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Re: Working whilst stuck overseas COVID-19

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Hi all,

 

I am currently stuck overseas due to COVID-19 and I have quickly run out of money due to all the expenses of being abroad. I was wondering whether I am able to work for an Australian company remotely? I am an Australian citizen, and I am currently in the United States.

 

Thanks in advance!

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Hi @cth2299,

 

Sorry to hear about your current situation resulting from COVID-19. It's been a tough time for those stranded away from home.

 

You certainly can work remotely for an Australian company while you're in the US, providing this arrangement is appropriate and agreed upon by the company Smiley Happy

 

In regards to your Australian tax obligations, you will need to determine your tax residency status. This is different to your actual residency status.

 

Australian residents for tax purposes need to declare income derived from worldwide sources (for example, if you earn interest in a foreign bank or receive other forms of income from overseas). If your foreign income has been taxed by an overseas country, then you may be able to claim a foreign tax offset on your Australian tax return. Australia has a tax treaty with the US which should reduce or prevent your income from being taxed twice.

 

Foreign residents for Australian tax purposes only need to declare income earned from Australian sources.

 

We provide the necessary information and tools on our website to help you work out your tax residency, as it's a self-determined assessment that we aren't able to conduct for you. I'll include some links further down to the tax residency tests and online 'questions and answers' determination tool to help you form an answer. Please note that the '183-day test' only applies to people arriving in Australia.

 

Some more information can be found on our webpage 'Employing Australians overseas'. This discusses aspects such as tax withholding and superannuation contributions by your Australian employer.

 

Hopefully this is helpful and wishing you the best of luck!

 

Links

ATO website- Your tax residency

ATO website- Australian and foreign resident examples

ATO website- Tax treaties

ATO website- Employing Australians overseas

 

RachATO

 

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @cth2299,

 

Sorry to hear about your current situation resulting from COVID-19. It's been a tough time for those stranded away from home.

 

You certainly can work remotely for an Australian company while you're in the US, providing this arrangement is appropriate and agreed upon by the company Smiley Happy

 

In regards to your Australian tax obligations, you will need to determine your tax residency status. This is different to your actual residency status.

 

Australian residents for tax purposes need to declare income derived from worldwide sources (for example, if you earn interest in a foreign bank or receive other forms of income from overseas). If your foreign income has been taxed by an overseas country, then you may be able to claim a foreign tax offset on your Australian tax return. Australia has a tax treaty with the US which should reduce or prevent your income from being taxed twice.

 

Foreign residents for Australian tax purposes only need to declare income earned from Australian sources.

 

We provide the necessary information and tools on our website to help you work out your tax residency, as it's a self-determined assessment that we aren't able to conduct for you. I'll include some links further down to the tax residency tests and online 'questions and answers' determination tool to help you form an answer. Please note that the '183-day test' only applies to people arriving in Australia.

 

Some more information can be found on our webpage 'Employing Australians overseas'. This discusses aspects such as tax withholding and superannuation contributions by your Australian employer.

 

Hopefully this is helpful and wishing you the best of luck!

 

Links

ATO website- Your tax residency

ATO website- Australian and foreign resident examples

ATO website- Tax treaties

ATO website- Employing Australians overseas

 

RachATO