Frequently Asked Questions by Expats
When it comes to maximising your financial opportunities overseas, learning about Australian expat tax and financial advice topics is important.
Whether you’re about to move overseas, currently living the expat life, or preparing to return to Australia, you’re likely to have many questions.
That’s why we’ve created the Australian Expat Frequently Asked Questions section.
Here, we address some of the most common questions about Australian expat tax and financial matters.
If you don’t find the answer you’re looking for, please visit our contact page to submit your question.
This is a common question and it will depend on two topics –
- your residency tax status; and
- the source of the income.
If you are classified as a resident for tax purposes then even if you live and earn an income overseas you may need to pay tax on this income, even if you have already paid tax on it overseas. Learn more about Double Taxation Agreements.
If you are classified as a non-resident for tax purposes then generally speaking you are not required to pay income tax on any income whilst working overseas.
If the source of your income is in Australia then the type of income you have earned (e.g. from employment, investment etc) will dictate whether or not you are required to pay tax to the ATO.
As everyone’s circumstances are different we recommend you obtain professional advice to determine what is applicable to you.
The type of superannuation that you hold back in Australia will determine whether or not you can contribute to your super fund.
Excluding Self Managed Super Funds (learn more about contributing to a SMSF as a Expat) then generally speaking you can contribute to a Australian superannuation account however you will need to check with your provider about whether their internal rules allow it.
Australian expats may also 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 and make a contribution into their superannuation account as a concessional contribution.
A non-resident Australian expat with Australian-sourced income such as rental property income may find it beneficial to claim a tax deduction on personal super contributions.
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.
While many professionals in Australia offer tax and financial advice, when it comes to the specialized needs of Australian expats, one size does not fit all.
The reason being that not only is the tax legislation in Australia changing rapidly but so too does the regulations overseas.
When providing Australian expat tax and financial advice not only do you have to consider the changing landscape in Australia but also how that works with the country that you are resident in.
We have often seen cases where tax or financial advisers in Australia offer recommendations without considering how those decisions will impact you in the country where you are domiciled.
Cross border financial planning takes into account both aspects – the country that you are a citizen of, as well as the country that you are resident in.
There are a number of ways you can become a client of the Atlas Wealth Group.
In order to correctly understand your financial position, and the requirements that you have, we recommend an initial meeting to discuss your personal circumstances.
You can;
- Contact either of our offices in Australia or Dubai to organise a meeting in person in one of our offices, or
- Send through an enquiry to organise a meeting to be conducted over Skype, Zoom or any other digital video platform.
With clients in over 28 countries, we are experienced in providing Australian expat tax and financial advice over many different mediums.
Distance is no impediment to receiving specialised expat financial advice, which is customised to your citizenship and country of domicile.
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 oversight.
Australian advisers not only understand the unique needs of expatriates but are also well-versed in the regulatory challenges faced by Australian expats.
Quite often offshore advisory firms manage clients of many different nationalities, so their advice is directed at expats in general, and not how it affects you as an Australian expatriate in particular.
Due to regulatory requirements, our advisers are committed to ongoing education, ensuring their knowledge and skills remain at the highest professional standard.
We have many clients who come back to Australia to either continue working or to retire.
They continue to rely on the services of Atlas Wealth Group, because they need expert financial advice tailored to their needs.
With years of experience in providing financial advice, we are uniquely positioned to offer ongoing guidance, as no one understands your situation better than we do.
Atlas Wealth Group 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 a peace of mind knowing that your account is being operated under the jurisdiction of the Australian Securities & Investment Commission (ASIC).
Our fees
When providing specialised services like Australian expat tax and financial advice, we prioritise openness and transparency regarding any fees that may apply.
We believe our services offer significant value, and the remuneration we receive is a fair reflection of our expertise and skills.
We are committed to being clear about any benefits or payments we receive, as well as the costs you may incur for using our services.
The cost of providing financial products or services will depend on the nature and complexity of the advice, products, and/or services offered.
There maybe a small initial charge for the call depending on the nature of your enquiry. If there is a charge this will be confirmed with you in writing beforehand.
The purpose of the discovery call is to understand your financial situation and to determine whether Atlas Wealth Group can be of assistance.
Please note that should further calls be required then we may need to charge for our time, however we will confirm this with you in writing beforehand.
Atlas Wealth Group is committed to identifying and managing any potential conflicts of interest between us as advisers and you as our client.
An example of how we manage this is that all of our financial planners are paid a salary, and the advice provided to you does not influence what they earn as income on a monthly basis.
Atlas Wealth Management abides by the Code of Ethics standards that were introduced in Australia on the 1st of January 2020.
As part of this framework Atlas Wealth Group must always act to realise and promote the values of:
- Trustworthiness
- Competence
- Honesty
- Fairness
- Diligence
NO! We are strongly against remunerating our financial planners by way of a commission.
Atlas Wealth Group is a “fee-only” advisory firm and the only compensation we receive is from our clients.
We receive no commissions on any product we recommend and the only reason we may recommend a particular product is because it is in your best interests, not ours.
The Australian expats that we work with gain piece of mind knowing that the Atlas Wealth Group financial planner they are working with is paid a salary, which is not dictated by recommended products or sales targets.
Our fee-only structure provides transparency and supports our sole objective – to help each client achieve their individual goals.
When an Australian expat engages Atlas Wealth Group to obtain financial advice there are two stages in the process with the respective fees applying to both stages.
The first stage is the Planning Phase.
By law we must prepare for you what’s called a Statement of Advice (Financial plan in layman’s terms).
Essentially this is a 30 to 70 page report that is a review of your current financial circumstances, identifying your goals and objectives. Our strategy helps you achieve those goals.
The second phase is the Ongoing Advice Phase.
Once a client has received their Statement of Advice and has approved the strategy, they then may engage Atlas Wealth Group to execute the recommendations and provide ongoing advice.
When you request that Atlas Wealth Group provide you with a Statement of Advice, your financial planner will provide you with a quote to prepare this for you.
The cost to prepare a Statement of Advice document ranges from USD$2,100 up to USD$10,500. This fee will vary according to the complexity and scope of the financial advice that is being requested.
For example, at the lower end of the price range, services may include a simple superannuation review and consolidation or an investment portfolio recommendation. At the higher end, services could involve a comprehensive review of superannuation, investment accounts, and a property portfolio, aimed at optimising cash flows, gearing levels, and tax residency.
The Statement of Advice preparation fee is a one off charge and it is calculated on a cost recovery basis, which is based on the time that it will take us to prepare your financial plan.
It is important to note that by requesting a Statement of Advice, you are not committing to an ongoing advice package and you are only agreeing to the one time Statement of Advice preparation fee.
Unlike most financial planning firms, we specialise in cross-border financial advice, and all of our services are managed in-house. This ensures that we are fully accountable for every recommendation we make.
In addition to offering research and recommendations on the latest legislative changes relevant to Australian expats, we also provide our award-winning portfolio management service. This service is supported by our in-house investment committee, which monitors your portfolio on a daily basis.
Our ongoing advice fees are centered around our two core services to Australian expats.
- Financial Planning Fee – AUD$137.50 per advised person per month.
- Asset Management Fee – Our award winning asset management service fee is a maximum of 1% and tiers down to 0.50% based on the size of the account.
