30 Days Left For Australian Expats to Lodge Your Tax Return – For the majority of Australians, the end of the financial year marks a crucial time.
It signifies the culmination of a year’s worth of earning, spending, and hopefully, saving. And with just 30 days left to lodge your tax return, the countdown has officially begun.
For Australian expats, however, tax season can bring about its own unique set of challenges. Navigating the tax laws of two countries, determining residency for tax purposes, and understanding what income is taxable can be a daunting task.
If you’re an Australian expat and feeling the pressure, take a deep breath and read on for a few steps to ensure you’re prepared for the upcoming deadline.
- Determine Your Tax Residency Status
The Australian Taxation Office (ATO) categorizes Australians living overseas into two main categories: Australian resident for tax purposes and foreign resident for tax purposes.
Your tax residency status will determine how you’re taxed.
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- If you’re deemed an Australian resident for tax purposes, you’ll be taxed on your worldwide income.
- If you’re a foreign resident for tax purposes, you’ll only be taxed on your Australian-sourced income.
Review the criteria set by the ATO and determine which category you fall into. This will guide how you proceed with your tax return.
And if you need assistance in determining your tax residency get in touch. We help Australian expats all over the globe work out what is appropriate for them.
- Gather Documentation
Regardless of your residency status, ensure that you have all the necessary documentation ready:
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- Payslips and income statements.
- Records of Australian-sourced income.
- Documentation of any foreign income, even if you believe it isn’t taxable in Australia.
- Records of any taxes paid overseas, as you may be eligible for a foreign income tax offset.
- Receipts for deductible expenses, both in Australia and abroad.
- Check for Double Taxation
Australia has double taxation agreements with many countries, which are designed to prevent taxpayers from being taxed twice on the same income.
If you’ve paid tax in another country, you might be eligible for an offset in Australia. Familiarise yourself with these agreements, especially if they pertain to the country where you’re currently residing.
- Consider Using a Tax Agent
Given the complexities of international tax laws and the potential for missing out on significant deductions or credits, many expats choose to employ the services of a tax agent.
They can provide expert advice tailored to your individual circumstances and ensure that your tax return is lodged correctly.
Remember, if you choose to use a tax agent registered with the Tax Practitioners Board and engage them before the October 31 deadline, you might be eligible for an extended deadline to lodge your return.
- Stay Updated on Changes
Tax laws, both domestic and international, are continually evolving. It’s essential to stay updated on any changes to ensure you remain compliant and make the most of any new provisions or deductions available to you.
Living overseas can offer incredible experiences, cultural insights, and professional growth.
However, it does come with its own set of administrative tasks, especially when tax time rolls around. By staying organized, informed, and seeking professional advice when necessary, you can navigate this tax season with confidence.
To all Australian expats, remember: the clock is ticking, but with the right preparation, you’ve got this!
And if you don’t, reach out to us for a complimentary call and we can talk you through the process and how Atlas can make this difficult time easier.