Blog Post
The question of residency is extremely important if you are going overseas. This is because the Australian tax system is based on residency. If you are going overseas on a permanent basis and cease to become a resident of Australia you are only taxed on Australian sourced income. Any income earned overseas is disregarded. In a recent case, the taxpayer was a mechanical engineer who went overseas with his wife and was away for the 2006/07 and 2007/08 income years. He had sold his Australian property and worked in various countries, including Oman, United Arab Emirates, France, Korea and the…