Are you sure you are really benefitting financially from the opportunities created by your Non-Australia-Resident status?
Most expatriates are in the fortunate position of having more disposable income than their stay-at-home friends and colleagues.
It makes good sense to direct some of that disposable income to an organised financial programme so that in the future you will enjoy the benefits that you worked for overseas.
As an Australian not resident in Australia you have a wonderful opportunity legally to put your savings to good use in a largely tax free offshore environment.
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THE IDEAL MEDICAL INSURANCE FOR AUSTRALIAN EXPATRIATES
ANZ MEDICAL INSURANCE
Now your costs are reduced because you get tax relief in Thailand on the cost of your premiums.
(And a no-claims bonus to boot)
Most Australians will be familiar with ANZ Insurance - The Australia New Zealand Group is the biggest general insurance provider in Australia and New Zealand.
Now ANZ has its own operation (IAG Ltd) in Thailand.
IAG issues what we believe to be amongst the best Healthcare policies available.
A new tax rule came into force in late 2006 that allows local companies and individuals to claim tax relief on IAG Healthcare premiums.
This means that a major international insurer now issues Thailand based healthcare policies and both corporations and individual members can enjoy full tax relief on the premiums.
Employees who are members of an IAG group scheme will not have premiums taxed as a ‘benefit in kind’.
Other advantages of IAG healthcare policies are:
¶ Australian expats who return home can transfer to ANZ in Australia without loss of benefits.
¶ A ’No Claims’ bonus that increases with each year when no claim is made. You will find this feasture extremely rare in Health Insurtance policies world wide.
¶ Full international cover with choice of benefits.
¶ Entry at ages over 60 not a problem.
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-- STOP PRESS --
MAN AUSTRALIA OM-IP FUNDS
Once again, an opportunity to participate in the latest of an outstanding series of Australia based funds.
Man Investments (Australia) has announced the introduction of
MAN OM-IP 3AHL
From 1 July 2007 to 28 Sep 2009:
World Stocks have fallen approximatley 50%
Man AHL has returned 14.50%
US$100,000 invested into MAN AHL in Dec 1996 would now be worth over US$302,000
* And this is consistent with the performance of over 30 OM-IP Funds during the past 15 years where average growth has been 12% to 15% p.a.
OM-IP 3AHL:
• Aims to generate medium term capital growth in both rising and falling markets.
• Is not correlated with movements in stock=markets, bonds, Interest rates, property or similar traditional investments.
• Accesses more than 170 Int. Markets
• Independent guarantees by Westpac Bank
emsure that none of your investment can be lost
at maturity.
• Proceeds tax-free to non residents of Australia.
Technical Features
¶ Minimum Investment AUD 5,000
¶ Maturity Date, 31 December 2019
¶ Initial charge = ZERO
Act Now
Subscriptions Close on
20 November 2009
To visit our web page with more information please click HERE
or
You can make a specific query via our
'Send us your Query' form
* Past performance is not necessarilly a reliable indicator for the future.
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Taxation for Australian Expatriates
Australia must be one of the world's most pleasant countries in which to live. Perhaps the only real drawback is the extremely high level of taxation.
As a non resident of Australia you are not liable for Australian income tax except for income arising in Australia. For most expatriates their only Australian taxable income is likely to be rent from property owned in Australia and/or interest on bank deposits in Australia.
Some relevant points about tax for Australian expatriates are:
Resident or Non-Resident?
This is not quite such an easy matter as it may seem. Simply being out of Australia for a lengthy period does automatically confer non-resident status.
The residency of an expatriate is determined by several factors such as length of stay overseas, permanent place of abode, living arrangements, habits, employment ties with Australia and other countries and the degree to which the expatriate is integrated into everyday Australian life.
An expatriate who is deemed resident in Australia can still avoid Australian income tax if he has income from employment in a foreign country for a continuous period of at least 91 days. Such income will usually be exempt from tax in Australia unless it takes the form of directors' fees. Foreign allowances, bonuses, commissions, wages, salary, can be exempted.
Tax Filing
If you have income liable to tax in Australia you must file your tax return by 31 October each year. Failure to do so could incur penalty tax and penalty interest leading to a bigger bill in the long run.
Note that even if you have expenses which can be set against income (e.g. mortgage interest against rental income) so that reduce your net taxable income reduces to nil, a tax return must be lodged.
In any case, it pays to make the return since 'negative gearing' on an Australian property leading to a loss rather than a profit can be held over to set against future positive incomes.
The above tax notes represent our understanding of Australian tax matters at September 2006 and it should be remembered that rules can change. They are a brief outline of some salient points. The subject can be complex and any expatriate who feels there may be uncertainty about his residence status should seek professional advice.
Retirement Planning
Even the expatriate who expects only to spend 3 to 5 years overseas makes a big mistake if he/she makes no retirement provision during that time.
The most important single factor in planning for retirement or any other future financial need, is the amount of time remaining until the money is required. Neglecting to set aside for retirement for, say, 3 years during one's thirties is like taking away about 10 years' contributions during one's fifties.
To see our section on retirement please click
HERE
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Property in Australia
Residential property in Australia is one of the most popular investments amongst Australian expatriates everywhere. The attraction is not just the satisfaction of holding a tangible asset which can not only provide a rental income but should increase in value as the years go on.
The added benefit is the very favourable tax schedule that applies to rented property.
The expatriate who rents out a property in Australia will become liable for Australian income tax on the rental income. But against that he can set all the expenses of owning and operating the property.
Such expenses will include Insurance, Repairs & Maintenance, Agents Fees, Advertising and so on. But probably the biggest single item of expense will the interest on a mortgage used to acquire the property. You can set 100% of that interest against rental income.
Usually all these expenses will mean that no tax is payable.
Furthermore if the total expenses exceed the rental income so that a loss is made then any year's loss can be carried forward indefinitely to set against future income including earned income if one resumes employment in Australia.
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If you already have a property in Australia and plan to buy another, the most cost and tax efficient method might be to remortgage the existing property for a higher amount and use all or part of the money raised as the deposit on the new house.
The two rental incomes combined may well be enough to cover or almost cover the running expenses for noth properties.
We can help you assess the merits of such an arrangement and we have contacts with leading banks that provide fast efficient service to expatriates.
for Australian Expats
