Australia is a “Tax Haven” for Temporary Visa Holders
There are new opportunities to increase your wealth by moving abroad. Your choice is now a lot wider, with Australia joining the ranks of those countries seeking to attract tax exiles. In fact it must be the only advanced English speaking country that offers all year round sunshine, a pleasant place to live, yet there can be no tax to pay for the privilege.
The Detail
From 1 July 2006, all temporary visa holders are no longer subject to Australian income tax on most foreign income and capital gains. This applies regardless of whether the income etc is remitted to Australia, how long you have had a temporary visa or stay in Australia each year.
The good news rolls on. Owning shares in most Australian public companies and unit trusts will result in tax free Australian capital gains as well.
The Challenges
The remaining issues are to also avoid taxation in the countries where you now live and where the income or capital gains flow from. This requires a detailed knowledge of their local and international tax rules. Moving assets to a third jurisdiction can also help.
In the case of inheritance type taxes, avoid locating assets that you own in those countries. Australia does not impose any inheritance, death, estate, wealth or gift taxes.
The Result
If all of the above can be achieved, then you will be living in a truly “tax haven” type fiscal environment. Your hard earned money will last longer, giving you and your family greater security and purchasing power.
What is Taxed by Whom and Where?
Different items of income and capital gains are treated either as:-
- exempt from all tax;
- still fully taxed in the UK
- just subject to UK tax at source
- are fully taxed in Australia
- tax free in Australia and finally
- never subject to Australian tax.
Contact jeff.bowmantax@gmail.com for the complete list and how to get into the tax free category.
Why Contact Bowman & Associates?
- We are the one stop shop for your UK-Australian tax solutions.
- We can help you identify:-
– totally exempt; and
– partially exempt
types of foreign income and capital gains that Australia won’t tax as well. - You can then plan to earn these.
- For income and gains that are taxed outside Australia, it is possible to restructure ownership of the underlying assets and/or refinance them, to mitigate the local tax charge.
- If there is still a potential Australian tax bill, there are numerous Australian tax shelters in everyday use and other domestic tax reliefs available.
- As you would expect, there is plenty of detail to work through in both the Australian and other country’s tax provisions before a tax-free result can be achieved.
Our Services to You
We offer the following personal tax services to those contemplating leaving the UK:-
- Advising how and when to relocate
- Setting up businesses in both Australia and the UK (or keeping the UK one)
- Structuring the acquisition and disposal of investments
- Holding savings, including pensions, that utilise tax concessions in both the UK and Australia
- Links to registered migration agents who can secure your temporary visa.