Call this one a Public Service Post. For Aussies working overseas, the Rudd tax grab in support of free handouts by reviewing Overseas Tax Arrangements send a shiver down many a spine (Stumps Included). However it appears it only applies to "resident rax payers" Below is from the SMARTS group, who say they are happy for the email to be forwarded so I suppose a post counts? Naturally the Stump cannot make any claims to the accuracy of the article but it should help a few sleep better tonight.
"It seems that there is one thing scarier than a A$57 billion Australian Federal Government Deficit.
In the Budget released this week was an announcement that Australians working abroad will now be subject to tax on their foreign income in Australia as a result of changes in Government policy in the Budget.
We have received numerous calls and emails on this so we thought it appropriate to send this special Expat Update to you to clarify the position and keep you informed.
The changes announced in the Budget only affect RESIDENT Taxpayers, that is people living in Australia and commuting for short term employment stints overseas.
For anyone that is genuinely LIVING ABROAD there is no change as you are a NON RESIDENT for Tax Purposes and the old Exempt Income Rules did not apply to you in any case.
If you are unsure if your are living in or out of Australia, it is a simple as where is your “HOME”. If your current “LIFE” (for the next few years roughly) is based out of Australia, then it is highly likely you are Non Resident. If you have doubt please do not hesitate to contact us for clarification.
What the change does mean is that anyone currently living in Australia and enjoying the Tax Exempt status on 90 plus day overseas assignments or on flexible short term overseas assignment, should seriously consider moving abroad after 1st July to become tax Non Resident rather than continuing to commute and be exposed to Australian tax. For those that traveled less than the 90 days there is no change to the previous treatment as they have been taxable in Australia throughout.
Fortunately the Budget did not make any changes to the current Tax benefits of Australian Expatriate life, so all the items covered in my planning book "The Aussie Expat - The Luckiest Person on Earth" remain including the claims on Australian property and the ability to accumulate Tax Credits whilst living abroad."