Sending money back to Australia

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  1. #1

    Join Date
    Nov 2006
    Posts
    5

    Sending money back to Australia

    Hi everyone

    I hope you can help me.

    I will start sending money back to my Australia bank account. I will probably send back around 2k-3kUSD per month. What will be the tax implications for doing this?

    Can anyone also recommend an Australian Tax Specialist in HK?

    Regards


  2. #2

    Join Date
    Jun 2007
    Location
    Ex Sai Kunger Sunny Qld for now
    Posts
    8,408

    If you didn't earn the money in Australia and can prove you have not lived there for a period longer than 6 months, you're 100% tax free.

    Why do you need a tax specialist to know that ?

    Its also pretty clear on the ATO website in regard to Australians working abroad, in which we are no longer recognised as taxable residents after 6 months away.

    However, if you fall under the 6 month rule you will be subject to dual taxation qithin, but not there after.

    Last edited by Skyhook; 16-03-2008 at 08:14 PM.

  3. #3

    Join Date
    Aug 2007
    Posts
    1

    I would say the Australian tax rules are not as simple as a 6 month test, this is but one of a few tests to determine residency for taxation purposes.

    There is also domocile test - ie if your normal permanent residence is in Australia - even if you move overseas for a year or two it may still be viewed that you are domocile in Australia. Sending money back to Australia monthly would be a pretty strong indication that you do intend on returning to Australia at some time so you may still be a resident.


  4. #4

    Join Date
    Mar 2007
    Location
    Gold Coast Marina
    Posts
    17,862

    I suspect that it all depends on what you are doing

    with the money. If it sits in a savings account, this might not indicate a close link. If you are using it to fund a mortgage, pay kids school fees , look after your aging parents or whatnot, you are clearly highlighting a continuing link with Aus. We sold our Aus house when we left, and closed a number of bank accounts, to make it clear that we had "gone" - so I think you probably do need tax advise. If all you are doing is sending money back for saving, just get a multicurrency account here (HSBC do them as standard, as one example) and you can convert it into AUD and earn AUD interest rates right here in HK......