Since November 2004, Majenda has provided specialist tax and investment services to inbound and outbound Australian expatriates. Initially we provided services to pilots based in Dubai and, over time, have extended our services to expats throughout the Middle East as well as Singapore and Hong Kong.
Whether an Australian is returning to Australia or moving overseas for the first time, there are a range of tax issues to consider. The first issue is usually when to become resident or non resident for tax purposes and what the implications of such a move might be.
Expats moving from an low tax or no tax country to Australia need to be aware that they will be taxed on their worldwide income upon becoming tax resident of Australia. Overseas investments that have previously attracted little or no tax will become subject to tax in Australia. In some cases, the Foreign Investment Fund (FIF) or Controlled Foreign Corporations (CFC) tax provisions may apply and the investor may be taxed at a much higher rate than they have been used to paying in the past.
In contrast, an investor returning to Australia may decide to invest via the Australian superannuation system, which offers a range of tax concessions to investors. Given that there are limitations on contributions and a range of different funds to consider, investors should seek advice before they make major changes to their investment portfolio.0