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Non-Resident Tax on Bank Interest

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Newbie

Views 1278

Replies 6

I have been a non-resident of Australia for the last 10+ years.

 

Prior to leaving Australia, I had a bank account with some money which continued to earn interest over the years.

The bank did not withhold the 10% non-resident tax, as I have a TFN registered and I had not update the residential address to an overseas address out of convenience.

 

According to ATO's website, non-residents with only bank interest as income are not normally required to lodge Tax Returns.

 

However, for my case, should I lodge prior yearTax Returns and declare the Bank Interest I have earned in those year so I can pay the 10% tax?

 

Or should I talk to my bank and ask them to withhold the 10% tax for the past 10+ years in which I have earned interest?

 

 

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Moderator

Replies 0

Hi @matx,

 

Welcome to our Community! That's a good question!

 

We can provide general advice on this forum and I can see that you've looked through our web content already. I'd recommend you phone or Skype us from overseas on +61 2 6216 1111 between 8am - 5pm (AEST), Monday to Friday and let the operator know you are calling from overseas to request a call-back. We will then have access to your tax records and can give you more tailored advice on how to fix this up.

 

In the meantime, I would also recommend getting in touch with your bank to let them know your overseas address as they could start withholding tax at 47%.

 

Thanks, Nate

 

 

 

 

 

6 REPLIES 6
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Best answer

Moderator

Replies 0

Hi @matx,

 

Welcome to our Community! That's a good question!

 

We can provide general advice on this forum and I can see that you've looked through our web content already. I'd recommend you phone or Skype us from overseas on +61 2 6216 1111 between 8am - 5pm (AEST), Monday to Friday and let the operator know you are calling from overseas to request a call-back. We will then have access to your tax records and can give you more tailored advice on how to fix this up.

 

In the meantime, I would also recommend getting in touch with your bank to let them know your overseas address as they could start withholding tax at 47%.

 

Thanks, Nate

 

 

 

 

 

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Newbie

Replies 4

I have the same question, please answer this question.

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Newbie

Replies 3

I ended up submitting tax returns for the past 10 years declaring interest I earned in each year. I posted all of them to ATO together with a letter explaining what had happened. I had to pay the 10% tax for the total interest earned but they didn't penalise me.

I didn't call them at all.

Hope it helps.
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Newbie

Replies 2

Thank you for your reply. However, my bank interests are only 20 or 30 dollars or at most 70 dollars each tax year. Is the work worthy, or should I just go to the bank and ask them to back deduct the interests for the years? Thank you.

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Newbie

Replies 0

I think just contact ATO and see what they say first. Just explain to them what had happened. I dont think you will get penalty.

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ATO Certified

Community Support

Replies 0

 @Baby

 

Thanks for your question.

 

You could do what @matx did but we recommend that you get in touch with your financial institution first to see what they can do. Alternatively you could get in touch with us. Refer to our previous response in this thread for more information.

 

If your financial institution will only withhold tax for this financial year and you decide to submit tax returns for the previous applicable years, the special circumstances and glossary 2019 page of our website explains what you need to do.

 

Thanks,

 

ChrisR