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Australia Faces Its Demons


Te Mata

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HOLA441
9 hours ago, Society of fools said:

 

There is another aspect of the proposed new legislation that appears pretty harsh, and that is that any Aussie who goes overseas to work in a country which does not have a double tax treaty with Australia, for example Hong Kong, or the United Arab Emirates, or Qatar, will retain their Australian tax residency for 3 whole years. 

 

What does tax residency mean?

That they are still liable for tax even if they are out of the country 

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HOLA442
2 hours ago, Society of fools said:

I would expect that as the UK, USA, Australia, Canada, France, Germany etc start taxing their citizens ever more, this approach will become ever more popular amongst those people who have balls, brains, a certain amount of cash and a sense of adventure. 

US already taxes citizens globally, so you'll pay the difference in (federal) tax and whatever you are paying locally, if lower.

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HOLA443
9 hours ago, shlomo said:

What does tax residency mean?

That they are still liable for tax even if they are out of the country 

Nope Shlomo, you lose tax residency if you leave your country and move elsewhere on a more or less permanent basis. 

You are then liable for taxes in the original country only on income or capital gains ( sometimes) that you make in that original country, not on anything you make outside it. 

Each country assesses tax residency differently and Australia for the last 80 + years has had one of the harshest regimes, because they don't look simply at what your ties are to Australia, but also what your ties are to the other country you claim to be living in. In recent years this has meant that a very aggressive ATO has been auditing expatriates who in several cases have lived overseas for a decade, and then claiming that they are in fact Australian tax residents and need to pay back taxes on everything they have earned in places like the Emirates, Hong Kong etc, where income tax is either zero or very low. 

This idiocy culminated in a recent case named Harding, where Harding, an Aussie who lived in Bahrain for 6 years, had a habit of changing his (rented) apartments in Manama every two years or so. The ATO picked up on this, and claimed that this was an indication of a "merely temporary or transient connection to Bahrain", therefore he retained his connections to Australia, and therefore he should be paying Aussie Tax on his tax free Middle Eastern Salary. 

Incredibly, the ATO took Harding through multiple judgements and appeals all the way to the Australian High Court, which threw the case out at the end of 2019. 

I guess after that the Australian government finally decided to change the law to something more modern, but as a I said, even the proposed new law is one of the harshest tax residency regimes in the world outside of the USA. 

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HOLA444
9 hours ago, mattyboy1973 said:

US already taxes citizens globally, so you'll pay the difference in (federal) tax and whatever you are paying locally, if lower.

Yup. Basically you have to relinquish your US citizenship in order to cease paying US taxes. 

Even this is a difficult and protracted process, and hugely unfair to many people who never asked for their American citizenship in the first place. Back in the sixties and seventies, it was common for either Americans or Canadians to use a hospital to give birth on the other side of the border if the maternity hospitals on their side were packed. So many Canadians were born on the US side of the fence, which meant they were automatically US citizens, a development in which they had no choice and which back then meant almost nothing. 

I even heard of  a French woman who had never been to the US somehow picking up US citizenship through her American parents, who had moved to France. She only found out about it when the US embassy in Paris contacted her about it when her parents died and she had to do some tax work connected to her inheritance. 

But the waiting time for relinquishing US citizenship is long.

I heard that in Ottawa its now more than 15 months before your appointment with the US consul to lose it can be executed. 

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HOLA448
On 11/27/2021 at 11:17 AM, Saving For a Space Ship said:

Not sure this got a mention 

Is this the biggest property scam ever? | 60 Minutes Australia

https://www.youtube.com/watch?v=bZj8luy0KTI

Toward the end of.next year I reckon. Prices have gone to insane levels. As Australia decouples from it's love affair with China (australasia) reality will kick In. Going to be messy.

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HOLA449

The new arabs......

https://www.janes.com/defence-news/news-detail/australia-orders-new-tanks-and-engineering-vehicles

Australia has locked in its purchase of more than 120 tanks and other armoured vehicles from the United States, at a cost of $3.5 billion, as part of a major upgrade of the army’s fleet.

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HOLA4410

https://www.9news.com.au/national/west-australia-bushfires-denmark-bridgetown/67d0513f-9e28-4762-8186-6034939828a9

Multiple bushfire warnings are in place for parts of Western Australia as flames that have already destroyed homes and killed animals ravage tens of thousands of hectares of land.
In the Shire of Serpentine-Jarrahdale, an emergency warning is in place about 30km south of Perth for the area between Anketell Road to the north, Tuart Road to the east, Thomas Road to the south, and Treeby Road to the west
Watch and act warnings are in place more than 100km further south-east for parts of the shires of Narrogin and Wickepin, and Narambeen.
 
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HOLA4411
  • 7 months later...
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HOLA4412

Couple of months old but I don't think this has been mentioned anywhere. NSW are in the process of removing stamp duty and replacing with a LVT:

https://www.abc.net.au/news/2022-06-21/dominic-perrottet-nsw-premier-stamp-duty-budget-reform-2022/101168538

New buyers will have the option of avoiding stamp duty and instead take an annual $400 + 0.3% of the LV instead.

