Tax in Australia

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UK and Australian Taxation FAQs

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Am I taxed on monies I bring into Australia at the time I move to Australia?
Generally not. However, should you leave funds overseas waiting for a better rate of exchange, the movement in the rates from the date of residency to their actual transfer may be assessable/deductible in Australia.

Special rules apply to certain types of payments. For example, an income distribution from a UK trust after you arrive in Australia (become an Australian tax resident) could be subject to Australian tax.

What happens if I leave property in the UK?
Firstly you will need to obtain a current market value at the date of your arrival in Australia. This will be the cost base of the asset for Australian tax purposes.

What happens if I decide to rent out the property?
You will need to complete a UK Tax Return and report the rental income received less any expenses for the tax period 6 April to following 5 April, and pay your UK taxes accordingly.

In addition, as an Australian tax resident you will need to report the rental income received less any expenses for the financial year 1 July to following 30 June and pay your Australian taxes less any UK taxes paid.

Do I pay tax in Australia on my UK Income?
Yes, as an Australian tax resident you are subject to tax on your worldwide income & gains. (See next two questions regarding temporary residents who are generally exempt from tax on foreign income & gains)

Does my visa have any affect on my tax position?
The new temporary resident tax measures were introduced with effect from 1 July 2006. Individuals who qualify as 'temporary residents' will be exempt from Australian tax on certain foreign source income or capital gains.

So who are temporary residents?
A temporary resident is a person who holds a temporary visa. A temporary visa is one that enables a person to remain in Australia during a specified period, or until a specified event occurs, or while the holder has a special status. A person will not be a temporary resident if they are residents under the separate test laid down in the Social Security Act and their spouse holds a permanent visa. In effect, this means that they cannot be an Australian-resident citizen, permanent resident, or person who holds a protected special category visa.

Do I pay tax in Australia on my income in the UK, if I don't bring it to Australia?
Yes, the fact you choose not to bring the income into Australia has no affect on your Australian assessable income for tax purposes.

In the year I leave the UK am I entitled to a tax refund?
Depending on the date of your departure most individuals are entitled to a refund of UK tax (assuming you have paid tax throughout the year). A refund arises because you are entitled to a full year's worth of personal allowances, even though you have only been resident in the UK for a part year.

How do I claim a tax refund?
Complete a form "P85 Leaving the UK" and send this to the UK Inland Revenue along with your P45 from your last employer.

Is there anyone in Australia who can assist me with a UK tax return?
Yes, MS Haines Norton Perth can assist you with the preparation and submission of your UK Tax Return.

Is there anyone in Australia who understands the UK & Australian tax system?
Yes, MS Haines Norton Perth can advise you on your UK & Australian Taxation matters.

Does Australia have death taxes?
No, there are no death duties in Australia. However, as a UK domiciled individual you may still be caught by Inheritance Tax in the UK on your worldwide sited assets.

Am I entitled to a British State Pension?
To be entitled to a state pension you are required to have worked and paid 11 years National Insurance contributions for men born before 6 April 1945, 10 years for women born before 5 April 1950. Both men and women born after these dates only need to have paid 1 year's contributions to be entitled to 1/30 of the maximum UK State pension.

How much am I entitled to?
You can apply for a state retirement pension forecast which will advise you of what percentage of the state pension you are entitled to on reaching retirement age. Go to www.gov.uk for an application form.

Can I make top up national insurance contributions?
Yes, if you are not eligible for a full state pension you may consider paying additional contributions to top up your pension entitlements. You may be able to top up by paying Class 2 or Class 3 national insurance rates.

How are Jersey or Channel Island companies & trust treated?
This is a very complex question but in general terms, nothing is outside the scope of Australian tax and professional advice needs to be sought.

For further professional advice, please contact us at:
CBD Office
Level 3, 12 St Georges Terrace
Perth, WA 6000
T: +61 (0)8 9225 5355
perth@moorestephens.com.au:
Osborne Park Office (previously UHY Haines Norton)
Unit 16 Lakeside Corporate,
24 Parkland Road
Osborne Park, WA 6017
T:+61 (0)8 9444 3400
perth-osbornepark@moorestephens.com.au