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Re: Residency Tax

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Win
Newbie

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Hi,

 

How to apply tax in a case like the following?

 

Someone is a resident in taxation purposes from 1 July 2018 to 30 September 2018 then decided to move and live in Overseas but renting out property. She has salary income up to September 2018 and rental income received from 1 October 2018 to 30 June 2019. Should she lodge FY2019 tax as a resident or non resident and can she declare both salary income and rental income on the same tax return ? 

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Best answer

Moderator

Replies 0

Hi @Win,

 

Thanks for your question.

 

The information that you have provided indicates that the person would be a resident for part of the year. I would suggest having a look at the page Work out your tax residency.

 

You will also need to work out the Part year tax free threshold. If you become a non-resident during the year your tax free threshold will be less than the full tax free threshold.

 

Thanks

KylieS

 

 

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Devotee Registered Tax Practitioner

Replies 0

Assuming that there is no definite intention to return, and she won't be deemed a resident  -  see ATO instruction  +  recent court cases.

 

2019  =  resident, but fill in Item A2   

 

Date departed Aus,  say 15/11/2018   =>  makes Label N  =  4 months

 

2020 will be non-resident.

Champion

Replies 1

Hi Win,

 

There is no easy answer to a Residency question, and I can only suggest seeing a tax agent that has experience in tax residency (not a plug for us BTW, we avoid residency stuff because we understand it is much more complicated than it appears)

Best answer

Moderator

Replies 0

Hi @Win,

 

Thanks for your question.

 

The information that you have provided indicates that the person would be a resident for part of the year. I would suggest having a look at the page Work out your tax residency.

 

You will also need to work out the Part year tax free threshold. If you become a non-resident during the year your tax free threshold will be less than the full tax free threshold.

 

Thanks

KylieS

 

 

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