Australian Tax Treatment of Working Overseas

Working overseas can seem to be a hugely rewarding financial period for many Australian workers, however, there can be many tax traps that need to be avoided.

The way income is earned and taxed overseas can be a complex area, and it is worth seeking advice that can save you from paying additional tax which may mean that the overseas work is not worth doing in the case of paying tax there and paying tax in Australia.

Some of the basics someone considering working overseas should understand is that an Australian resident for tax purposes is taxed on income inside and outside Australia. Therefore the overseas earnings may also be taxed in Australia. Such that would mean your overseas earnings are taxed as well.

Only if you are considered not a resident tax in Australia are you only taxed Australian only income and hence your overseas earnings and not taxed in Australia.

It becomes critical whether or not someone working overseas retains their Australian resident income tax purposes or not. So it is important to get advice in this area. In general, being a non-tax resident of Australia needs to show significant steps taken to move overseas permanently such as moving or selling a house, setting up home overseas, taking your superannuation are a few examples.

So be sure to consider this an important advice before you consider working overseas to avoid a nasty shock of being taxed twice.

Talk to Tax Accounting Adelaide relating to your possible working overseas tax advice On 8337 4460.