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BANGKOK 26 May 2019 16:57
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Australian becoming a NON Resident for tax purposes

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I'm an Australian resident currently residing in Thailand. Before I left Australia I did their tax wizard to determine my residency and for five year period I'm considered an Australian Resident for tax purposes. In the near future this is going to change and I will become a NON Resident for tax purposes and I want to be in the best position possible when that time comes. I did a fair bit of research regarding this prior to my departure from Australia as I have a number of considerations with regards to Investments. But as anybody that has been through this recognizes that its far from clear cut.

 

So the Investments that I have in Australia are shares, a rental property and my own personal home and my preference would to be to continue to derive my income from Australia which is currently the case. I am aware that there is a change potentially happening regarding the sale of your personal home that I think is being discussed in Parliament now but I don't want to really include this as part of my question as currently it is an unknown.

 

I guess I'm after Australians that have been through this with either shares or property or both and what they learned along the way. It's obviously very complex so I'm not expecting comprehensive answers but I am hoping to hear from anybody who has been through the same process and what they did and what they would possibly do differently.

 

Thanks in Advance

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Australian government recently tightened up all the laws in this regard and not in our favor.

 

the only way to stay resident for tax purposes is to return back to Oz frequently or to spend more time in Oz .

 

i remember doing a post on the very same subject, got a letter from westpac confirming I am no longer resident and applying new tax rates. 

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19 hours ago, BestB said:

Australian government recently tightened up all the laws in this regard and not in our favor.

 

the only way to stay resident for tax purposes is to return back to Oz frequently or to spend more time in Oz .

 

i remember doing a post on the very same subject, got a letter from westpac confirming I am no longer resident and applying new tax rates. 

Bad enough not to qualify for aged pension while living in SE Asa now the a-holes want more blood. I had my Oz bank in Perth challenge me on this subject of non residence status. So I used my mates address in perth and made up a phone number; obviously they just fill in a form and no one checks it. Only assets I have are defence pensions paid into that bank; because government agencies will not pay into a Thai bank account.

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Posted (edited)
28 minutes ago, legend49 said:

government agencies will not pay into a Thai bank account.

Just to clarify, as an example, those who meet the criteria for Off Shore payment of the Age Pension can nominate a Thai Bank and are paid based on the exchange rate from the Reserve Bank of Australia.

 

https://www.humanservices.gov.au/individuals/services/centrelink/age-pension/managing-your-payment/if-you-travel-outside-australia/pension-rates-payable-outside-australia

Edited by simple1
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There are answers to your questions on the ATO website.  If you depart Australia with the intention of permanently residing overseas then you may be deemed an Australian non-resident for tax purposes, in which case there is a specific tax rate applied depending on your assets and annual income.

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4 minutes ago, simple1 said:

Just to clarify, as an example, those who meet the criteria for Off Shore payment of the Age Pension can nominate a Thai Bank and are paid based on the exchange rate from the Reserve Bank of Australia.

 

https://www.humanservices.gov.au/individuals/services/centrelink/age-pension/managing-your-payment/if-you-travel-outside-australia/pension-rates-payable-outside-australia

I think this poster mentioned a Defence Pension which would come from Comsuper. They require an Australian bank account.

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It’s very clear cut. After a 2 year grace period, if you are out of the country for more than 6 months and 1 day, you are a non resident for tax purposes. 

And as such, personal tax is much higher than a resident , but income earned from interest is just a 10% tax. 

 

Anyone that craps on about cheating the system is in for some curry. They know from your passport which is linked to most govt depts. 

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What happens if all your savings are in a super account and you are over 60 y/o? There is no tax on Super Pensions when you are over 60. So can you draw that Super Pension for the rest of your life and live in Thailand with no complications?

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Posted (edited)
2 hours ago, simple1 said:

Just to clarify, as an example, those who meet the criteria for Off Shore payment of the Age Pension can nominate a Thai Bank and are paid based on the exchange rate from the Reserve Bank of Australia.

 

https://www.humanservices.gov.au/individuals/services/centrelink/age-pension/managing-your-payment/if-you-travel-outside-australia/pension-rates-payable-outside-australia

partly true, but definitely WRONG with regards to exchange rate from the RBA.  Centrelink (Human Services) use Citibank as their official departmental bank, and despite the web site saying they use RBA exchange rates, they use Citibank exchange rates, and Citibank skim big time on the rates for their own profit.  I've had lengthy emails and telephone conversations with Human Services over the exchange rate issue, and it wasn't until I provided them with a spreadsheet showing how much I was receiving, and compared the Aged Pension payment using both the RBA exchange rate & the rate I was actually being paid at, that someone actually got off their backside and investigated. That was when the information about using the Citibank exchange rate came to the surface.  They did promise to remove the reference to the RBA exchange rate from their web site, but that obviously hasn't happened.

 

 

Edited by TigerandDog
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I am in the same position. I phoned Centrelink and asked how long I needed to be out of the country before I was deemed a non-resident for pension purposes. They said that there was not a specified time but they generally took two years from first leaving to be the cut off to being a resident. I believe I can return every six months for two years and still be classed as a resident, after that I need to remain in Australia for six months and 1 day every year to remain a resident. My big problem is that because I am selling my home my assets take me well above the level to get a pension. If I were to remain in Australia and buy a new family home the home would not be included with my assets. If I were to buy a condo to live in in BKK Centrelink will regard the condo as an income producing asset and still not give me a pension.

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2 hours ago, ThaiBunny said:

Rubbish. The Tax Office position, supported by the Australia-Thailand Double Tax Treaty is that if you are receiving income from Australia then you are automatically and forever a tax resident of Australia. Where you are ordinarily resident is completely and utterly irrelevant. The tests that some bush lawyers here rely on to "prove" their status are designed for those who claim not to be tax resident in Australia but tax resident somewhere else and ignore completely the fact that the Tax Treaty even exists. 

Partly true.. Yes you are tax resident, but only for the domestic sourced income.. 

 

Being not ordinarily resident means your non domestic sourced income is (likely) treated differently. 

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