Helllp.

I am considering returning to Australia soon, and there is much I need to learn about how my job will be treated for Australian tax purposes.

I’m currently living in the UK working as a seafarer doing roughly 4 weeks on/off (>183 days per year) at various international locations. In the UK I am currently able to claim back 100% taxes paid, under the Seafarers Deduction scheme.

I work for a UK based company who pays me a day rate on a PAYE basis, direct to my UK bank account.

When I decide to return to Australia , the plan is to buy a property there at some stage. That may or may not cause problems related to this matter, this is something else I need to find out.

I am a dual British/Australian citizen, and have been living here in the UK permanently now for at least 8 years.

If I move back to Australia in, say, a year from now, is there any way I can legally not pay tax to the ATO, if I continue to work for a UK company whilst based in Australia? The way I understand it, there is a foreign source income arrangement in Australia which allows me to be exempt from any foreign sourced income, however I must pay tax on any Australian sourced income. Also, under the INCOME TAX ASSESSMENT ACT 1936 - SECT 23AG it states “Where a resident, being a natural person, has been engaged in foreign service for a continuous period of not less than 91 days, any foreign earnings derived by the person from that foreign service is exempt from tax”. Now, because I am actually continuously employed by a UK based employer for more than 91 days even though I spend more than 183 days per year offshore for 4 week durations, could this mean that I could be exempt from tax? Or do I have to physically be overseas for more than 91 continuous days to be exempt? Also, what defines ‘foreign service’?

I hope someone can provide me with some answers to this difficult and complex situation, as I could potentially be losing out on about £15-20k per year by moving!

Cheers