Question

if a worker is from Ebngland but he work at Australia ,he has a house in England to be rent ,but the wage he receive in Australia he is transfer to England to bulid house ,so the revenue he receive from England need to be count in Australian taxation

Answer 1

An Individual's immigration status will be one of the key determinants of tax residency.Most overseas worker will enter and work in the country via a temporary worker visa such as the newly introduced Temporary skill shortage visa(TSS) or its Predecessor the Temporary Work(skilled) visa.

If under the terms of the visa the worker from England can only remain and work for a finite period,he is typically deemed to be temporary residents for Australian Tax purposes.Changing immigration status such as applying for a permanent residency visa,will have implications for tax residency.

CASE 1: If the worker from England is a Temporary Resident In Australia

Temporary Tax Residents only need to declare income derived within Australia including(but not limited to):

• Salary and wages from employment in Australia.
• Business income using an Australian Business Number(ABN).
• Rent from investment properties in Australia.
• Interest from investment properties in Australia.
• Dividends from share held within Australia.
• Foreign Employment Income earned during temporary residency.

Any overseas assets held by temporary residents will not normally be considered.

CASE 2:If the worker from England is a permanent resident in Australia:

• he must declare all income earned anywhere in the world on his tax return
• he is entitled to tax-free threshold-this means there is no tax on his income to a certain limit.
• he will generally pay the medicare levy.

But the worker from England must include rental income from overseas properties in his Australian tax return.

This income is the full amount of rent and associated payments the worker receive or become entitled to when he rent out his property in England.

His rental income includes any assessable amounts the worker receive relating to limited resource debt arrangements involving his rental property.

If the worker has paid tax in England on his revenue from home in England,he can claim a foreign income tax offset in his Australian tax return.

UK/AUSTRALIA DOUBLE TAXATION CONVENTION:

Effective in united kingdom from 1st April 2004 for corporation tax,from 6 April 2004 for income tax(other than taxes withheld at source) and capital gains tax and from 1st july 2004 from taxes withheld at source.

Effective in Australia from 1st April 2004 for fringe benefits tax and from 1 july 2004 for withholding tax on income derived by non-residents and other Australian tax on income or gains.

So if the worker from England has already paid taxes on his revenue from house property in England than according to double taxation treaty between Australia and UK, he is able to claim a tax offset on the tax already paid in England.