04 Aug 2009

The Aussie tax resident

by Darren

In my homeland a resident for tax purposes is a very important issue. If you earn income in Australia it's better to get as much benefit as possible. Individual tax residents in Australia pay less tax than non-residents. For you to be considered a tax resident you must have and maintain a permanent address in Australia and have lived in Australia for greater than 183 days during the year. In addition other factors are taken into account such as frequency of travel to Australia, family or business/employment ties with Australia and whether you are a contributing member to a superannuation fund. If you come to Australia under a business skills program then there is a strong indication that you have the intention to reside in Australia and as such would be deemed a resident. So what is the impact of residency to you? I will discuss this in detail in the coming weeks and months but at the high level a non resident individual will be tax at a starting rate of 29% for every dollar earned. As income increases so does the rate. A resident on the other hand is taxed at lower rates and has an initial tax free amount for the first $6000 earned. A company is a resident if it was incorporated or management and control is exercised in Australia. If you as a director of a company, manage and control your business and hold your board meetings in Australia then the company will be deemed resident. Control and management does not mean the day to day operations of your business.

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  • This is a very useful information as I was planning to expand my business to Australia. Thank you very much for sharing.

    09/08/05 06:47 AM

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