Question:
Non-resident despite knowing of eventual return to Australia
Answer:
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
The Tribunal has found against the Tax Office which contended an engineering contractor was an Australian tax resident between 1997 and 2002 despite working in the Czech Republic, Turkey, South Africa, USA, Germany, Thailand and China and making his home in the Philippines.
He left Australia in 1997 and did not include his foreign income in his Australian income tax returns for those years because he believed he had become a non-resident.
The Tribunal said he was not a resident because:
+ He started selling is home in Australia in 1997 and was eventually successful in doing so in 1999;
+ He spent 468 days in Australia between July 1998 and June 2002 (only);
+ He had no business or employment relations within Australia during his absence;
+ His stays at his parents’ house in Australia did not constitute a home in Australia for the purposes of residency;
+ His domicile/permanent place of abode was in the Philippines where he had a domestic relationship and had established a home.
AAT Case [2011] AATA 539, Re Mynott and FCT, WTB 1324
