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Junior Member
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Hello,

I am currently living in the US and I have an opportunity to temporarily relocate to Australia for somewhere between 9-18 months (most likely ~12 months) while we set up a remote office down under. I am thoroughly confused about the double taxation agreement between the United States & Australia.

My company has said that they would sponsor me on the "Temporary Business (Long Stay) - Standard Business Sponsorship (Subclass 457)" visa, and that my wife would be able to work on this visa while we are down under. I've also been promised temporary housing in the form of a fully furnished apartment that will be direct billed to the company. I have no plans on moving permanently or buying property in Australia.

I'm hoping someone can answer the following questions for me, or direct me to a reputable tax professional if that's who I really need to talk to:

1. If we stay over the 183 day limit in the Australian tax year, do I pay US income taxes, AU income taxes or both?

2. Does the answer to #1 change if I'm paid 100% in USD and I only transfer money as needed from a US bank account into an AU account ? The reason I ask this is because my company wants to look at this temporary move as an extended business trip if possible. I anticipate transferring very little money into Australia because housing will be billed directly to the company, and I can use my US credit cards and expense items as necessary.

3. If I have to pay AU taxes, is there a way for me to pay the resident tax-rate (so I don't pay the ultra-high 29% on the first $25k, etc.)?

4. If I were to try and stay less than 183 days within the AU tax year, and if I take two weeks vacation while down under, and say I jump over to New Zealand for those two weeks, do I get to deduct 14 days from my allowed 182 days before paying taxes?

5. I've heard the term expat, and have heard that it can create a favorable tax scenario for me, but I can't seem to find any information on it at all. Does anyone know anything about ex-patriating from the US to AU and what the implications are while I'm gone and when I return to the US ?

Many thanks in advance.
 
Posts: 1 | Registered: 17 April 2008Reply With QuoteEdit or Delete MessageReport This Post
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