Going offshore no guarantee of a life with low taxation
Fri Dec 8 2006
The Australian Financial Review --- Page: 58 : 8 December 2006 Original article by Elizabeth Kazi
ABIX Summary
Australians considering working overseas should first consider the tax consequences of such a move. Much hinges on whether Australian residency is maintained or not. Generally, if the intention is to move offshore for more than two years the person will become an Australian non-resident for tax purposes. However, the issue can be complicated by family members staying in Australia. Australian residents are taxed on their worldwide income, but there are credits for foreign taxes paid. Non-residents do not get the $A6,000 tax-free threshold, interest deductions on share holdings or franking credits.
