Announcements
We understand 2020 has been difficult and we're here to try and make it easier during tax time. Search posts, read articles or ask a question.

ATO Community

Remote-working for UK company from Australia on 482 (spouse) visa

Highlighted

Newbie

Views 314

Replies 3

Hello there,

I'm writing with a question re: remote working for a UK company while based in Oz.

Once the borders reopen, my family will be relocating to Melbourne from the UK. My husband has an employee-sponsored Temporary Skill Shortage (subclass 482), which also gives me the right to live/work in Australia over a 3 year period. Our plan is to apply for permanent residence once the 3 years is up. 

I currently work for a UK-based NGO, who have said they would be happy for me to continue my work remotely while living in Australia (i.e. working from home and fulfilling regular duties with international partners). My NGO did previously have a business entity in Australia, however they no longer do - so I would be the sole employee working in Australia for an international NGO, headquartered in the UK. My preference (and that of my employer) is to have me remain employed by the UK entity and paid into my same UK bank account. I would like to keep contributing to my UK pension (and have my employer do the same). It would seem easiest to have me continuing to pay UK tax and NI, assuming that the Aust/UK Tax Treaty means I wouldn't be taxed twice. Given all this context, my questions are:

1) Am I able to decide where I would like to be paid (e.g. UK or Aus bank account) and which taxes I pay? Or does another entity decide this for me? (e.g. HMRC or Australian tax authority)

2) Are there any legal/tax issues that limit my ability to maintain my UK employment status while living in Australia (understanding I need to get a tax number and file a tax return in Oz)?

3) Is there a limit on the length of time this remote-working arrangement can remain in place? I am currently working on a grant-funded project that ends August 2021. My primary concern is to complete the project -- however, I wonder if I could continue working for the UK company beyond August 2021 (or indefinitely) while living in Australia? Again -- assuming I am filing all the correct paperwork and pay the correct tax in both countries.

4) Are there any steps/costs my employer needs to take/incur in order to enable this remote working arrangement to happen? As I am moving to Australia for personal/family reasons, I am doing my best to ease any burden on my employer. 

Sincere thanks in advance for your help!

Hope everyone is healthy and well in their relevant self-isolating corners!

-Sswan7

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

Community Support

Replies 2

Hi @Swan7 

 

Welcome to the ATO community.

Australia's income tax system is based on self-assessment

To understand your tax situation, you must first work out if you will be an Australian resident for tax purposes.

Once that is known then we can assit you with information to answer your questions.

Hope that helps

Ari

3 REPLIES 3
Highlighted

Best answer

Community Support

Replies 2

Hi @Swan7 

 

Welcome to the ATO community.

Australia's income tax system is based on self-assessment

To understand your tax situation, you must first work out if you will be an Australian resident for tax purposes.

Once that is known then we can assit you with information to answer your questions.

Hope that helps

Ari

Highlighted

Newbie

Replies 1

Hi Ari,

Thanks very much for your reply.

As our family intend to be based out of Melbourne (children will enrol in school, we will rent a house, etc), while my husband works at a local university for 2+ years, I assume we will be considered Australian residents for tax purposes. Our plan is to apply for PR once we're allowed.

I'd be MOST grateful if you could provide answers to my four questions. Thank you in advance for your help!

-Swan7

Highlighted

Community Support

Replies 0

Hi @Swan7,

 

Thank you for reaching out to us. Please be aware even if you are not a permanent resident does not mean you are not an Australian resident for tax purposes. You will need to access the Residency information to give yourself a determination. From what you are saying I would say you will be an Australian resident for tax purposes. In the event that you are you will need to lodge an Australian tax return declaring your worldwide income, you will also report the amount of tax you paid overseas. However you can report a Foreign Income Tax offset (FITO).

 

Generally you can have your working arrangements set up the way you choose whilst living in Australia. There is no fixed time arrangement. You may have reporting requirements in the country you are earning your income.

 

Your employer would need to look into their requirements for paying an employee that's residing overseas. 

 

Hope this helps.

 

Regards,

JodieR.