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Greg25(Newbie)Newbie
28 Nov 2023

Hi, I will likely move to Germany end January 2024 for a period of a few years:

The tax year in Germany being different than Australia (based on calendar year over there), my questions are:

* Will I be a resident for tax purposes for both countries in 2024 (as I will have spent more than six months in Australia between 1 Jul 23 and end January but I will also have spent more than 6 months in Germany from end Jan 24 to Dec 24)? If not, I will be a resident of which country?

* Where do I declare / pay tax for my Australian wage income of January 2024? Where do I declare / pay tax for my German wage income from Feb 24 to end June 24 (end of Australian financial year)?

* Same question for rental income in Australia if I put my house under rental from Feb 2024 onwards?

* How many days am I liable for Medicare levy / Medicare surcharge? Can I cancel my Australian private health from end January (when German health cover starts) without impacting my Medicare levy surcharge?


Thanks in advance for your help. I know that Australia / Germany have a tax agreement but I can't really make sense of it...



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612 views
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Most helpful replyATO Certified Response

Deb_ATO(Community Support)Community Support
ATO Certified Response1 Dec 2023

Hi @Greg25


Good luck with the move.

There's a whole lot to go through here.

 

Let’s break it down.

 

If you're leaving Australia, your residency for tax purposes is an important one.

Check out our further info on determining your tax residency.

 

If you determine you're not an Australian resident for tax purposes, you don't need to declare any foreign sourced income in your Australian tax return.

Any Australian source income must be declared in your Australian Tax return.

 

Changes throughout the year for the Medicare levy Surcharge could mean you may have to pay a part year surcharge.

But only if you didn’t have private patient hospital cover for part of the year and your income was above the threshold.

Cancelling your private health insurance should be at your discretion and with the help of the private health insurance provider. 

All replies

Most helpful replyATO Certified Response

Deb_ATO(Community Support)Community Support
ATO Certified Response1 Dec 2023

Hi @Greg25


Good luck with the move.

There's a whole lot to go through here.

 

Let’s break it down.

 

If you're leaving Australia, your residency for tax purposes is an important one.

Check out our further info on determining your tax residency.

 

If you determine you're not an Australian resident for tax purposes, you don't need to declare any foreign sourced income in your Australian tax return.

Any Australian source income must be declared in your Australian Tax return.

 

Changes throughout the year for the Medicare levy Surcharge could mean you may have to pay a part year surcharge.

But only if you didn’t have private patient hospital cover for part of the year and your income was above the threshold.

Cancelling your private health insurance should be at your discretion and with the help of the private health insurance provider. 

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