We understand that when it comes to learning and improving your level of financial literacy as a Australian expat. Whether you are just about to move overseas, living the expat life, or about to return to Australia, there are always a lot of questions – which is why we have setup the Australian Expat Frequently Asked Question section.
Here we outline some of the most commonly asked questions about obtaining Australian expat financial advice. If the answers below doesn’t cover your question then please head over to the contact us page to submit your question.
There are a number of ways you can become a client of Atlas Wealth Management. You can either:
- Contact our office to find out when an adviser will be available in your region to meet in person; or
- A Meeting can be conducted over Skype; or
- We can arrange to meet when you’re next in Australia. You are welcome to visit our office or we are more than happy to come to you.
In order to correctly understand your financial position and the requirements you have, we recommend a initial meeting to discuss your personal circumstances.
Australian licensed advisers are regulated and monitored by the Australian Securities & Investments Commission (ASIC) unlike many offshore advisers who operate sometimes with little to no regulations.
Australian advisers not only understand your needs as an Australian expatriate but understand the relevant regulatory issues that are faced by Australian expats. Quite often offshore advisory firms manage clients of many different nationalities, so their advice is directed at expats in general, not how it affects you as an Australian expatriate in particular.
Due to the regulations, our advisers must undertake continuing education that ensures their professional knowledge and skills are always at the highest standing.
Atlas Wealth Management only works with Australia’s leading financial services companies. These companies pride themselves on maintaining their integrity and are subject to some of the world’s toughest financial regulations.
By utilising our services, you will always have the peace of mind knowing that your account is being operated under the jurisdiction of the Australian Securities & Investment Commission (ASIC).
We have many clients who come back to Australia to either continue working or to retire.
They still utilise the services of Atlas Wealth Management because they still require someone to provide them with financial advice.
As we have provided financial advice over a number of years, we are usually in the best position to provide ongoing advice because no one understands your position better than we do.
Australian expats may be eligible to claim personal super contributions as a tax deduction if they are considered an eligible person as defined in s290-160 of ITAA97. One of the key requirements is that the member earns less than 10%# of their income from eligible employment in the year the contribution is made.
For Australian expats, income attributable to employment outside Australia is non-assessable and not counted in this ‘10% test’. As such, a non-resident with Australian-sourced income such as rental property income may find it beneficial to claim a tax deduction on personal super contributions.
Note: An Australian expat’s income from interest, dividends and royalties is subject to withholding tax, is excluded from assessable income and cannot be offset by claiming a tax deduction.
# Legislation has now passed to abolish the 10% employment income test from 1 July 2017.
If an Australian expat satisfies a condition of release, they can commence a super pension and the tax treatment of the income payments will depend on whether or not they are a resident of a country that has a Double Tax Agreement (DTA) with Australia.
DTAs attempt to prevent double taxation by allocating taxing rights over income classes covered under the agreement. If both the country of residence and Australia (the source country) tax an amount of income, the DTA requires the country of residence to grant a credit against its tax for the tax paid in Australia.
If a DTA does not apply, then the pension income is included as assessable income in Australia if the member is under the age of 60 or comes from an untaxed source. The member may also be entitled to the 15% tax offset (or 10% tax offset for income payments from an untaxed source).
If there is a DTA, then the pension income will generally only be taxable in the country of residence and no PAYG tax is withheld in Australia.
There is a difference in the DTA agreement with New Zealand whereby pensions paid from Australia to a tax resident of New Zealand who is over age 60 will have the tax-free status of the pension recognised and no tax will be levied in New Zealand. This is the only country to state that if the pension is exempt in the home country it will be exempt in the other.