Frequently Asked Questions
A Tax File Number can be obtained online once you are physically in Australia, and can be applied for at the Australian Tax Office website, www.ato.gov.au
As an Australian tax resident you are subject to Australian tax on worldwide income wherever it is earned or paid, unless you have a temporary residency visa.
Unless you are living in Australia as the holder of a temporary residency visa yes, you can expect that Australia will tax the income earned with all these types of investments.
Be careful – income may be tax free in the UK but it is generally NOT tax free in Australia.
Temporary resident tax measures were introduced in Australia with effect from 1 July 2006. Individuals who qualify as “temporary residents” are exempt from Australian tax on certain foreign source income and capital gains.
If you are a temporary visaholder you should discuss your situation with an experienced tax advisor, as many tax practitioners are not familiar with the various types of Australian visa.
The 30th of June.
Yes, almost all individuals in Australia are required to complete and lodge a Tax Return.
Tax Returns are to be submitted to the Australian Taxation Office by 31st October following the end of the tax year, unless a Registered Tax Agent is engaged. Tax Agents are permitted to submit tax returns for clients for several months beyond the 31st October deadline.
Yes, we are. Our agent number is 5153 1008.
Depending on the date of your departure most individuals are entitled to a refund of UK tax (assuming you have paid tax throughout the year). A refund arises because you are entitled to UK personal allowances for the full year, even though you have only been resident in the UK for a part year.
Complete a form P85 and send this to HM Revenue and Customs in the UK with the P45 from your last employer. This form can be sent to HM Revenue after you have moved to Australia.
You may have a liability to capital gains tax in Australia upon its eventual sale – obtain a market valuation of the property at the date of your arrival in Australia. This valuation will be your cost base for Australian capital gains tax purposes and will be the reference point from which any capital gain or loss is computed.
There are exemptions from this general rule though – you should discuss your situation with an experienced tax advisor.
You will probably have to complete a UK Tax Return and report the rental income received less any expenses for the tax period 6 April to the following 5 April, and pay UK tax accordingly.
You should also complete and submit a UK Revenue form NRL1 in your capacity as a non-UK resident landlord.
In addition, as an Australian tax resident you will need to report the rental income received less any expenses for the financial year 1 July (or the date you become a tax resident of Australia if later) to the following 30 June on your Australian tax return and pay any Australian taxes due (reduced by any UK tax paid on the same income), unless you have a temporary residency visa.
If you are moving to Australia and are an Australian citizen or permanent visaholder UK source pension income is wholly taxable in Australia under the provisions of the Tax Treaty between the two countries.
The relevant HM Revenue form should be completed and stamped by the Australian Taxation Office as soon as possible following arrival to live in Australia.
If you move to Australia and hold a temporary residency visa (and your partner is not an Australian citizen or permanent resident) your UK pension income remains taxable in the UK, and is not taxable in Australia.
Yes, this is one of our main services to clients in Australia. We prepare UK tax returns in Australia and electronically lodge them with HM Revenue using tax return software.
In most cases no. However, if you leave funds overseas waiting for the rate of exchange to improve, the gain/loss arising from the date of your tax residency to the date the monies are received in Australia might be assessable/deductible in Australia.
No, there are no death duties in Australia. However, as a UK domiciled individual you may be caught by Inheritance Tax in the UK on your worldwide sited assets. (Professional advice is recommended to avoid paying unnecessary taxes).
The registration process you are required to follow will depend on the type of business you are registering in Australia. For example, an Australian limited company must be incorporated with the company regulator, the Australian Securities and Investments Commission, as a result of which an Australian Company Number will be issued. You would then register for an Australian Business Number with the Australian Taxation Office.
By contrast, an Australian branch of an overseas business would apply to ASIC for an Australian Registered Body Number, and would then apply for an ABN.
Businesses that are setting up in Australia would also usually seek registration for Australia’s Goods and Services Tax (broadly equivalent to VAT in the UK, but levied at the rate of 10%) and Pay As You Go Withholding (similar to PAYE in the UK).
Registration for the GST and PAYG is administered by the Australian Taxation Office, and is usually applied for at the same time as the ABN registration.
As a general rule employers in Australia are required to contribute 9% of salary into each employee’s chosen superannuation fund. This is payable on a quarterly basis.
Subject to the level of total annual payroll there may also be an obligation to account for payroll tax to the State or Territory Government in which employees are working.
In the absence of agreement from the Australian Taxation Office all businesses are required to prepare accounts to the 30th of June each year. However, where the Australian business is a branch or subsidiary of an overseas business an application can be lodged with the ATO for the use of what is called a Substituted Accounting Period.
An application for the use of a SAP should be lodged within a short period of the commencement of business in Australia.
Yes, this is one of our main services to business clients. We can arrange for a new limited company to be incorporated in Australia, usually within a business day of receiving details from a client – at no additional cost for a quick incorporation.
We can also arrange all of the above mentioned business registrations and ATO agreement to the use of a Substituted Accounting Period so that the accounts for the Australian business are prepared to the same date as the UK business.
We are also pleased to liaise with existing accountants and tax advisors in the UK.