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HELP! Options for Australia-based British citizen working remotely for UK company

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BACKGROUND

I am a British citizen planning to migrate from the UK to live and work in Australia later this year.

 

I have been granted a Partner (subclass 100) visa which allows me indefinite length of stay to work and live in Australia. I am sponsored by my spouse who is an Australian citizen.

 

My current employer in London, a UK-based company with no physical presence in Australia, is offering me the opportunity to continue my job working remotely from Australia.

 

I am looking for any guidance on legal requirements and best practice, for both myself and my employer, to facilitate me to continue working for a UK-based company from Australia....whether as a full time employee, a contractor or in some other capacity.

 

QUESTIONS

Is there a situation, without my employer having to set up a business entity in Australia, where I can continue as a full time employee? My company are open to suggestions but due to tax and legal implications this may not be an option.

 

Alternatively I would consider continuing my job as a contractor instead of a FT employee.

 

I am aware I will need a Tax File Number whatever the case but looking for further advice and legal considerations relating to tax, invoicing, ABN(?) etc. Never worked as a contractor before so it's all new to me.

 

  1. In order to operate as a contractor, is it a legal requirement for me to register as a sole trader and apply for an Australian Business Number (ABN)?
  2. Suggestions on the best way to receive my salary? Invoice my employer and ask for payment into my UK bank account? Or into an Australian account? Does it matter which account I am paid into from a legal/tax perspective?
  3. Any other major tax considerations on my income in this situation? Understandably as a sole trader I will need to file a tax return, but anything else I should consider?

I would appreciate any other tips and guidance. Many thanks in advance.

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ATO Certified

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Hi @brisbane_bound,

 

Welcome to our Community!

 

If you're moving to Australia and intend to reside here permanently, you're an Australian resident for tax purposes and if you continue to work for the overseas company remotely from Australia you're employment status will need to be determined between you and the company.

 

As an Australian resident for tax purposes, you'll be required to report any income you've earned from anywhere in the world in your tax return. You'll report this as either salary or wages as an employee or business income as a sole trader.

 

If you choose to work as a sole trader, you'll need to register for an ABN and any other business roles such as GST and invoice the company as required to receive your payments. It's up to you whether you're paid into an overseas bank account or an Australian bank account. However, you'll need to keep in mind, when lodging your income tax return the income you report needs to be converted to Australian dollars.

 

As we provide general advice here on our Community and we can't provide legal advice, you may wish to discuss your situation further with a registered tax agent.

 

Thanks, JodieH.

1 REPLY 1

Best answer

ATO Certified

Community Support

Replies 0

Hi @brisbane_bound,

 

Welcome to our Community!

 

If you're moving to Australia and intend to reside here permanently, you're an Australian resident for tax purposes and if you continue to work for the overseas company remotely from Australia you're employment status will need to be determined between you and the company.

 

As an Australian resident for tax purposes, you'll be required to report any income you've earned from anywhere in the world in your tax return. You'll report this as either salary or wages as an employee or business income as a sole trader.

 

If you choose to work as a sole trader, you'll need to register for an ABN and any other business roles such as GST and invoice the company as required to receive your payments. It's up to you whether you're paid into an overseas bank account or an Australian bank account. However, you'll need to keep in mind, when lodging your income tax return the income you report needs to be converted to Australian dollars.

 

As we provide general advice here on our Community and we can't provide legal advice, you may wish to discuss your situation further with a registered tax agent.

 

Thanks, JodieH.

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