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HOLA4415

Well, after almost 14 years since the inception of this thread, Australia is finally facing its demons.

https://www.smh.com.au/property/news/sydney-s-plunging-property-prices-leave-potential-sellers-spooked-20221101-p5buqo.html

In the meantime, I've bought and sold as required to suit a growing family.

This seems to be a lesson in analysis paralysis and utility vs financial gain when it comes to your primary residence. I'd have been stuck in a very small property for the last decade and a half if I had viewed my home as an investment.

At least with prices coming down the next generation get a look in to buying a home.

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HOLA4416

https://www.theguardian.com/australia-news/2022/nov/20/do-we-just-make-a-tent-city-the-councils-grappling-with-an-influx-of-homeless-australians

‘Do we just make a tent city?’: the councils grappling with an influx of homeless Australians

Some authorities are evicting campers from public land; others are installing temporary facilities. But all say current solutions are not tenable long-term

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HOLA4418

British nurses triple their salaries by moving to Australia and help fuel the biggest two-year population boom in the country's history

https://www.dailymail.co.uk/news/article-11959597/British-nurses-triple-salaries-moving-Australia-help-fuel-biggest-two-year-population-boom.html

Australia's population is booming as Britons are lured by the prospect of tripling their income while being able to enjoy the outdoor lifestyle. 

The country is set to see its biggest-ever immigration surge, with government figures revealing 650,000 migrants are predicted to arrive this financial year and next as Australia entices skilled workers to fill gaps. 

 

Property boom incoming!

 

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HOLA4419
28 minutes ago, PeanutButter said:

British nurses triple their salaries by moving to Australia and help fuel the biggest two-year population boom in the country's history

https://www.dailymail.co.uk/news/article-11959597/British-nurses-triple-salaries-moving-Australia-help-fuel-biggest-two-year-population-boom.html

Australia's population is booming as Britons are lured by the prospect of tripling their income while being able to enjoy the outdoor lifestyle. 

The country is set to see its biggest-ever immigration surge, with government figures revealing 650,000 migrants are predicted to arrive this financial year and next as Australia entices skilled workers to fill gaps. 

 

Property boom incoming!

 

The number of people waiting for hospital treatment with the NHS in England has topped 7 million for the first time in August.

There were other unwelcome records elsewhere, with just 56.9% of patients attending major A&Es in September seen within four hours – a record low.

 

Just 72.9% of patients received their first treatment for cancer within two months after seeing a consultant while one-month waits for radiotherapy also reached a new low at 90.5% of patients against a target of 94%. The service failed to meet seven out of eight of its stated cancer targets.

The number of patients waiting more than a year for treatment grew to 387,257 by the end of August, up from 377,689 the month before, equivalent to one in every 18 patients on the waiting list. Eighteen-month waits fell from the high of 123,969 in September 2021 but still affect 50,888.

https://www.theguardian.com/society/2022/oct/13/record-7-million-people-awaiting-hospital-treatment-says-nhs-england

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HOLA4420
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HOLA4421

Actually Andrew Henderson doesn’t have it quite right. 
 

There is still no citizenship based taxation in Australia.
 

What there now is, as per an ATO ruling issued on June 7th, is clear stipulation that the Australian Taxation Authorities will regulate HOW an Australian citizen will now live overseas. 
 

What an Australian who leaves Australia now has to do is to form a “permanent connection” to one particular country. 
 

If they don’t do that, then the Australian tax authorities are now saying that they will automatically default to be an Australian tax resident, eligible to pay Australian taxes on their foreign income, whatever the source of that income. 
 

This essentially means that Australians will not be able to have multiple residencies over a year. They cannot for example, spend 4 months working in Dubai, (0% income tax) 6 months working in Hong Kong (15% income tax) and then 2 months working in Monaco (0% income tax). Such an Australian, pursuing this kind of lifestyle, will find themselves paying Australian taxes like any Aussie who lives year round in Sydney or Melbourne. 
 

I find this absolutely outrageous, for the simple reason that it discriminates against Australians who live in low tax jurisdictions. 
 

Take an identical scenario where an Australian spends 4 months working in Sweden, 6 months working in France, and 2 months working in the United Kingdom. The ATO has stated clearly that such Australians will not be pursued for tax,as they are already paying mounds of tax to other jurisdictions. 
 

Naah, the crime here is if you arrange your life so that you avoid paying mounds of tax anywhere. That, for Australians escaping Australia, is no longer allowed. ( Unless you buy a house in Dubai, Hong Kong etc, and spend all the tax year there) …

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HOLA4425
38 minutes ago, Blobsy said:

Just listened to this podcast by the excellent Grant Williams re- the Aussie real estate market.

Synopsis...it's fcked!

 

https://podcasts.apple.com/us/podcast/the-grant-williams-podcast-ep-58-matt-barrie-full-episode/id1508585135?i=1000619877925

The immigration figures he talks about are insane.

1300 people a day through net overseas inward migration!

 

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