Pre Departure - Moving to Australia
If you are leaving the UK or another overseas country and migrating to Australia, then as an expat you may have important tax planning and compliance questions to consider.
This can be a particular issue where a property in the overseas country is being retained and rented.
For those who are non-resident in the UK for tax purposes and are selling a UK residential property need to also consider their capital gains tax position in Australia and reporting obligations both in Australia and the UK.
As an Australian tax resident everyone is required to lodge an Australian tax return with the Australian Taxation Office (ATO) to report your worldwide income regardless of whether this income is remitted to Australia.
The Australian tax year runs from 1st July to 30th June.
You will need to apply for a tax file number in order to lodge an Australian tax return.
If your income is below the tax free threshold ($18,200 for 2020/2021) you are still required to report your income to the ATO however, you may not need to lodge a tax return. You can report your income by lodging a CU non lodgment form to the ATO advising them that your income is below the threshold.
Moving to Australia on a permanent or temporary basis means you will be dealing with a new tax system and a non resident tax return, we GM tax can handle it for you.
You can apply via the ATO website.
The filing deadline will vary depending of whether you are lodging the tax return yourself of via a registered tax agent:
- Lodging yourself the filing deadline is 31 October.
- Lodging via a tax agent the filing deadline is May the following year, if all your prior year tax returns have been lodged on time.
We at GM Tax provide fixed fee quotes for advisory work and tax returns.
If you are moving to Australia and would like a fixed fee proposal from a firm of UK & Australian tax advisors that understands the issues affecting individuals arriving in Australia please complete our online enquiry via our contact us button or by calling a GM Tax office closest to you.
GM Tax also offers the following services:
- Tax planning advice and guidance with regards to your residency status in Australia and the UK, eligibility for split year treatment and also domicile status in the context of Inheritance Tax (IHT) planning.
- Preparation of UK tax returns, with all returns submitted to HM Revenue electronically where possible.
- Advice on the tax position where a property in the UK is being let while a taxpayer is living overseas.
- Preparation of Australian tax returns, with all returns submitted to the ATO electronically where possible.
- Assistance to ensure UK or overseas sourced income of those who are non-residents of the UK is properly taxed and is not taxed twice, or double taxed.
- This last point is particularly relevant to those who have UK or overseas sourced income or capital gains which may also be subject to tax in the country in which the taxpayer is now resident.