Tax Tips for Expatriates Working in Australia

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If you are a foreign resident holds employment in Australia it is strongly advised to seek expert advice on your Australian Taxation liabilities. Expatriates working here will usually be liable for income tax on Australian source income. This includes not only wages but also interest and dividends that have their source in Australia.

if you are an Australian resident for income tax law will depend on your circumstances, and this should be reviewed on a case by case basis.

If you have to pay income tax in Australia, it is important to note that the Australian tax year ends on 30 June, and you'll have to file a tax return by 31 October If you engage a tax agent or accountant is eligible for residential extensions.

There are many considerations that should be banished to understand when negotiating their employment contract and legally reduce their tax. These include (but are not limited to):

Some kind of benefits can be "paid packaged" and lead to significant tax savings. The two most common ones are available for expatriates living away from home allowance (LAFHA) and motor vozila.LAFHA is designed specifically for immigrants to compensate for the additional cost of the stay and movement provides tax exemptions for food and rent. Motor vehicles can also be packaged and can often lead to less tax is paid. Expenses incurred in deriving your income can also be achieved. For example, depreciation on your notebook, stationery, internet and professional subscriptions can often be hard and this in turn will reduce taxable income. It is good practice to keep receipts for all items of expenditure that you want to claim as a tax deduction. There are severe penalties if you get it wrong. There are also a number of tax offsets or rebates that may be claimed to reduce your tax. You will need to consult a tax expert to help you with your eligibility. Australia has a mandatory pension system, where your employer is required to contribute a percentage of their income in Australia, a registered pension fund. There are some limited exceptions to this diaspora, but if you find your employer making these contributions you can claim these back if they permanently leave Australia.

key Australian tax rates for 2011/12 are listed on the Australian Tax page.