My wife and I are in Oz on a 410 visa renewable after the first 4 years on the 16th April 08. We have a endowment policy due to mature on the 23.11.2007. I understand that we will be exempt from the FIF tax provisions however will be we subject to any other form of taxation in Oz (we are both holders of Australian tax file numbers)
This area is a complete mystery to me and the more I read the more confused I get. Help pleasemhbrown@bigpond.net.au

If you are a resident for Australian Tax purposes and you have a UK endowment policy then you are still subject to the FIF rules as they contain a section on Foreign Life Policies (FLPs).

Check out the foreign investments fund guide 2004/5 at
http://www.ato.gov.au/individuals/content.asp?doc=/content/57251.htm

Particularly section 5 and worksheet 5. If your foreign investment assets including your insurance policy is less than $ 50000 then forget the whole thing.

I'm no expert on this but hope this helps.

I have been doing some more research on FIFs and it appears that there is a general exemption from the FIF rules for all residents in Australia on a 4 year temporary visa and who have not lived in Australia in the past 10 years. I am not sure if this applies to your type of visa as it appears to be renewable but I am sure that Alan should be able to confirm one way or the other.

Even if the FIF rules do not apply you will be subject to Australian tax on all income arising in Australia.

Paddy, thanks for the information, its been very helpful. Regards. Mick Brown