Australian Treasurer Wayne Swan announced in his Budget on the 12th May 2009 that a number of anti tax avoidance measures would be introduced including changes to the Foreign Income rules.
The proposed changes scrap the current tax exemption on Foreign income by Australian residents doing offshore work stints of 90 dyas or more, where they are exempt from tax on this income provided they pay tax in the country of earning.
The new changes will make these earnings taxable in Australia with a full tax credit for any tax paid in the offshore country.
This has caused a stir in the Expatriate community as many Australians living and working aborad feared that this may mean their offshore earnings may now be taxable.
This is not the case, as the changes only apply to people living in Australia and venturing overseas on short term work assignments.
Australians genuinely living overseas on a long term basis are classed usually as Non Residents for tax purposes and therefor the changes to the exempt income rules will not affect them as they did not apply in the first case.
For many Australians currently commuting for work offshore, there may be motivation for them the move permanently overseas in order to not have there incomes taxed in Australia under the new rules.
aussieproperty.com is presenting a series of seminars on the Budget Announcements around the world through may & June 2009, which will fully explain this and other changes from the Budget. Click here to review the seminar schedule and reserve your seat.
The proposed changes scrap the current tax exemption on Foreign income by Australian residents doing offshore work stints of 90 dyas or more, where they are exempt from tax on this income provided they pay tax in the country of earning.
The new changes will make these earnings taxable in Australia with a full tax credit for any tax paid in the offshore country.
This has caused a stir in the Expatriate community as many Australians living and working aborad feared that this may mean their offshore earnings may now be taxable.
This is not the case, as the changes only apply to people living in Australia and venturing overseas on short term work assignments.
Australians genuinely living overseas on a long term basis are classed usually as Non Residents for tax purposes and therefor the changes to the exempt income rules will not affect them as they did not apply in the first case.
For many Australians currently commuting for work offshore, there may be motivation for them the move permanently overseas in order to not have there incomes taxed in Australia under the new rules.
aussieproperty.com is presenting a series of seminars on the Budget Announcements around the world through may & June 2009, which will fully explain this and other changes from the Budget. Click here to review the seminar schedule and reserve your seat.
