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Expatriates: Critical Tax & Super Issues

Published on 13 Aug 2009 | Took place at The Novotel Hotel, Brisbane, QLD

Expatriates, both inbound and outbound and their employers and advisers, face unique challenges and issues in relation to the operation of the Australian Taxation System. In addition, the recent budget changes have added to the complexity that needs to be addressed and managed. In particular, the changes to section 23AG are now law and apply from 1 July 2009 meaning there is a fundamental change to the tax landscape for Australian’s working overseas and the planning for structuring those assignments needs to happen now.

In addition to dealing with the changes to section 23AG, this event focused on some of the more common issues encountered by advisers when dealing with Australians who are living or working overseas, or for foreign nationals who are living or working in Australia. These include dealing with transfers of offshore superannuation and pension balances, understanding and applying double tax agreements and dealing with Australians who have participated in offshore employee share plans.

This event was aimed at accountants, lawyers and financial planners who advise individuals that are working or living overseas or have come to Australia to work, live or retire. This event was also aimed at advisors and employers that send staff offshore or that source staff for work in Australia from offshore.

Get a 20% discount when you buy all the items from this event.

Individual sessions

Expatriates: Section 23AG exemption

Author(s):  Alana HAIDUK,  Kristy WHITNELL,  Belinda WRIGHT,  Justin LONG,  Sally-Anne Horn

The government in their May budget announced the removal of this much utilised section of the 1936 Act which allowed for employment income of outbound expatriates to be exempt from Australian tax. This paper explores these amendments and the impact they will have on employees and employers.

The taxation impact on employers include PAYG, pay-roll tax and superannuation obligations and increased FBT costs. Given the changes employers will also face a loss of international competitiveness, increased assignment costs and reduced ability to attract employees on overseas assignments.

Employees will face greater issues such as double tax and the associated cashflow concerns. Accordingly, this paper also explores the alternatives available including the use of foreign income tax offsets and the use of double tax agreements.

Materials from this session:

Overseas superannuation and pension investments: The most tax effective means of accessing these funds while in Australia

Author(s):  Alana HAIDUK,  Justin BATTICCIOTTO

This paper covers:

  • income tax on withdrawal
  • foreign social security
  • foreign pension payments
  • tax on foreign investment
  • temporary residents
  • how is a transfer of foreign superannuation taxed?
  • what about the FIF rules?
  • permanent residents
  • foreign pension contributions
  • taxation of a foreign superannuation fund.
Materials from this session:

Double tax agreements

Author(s):  Natalie FRAME Double tax agreements are an important mechanism for assigning taxing rights between two taxing jurisdictions or eliminating issues relating to the double taxing of income. However, due to a lack of understanding of their operation, many advisors may be incorrectly or under utilising these important agreements. This paper explores the use of double tax agreements including "how to" actually read them and "when to" use the agreements for clients where more than one jurisdiction is involved in the taxation of their income. In particular, the more relevant provisions such as the tie breaker tests and the 183 day exemption for employment income as well as those dealing with the limitation of or exemption from tax on certain types of income is covered.

Materials from this session:

Employee share schemes

Author(s):  Shannon JAMES

This paper covers:

  • overview of provisions for shares/rights granted prior to 1 July 2009
  • overview of proposed provisions for shares/rights granted after 1 July 2009
  • expatriate issues
  • practical considerations.
Materials from this session: