Uh oh, Kubes...

[Addadude]

Perhaps it's time to look at applying for Singapore citizenship? 


BETTER TARGETING THE INCOME TAX EXEMPTION FOR AUSTRALIANS WORKING OVERSEAS

The Rudd Government today announces important new measures to ensure that workers who earn income overseas do not have an unfair advantage over workers who earn income and pay tax in Australia.

The measures help improve the fairness and integrity of the tax system by better targeting the tax exemption for income earned by Australians earning income overseas.

The measures will also protect Commonwealth revenues needed to support jobs and invest in vital nation-building in the face of the global recession.

The new measures are expected to provide an additional $675 million over the forward estimates.

Currently, Australians working overseas for over 90 consecutive days are eligible for a general exemption which means they do not pay any Australian income tax on their foreign employment income.

This general exemption was provided to ensure that foreign employment income was not double‑taxed, first in the country where the income was earned and then again in Australia.

However, many foreign countries are lower tax jurisdictions which means some Australians who earn income overseas are paying much less tax than if they earned income solely in Australia.   

In addition, workers can use the general exemption to lower their taxable income for the purposes of accessing a range of government benefits.

Under the new measures announced today, the Government will amend the general exemption to provide a better targeted exemption which is only available for income earned:

as an aid or charitable worker employed by a recognised non-government organisation; or
as a government aid worker; or
as a specified government employee (for example, defence and police force personnel deployed overseas).   
Further, income earned by an individual employed on an overseas project approved by the Minister for Trade as being in the national interest will remain exempt, as provided for by existing rules.

To avoid Australians paying double-taxation, a tax offset will be available for any foreign tax paid on their foreign employment income.

Treasury will undertake stakeholder consultations concerning the legislation and administrative arrangements for these changes.

CANBERRA
12 May 2009

[JBA]

Ask your boss for a raise Kubesy!

[Top Aussie.]

This is a brilliant initiative.  Like I said in the past, most Australians are happy to pay taxes to ensure social justice.  Now, with $100 billion of new defence spending.  This will allow Australia to lead in Asia, pushing the Australian way of life to all Asia. 

[LMAOROFL]

This is a brilliant initiative.  Like I said in the past, most Australians are happy to pay taxes to ensure social justice.  Now, with $100 billion of new defence spending.  This will allow Australia to lead in Asia, pushing the Australian way of life to all Asia. 

should read:

Now, with $100 billion of new defence spending.  This will allow Australia to recruit and train an armed forces consisting of actual human beings, in working machines, with real guns.  Reports suggest that the existing marsupial armed forces is growing increasingly resentful of this new spending initative.  Brigadier General Kangaroo was recently quoted as saying 'Except for the large portions of the country periodically burned to the ground by acts of god and forces of nature, we have done an exemplary job defending the country.  Why this government thinks we are now so obsolete is beyond me...`

[Some company]

So Australia will now join the US, North Korea and Vietnam by imposing taxation on WW income.

Some company indeed...

[Kubes.SG]

What an effing ridiculous change.  Short sighted and impossible to police.  Looks like a win for the accountants and lawyers.

If they implement this the reasonable approach would be not look at difference between only income taxes but the entire tax base of the expat's country vs Australia.  For example, the indirect taxes here for critical items in SG are much higher than AU -> cars, petrol, maid, tobacco, alcohol, plus GST is charged on just about everything.

This will be interesting.   Will need to toss a coin and decide if we take out SG citizenship and move into an HDB flat;  or move back the AU.  This makes SG (and a lot of other countries) a hell of a lot less attractive for Aussies.

[Sebuk]

Go home then. No one is forcing you to stay and I, for one, will be glad to see you leave.

[Au$$ie]

This bill will never get off the ground. Socialists aren't getting their dirty mits on my hard earned, but best practice my Singlish just in case leh.

[chaos theory]

This sucks but at least the living away from home allowance LAFM should be claimable at the highest rate which I think is $360 per day so the first $131000 you earn will be tax free from Oz.

The nett effect is every $100k you earn over 131k will incur tax debt of 23K pa (assumming you pay Sing about 15%) as its equalised to the top marginal rate in OZ of 38%

My advice is we all start drinking heavily

[JBA]

It would appear Kubes has been doing that for a long time

[Time to head home]

Time for aussies to go back home and slog for all of its lazy countrymen with beer bellies. Well at least they will have enough welfare that will pay for their yearly trips to Phuket / Bali.

[Kubes.SG]

CT:  Let's hope that the LAFH allowance applies as minimum. 

I just can't see the AU Govt offering me all the services in SG that the high AU income taxes pay for.  Are they going to setup a public school in Singapore so I don't have to pay >$22k per kid?  Pay for most healthcare costs here?  Pay any unemployment benefits if required?  Plus offset the cost of my housing vs the AU median?  And pay me difference between the additional tax I pay for a car (and fuel) in SG, vs the AU rates.  To your LAFH, I presume I should be able to claim deductions for all the expenses incurred for my employment.

What happens if I go and work in a higher taxed country than AU, will these idiots reimburse me to cover the higher tax I paid, above what would be due in AU?

Unfortunately the AU tax rates are higher than what you have used.  Believe the 2nd highest bracket is 40% for income AU$80k-$180k and then 45% above $180K.   So most people would be looking at losing an additional 30% above about SG$200k income.

[Addadude]

Okay - perhaps there is no need to panic just yet... I got this from another (insert F word):

"I got this from Advance last night so it all sounds ok for now.

As you are aware from our previous announcement, the Treasurer, the Hon Wayne Swan, has released exposure draft legislation to amend the current general income tax exemption for income earned in overseas employment. The exposure draft legislation implements announced changes to better target the exemption (provided by section 23AG of the Income Tax Assessment Act 1936).

Please note that the draft legislation does not affect those Australians considered non-residents of Australia. The proposed new legislation only affects resident taxpayers of Australia working abroad.

If you are unsure of your residency status please contact the Australian Taxation Office (www.ato.gov.au)."

[JBA]

It will be good to get rid of all the Aussies and replace them with British gentlemen. Another reason for Singapore properties to increase. Less louts here!

[Top Aussie.]

I hope Australia will inspire the EU and the UK to adopt similar laws.