your legal requirements are met, while minimising your tax obligations.
Currently, we have over 500 overseas clients using our services.
Australian Tax Advice for Non Residents FAQs
You may wish to view our video around these questions through YouTube, the video title is "Taxation Advice for Australians Overseas A Review of Tax for Australian Residents Abroad".
Personal Income Tax for Non residents
Do I need a New Tax File Number? (T.F.N):
In order to lodge your Tax return, if you are overseas, you must first have an Australian Tax File Number (TFN), we can assist you with attaining a TFN if required. It involves us part-completing an application form on your behalf with a guide on the steps you must follow to complete the remainder of the form. In addition it will generally involve a visit to the nearest Australian embassy or consulate with suitable identification, where the documentation is certified and the form is sent back to us. We then forward it to the Australian Taxation Office, who then liaise with any further information they require.
Retrieving an existing TFN is more involved than obtaining a new one.
Old TFNs are archived by the Australian Taxation Office due to the risk of fraud meaning more contacts with the Australian Taxation Office to retrieve and reactivate them.
• Issuing a new TFN is sometimes more straight forward
• Old TFNs are firstly archived by the ATO meaning more contact with the ATO to reactivate a TFN
• Due to fraud the ATO requires documentation and other evidence to be presented such as former details of the issuance or documentation.
• The process and timeframe is at the ATO’s discretion.
Why do I need to Lodge a Tax return as a Non resident?
If you derive “Australian sourced income” linked to Australia for example your property, you will need to declare it via an Australian Income Tax Return. An Australian Income Tax Return needs to be prepared and lodged for each financial year (1st July -30th June).
Non-residents and Australian Property Taxation Issues
Do I need to lodge a return if I have participated in the National Rental Affordability Scheme or NRAS?
Yes, in order to attain your NRAS offset, which is considered a refundable tax offset by the ATO you must lodge. This is how the Federal Government is providing support for this Housing arrangement rather than cash. It is necessary to attain a letter from the organization managing the NRAS to claim the offset.
What are the Tax rates applicable to Non residents?
From the 1st July 2016 a tax rate of 32.5 per cent is applied to all taxable income below $80,000.
According to the ATO website foreign residents will not be required to pay the Medicare levy and the rate does not include the Temporary Budget Repair Levy; this levy is payable at a rate of 2% for taxable incomes over $180,000.
Is there a removal of the CGT discount for non-residents?
For non residents who held properties before the 8th May 2012, a 50% CGT discount on capital gains applies. The discount will remain available for capital gains accrued to this date, which will be measured by a valuation of the assets held as at that date.
How long is the A.T.O. Income tax return processing time?
Approximately two weeks after the lodgment of your return, we will receive notice of assessment together with the payment slip/refund notice and the payment instructions
What is a PAYG Instalment?
In the matter of Australian taxation advice for non residents; the PAYG instalments are a system for paying instalments towards your expected tax liability on your investment income for the current income year. For rental property owners this is usually applicable when your rental income exceeds expenses and all prior year losses have been absorbed.
Your actual tax liability is worked out when your annual income tax return is assessed. Your PAYG instalments for the year are credited against your assessed tax to determine whether you owe more tax or are owed a refund.
Regardless of your residential status you are required to pay the PAYG instalment.
What is the withholding tax?
The withholding tax should be deducted from your bank deposits interest at the rate of 10%. If this is the case there is no need to include the interest in your return. Only if the rate is more than 10% would you be entitled to a refund of the excess over 10%. The ATO once again has this explained. For a detailed examination of your position please contact us on +61 3 9379 4040.
What are the implications if I purchase a property in the name of an offshore company?
There is no entitlement to the 50% Capital Gains Tax Concession on sale of the property and tax is payable on profit generated and any eventual Capital Gain is 30%.
The company will also need to be registered as Foreign Entity with ASIC (Australian Securities and Investment Commission). This involves lodging Annual Returns with ASIC on top of Annual Income Tax Returns with Australian Taxation Office. To lodge Annual Return with ASIC will cost $1,069.00 Per Annum (ASIC fees only). This will also encounter larger accountancy fees.
What is the Property Purchase Schedule?
The property purchase schedule is used as the cost base for your capital gains tax calculation upon sale. It takes information from a variety of purchase documents, reconciles and checks Solicitors statements and ultimately is put into a format so that it is understandable and a Cost base figure is established in accordance with tax legislation. It is held by us until the sale of the asset occurs, as an alternative to trying to put together all the necessary documents years later
How do I find TJD Accounting Services?
Directions to our office from Melbourne Airport are:
To get to our office, the most direct way is to leave Melbourne Airport on the M2 towards Melbourne.
• Exit left on the Matthews Ave/ Essendon Airport ramp about 6km from the Airport
• Turn Right onto English Street (this is the exit ramp over the M2).
• Turn left onto Matthews Ave and head down 1.2km to a T intersection.
• Turn left onto Keilor Rd. Go through the next intersection ( Hoffmans Rd).
• Proceed 400m and we are on the right, opposite BMTech (BMW repairs) and BWS (a bottle shop).
or just search for TJD Accounting Services, Essendon on Google Maps.
Parking is available on Keilor Rd.
Do you want to know more?
To find out how we can help you, phone us on +61 3 9379 4040 or click here to book a free consultation.
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