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Personal AU and foreign UK employer taxation requirements

Newbie

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Replies 4

Hello,

 

Both my wife and I are Australian citizens albeit previously deemed to be non residents for taxation purposes as we have resided and worked in the UK for over 10 years.

 

My family and I returned to Western Australia in late December 2020 and have now also just sold our assets (including house) in the UK and therefore now have no legitimate ties in the UK. We are now residing here as a result of the coronavirus pandemic for the foreseeable future and my wife has just been deemed unfit to fly. 

 

Can you please confirm if any tax implications will or could apply for our UK employers that have no presence or footprint in Australia as we continue to work remotely from Australia and are still being paid GBP into our UK accounts as we are unsure if we will be able to continue to work for our employers should there be any taxation implications or mandatory requirements despite us already personally lodging AU taxation returns. 

 

Any guidance and confirmation of requirements for both our personal and employers would be appreciated. 

Thanking you in advance.

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ATO Community Support

Replies 3

Hi @bda,

 

If you became a resident for tax purposes in Dec 2020, the website advises - When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time.

 

If you just sold your main residence and did not purchase a 2nd property since arriving here, you can apply the 6yr absence rule and should not be liable for capital gains tax (CGT).

 

As far as receiving foreign income, you would need to report your worldwide income so it would be reportable here. If you have already paid tax on it overseas you may be able to request a foreign income tax offset (FITO). 

 

Your employer would need to investigate their obligations for employing an Australian resident in Australia from paying your Super to their own reporting requirements. You can however use the links below.

 

Links-

Becoming a resident.

6yr absence rule for OS property.

Super for employers.

Bilateral agreements.

Previous post for employer obligations.

Foreign income tax offset.

 

All the best.

4 REPLIES 4

Most helpful response

ATO Community Support

Replies 3

Hi @bda,

 

If you became a resident for tax purposes in Dec 2020, the website advises - When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time.

 

If you just sold your main residence and did not purchase a 2nd property since arriving here, you can apply the 6yr absence rule and should not be liable for capital gains tax (CGT).

 

As far as receiving foreign income, you would need to report your worldwide income so it would be reportable here. If you have already paid tax on it overseas you may be able to request a foreign income tax offset (FITO). 

 

Your employer would need to investigate their obligations for employing an Australian resident in Australia from paying your Super to their own reporting requirements. You can however use the links below.

 

Links-

Becoming a resident.

6yr absence rule for OS property.

Super for employers.

Bilateral agreements.

Previous post for employer obligations.

Foreign income tax offset.

 

All the best.

Newbie

Replies 2

Hi Jodie, keen to obtain some clarify on my potential UK employer responsibilities noting I'm sure that I'm not the first employee to work remotely from Perth for a UK company that no longer has no foot print or any other presence in Australia. Any assistance would be muchly appreciated noting although I'm currently working my notice period ... if there was any obligations and/or requirements I would like to know to verify same for my employers HR department. Many thanks. bda.

Newbie

Replies 1

... in addition to the above ... as I am keen to continue working for said employer and would like to withdraw my resignation. Many thanks.

ATO Community Support

Replies 0

Hi @bda,

 

I have provided some links in my original post, these include Super for employers and bilateral agreements. You can also advise your employer to use the link below. This provides information in relation to an employer's tax and super obligations if they employ an individual living in Australia.

 

Link-

Tax and super obligations for foreign employers.

 

All the best.