Thank you, Mike. I have been waiting for this video for months. Great Video. I recently spoke to a financial advisor that works with a lot of Australian expats. A lot of high-net-worth Australians are investing through a private placement life insurance/private unit-linked insurance in Ireland or the Isle of Man. The way how the ATO treats it is that when the policy is above 10 years, you can basically take the gains/ money out tax-free. I want to know your opinion on these.
Great question I'm going to do a separate video on private placement life insurance. There's unfortunately a bunch of things about that the sales people don't tell you in this case but I'll save that for the video.
Excellent thanks for covering Aust.I am not surprised it's complicated. All our govt policy is complicated. I've read about Americans complaining about the IRS and been fascinated by the level of fear and wondered how it compares to the ATO. Now I know. I had no idea there is an exit tax. I've thought that as a wage/salary earner I'd be better off in zero tax state in the USA. Cheaper cost of living there
Yeah pros and cons I wouldn't really want to deal with either. Australia has a ton of rules and they are very strict though I find there's less exceptions etc, which apply in the US, which makes it super complicated. The US laws are in my view mostly very poorly written they definitely don't value simplicity.
The Australian citizen goes to prison for avoiding tax while the international corporation gets grants and subsidised rewards for avoiding tax. Good Country
Hi - Mike and team at Offshore Citizen. Thanks for the video - very informative and extremely accurate. It's also worth noting that if the proposed Draconian residency rules are passed (it's looking likely). Ceasing your Australian tax residency will be a nuisance. To do so, you must have spent less than 45 days in Australia in the previous three tax years. With the lockdowns in Australia at the moment and the impossibility to depart Australia, this is impossible! A lot of people will be deemed to be an Australian tax residents for a long time by this. I appreciate the best way to be deemed a non-resident of Australia is to become a resident of a country with a tax treaty with Australia. Any of these "friendlier" than the others with taxes? Its not such a bad list to choose from.
@@OffshoreCitizen Thanks. I have! It mainly discusses examples from the ATO in relation to the current residency rules. It does not describe how one can cease Australian tax residency by becoming a tax resident in a tax treaty country or some of those tax treaty countries that have friendlier tax regimes. If you have any videos/info on that, I would be very interested. Thanks.
You search some more Aggresiv Tax Collectors? try Germany I think this are the most aggresiv. In German and I have friends where after 5+ years the Tax authoritys asked for paying taxes and they had to prove exactly where they have been the past years.
Yeah Germany, Denmark, Sweden and a couple others are terrible. The German tax authorities are also a good example of being assholes, which is super sad to see. I could tell you some terrible stories about how they treated people basically assuming guilt going in.
@@coopsnz1 we have a lot of hidden taxes. You cannot just look at the official tax rates. Just to say you something: the basic Australian have a better live and can buy more then the basic German because of all the hidden taxes etc
Thanks! Some of the overseas options I would be interested in don't have tax treaties with Australia, and I wonder to deal with that, even if I did become tax resident in my preferred location.
I am an Australian citizen planning to move to Paraguay in early August. Now I am concerned because I have to juggle the old way of leaving (basically closing down all you bank accounts etc) and the new way of leaving (spending less the 45 days and waiting it out). However based on the new rules it appears you can be a tax resident of nowhere if you spend less than 45 days a year in Australia and have done so for the last 2 years. Here is the specific rule. "If you have been an Australian tax resident for more than three years, then in order to cease Australian tax residency, you need to spend less than 45 days in Australia in the current year, and the previous two years. If yes, you then change residency from the beginning of the current financial year (noting that the previous two years will be resident years, even though you spent less than 45 days each year). "
It doesn't make sense, it says need to spend less than 45 days in the two previous years AND even if you do, you're still a resident for tax. What rubbish. Who of sane mind is going to tell them if this is passed? Not me.
Not law. Still has to go through all the usual parliament crap. Might not even get passed in it's current from, especially with virus situation at the moment.
Don't even think about being a professional in Australia. Engineers and IT staff in particular get screwed. The guy painting your house gets paid more than you do...
Well said. Completely agree. Had one of the best time of my life during my college/Uni days in Melbourne. Their minimum wage is insanely high that's why the working class is content with their life. They have this thing called the tall poppy syndrome where they basically dislike people with success/wealth.
100% correct. Don't even think about being a professional in Australia. Engineers in particular get screwed. The guy painting your house gets paid more than you do...
Please do New Zealand. We have had new Trust laws come in, higher taxes implemented, can't claim interest on investment properties any more etc. I'm thinking of leaving for another country (worried about exit tax on assets like crypto), but would like to know if there is an option in NZ to minimize or defer tax, especially Crypto assets as 39% tax for what we get is pretty crap really.
Great comment Bradbury! I moved to Panama from NZ/Australia to take advantage of the tax conditions here. There are alot of tests in each Australia and New Zealand to become a non tax resident. Chur Bro.
Currently looking into setting up a discretionary trust + business model based on my talks with various crypto tax accountants, but still unsure how to proceed. I’m glad I saw this video because it’s makes me doubt whether I should incorporate on Oz as my end goal is to get out of here and apply for a golden visa at a more friendly country. Your absolutely right that rules here are draconian. I’ll be reaching out to you for help
@@OffshoreCitizen thanks for asking. I believe someone else also asked that they would like to see a video on how to best ensure you separate yourself from the ATO when moving abroad. E.g check list must do ect.
interseted to watch, as someone who moved to dubai to be tax free from the uk and is looking at australian residence and what tax i'd have to pay if i ever moved lol! is it worth it hahah
Hi Michael great videos as always, really appreciate your effort on all this. Just a quick question though, I'm soon to be getting a permanent resident visa in Australia, I day trade but using money from the UK and using an offshore broker (my account is based with Belarus side of the broker) I did see it said I need to report all income earned even if its held offshore. I'm not sure how they'd find out and I'm sure I'm entitled to my tax free amounts in aus and UK. Surely I don't have to tell them money I've got in my broker account that I've made from my trading?
Yes absolutely but you've got to make sure you plan properly around the rules. The Dutch are the smartest tax collectors in Europe too so all the more reason to ensure you do the structuring properly.
DUBLIN offshore trustee owns a British company or is part of a Scottish Limited Partnership, and these strategies are good enough to satisfy the tax authorities?
In Australia? No that wouldn't likely work unless there were some very special nuances to the substance and trust. Elsewhere, depends where but usually LPs aren't a very good for trying to plan into developed countries.
This might not be the best forum to get a glowing report. I've enjoyed my time in Australia without a doubt and have been grateful to be a citizen here compared to other countries in the world. However, the time for me loving living here and smiling evaporated some years ago and that's because I've seen and done most of it over and over. There isn't a lot of variety in the cities. Melbourne the most arts and cultural focused city will take some time to recover from the repeated lockdowns and it's become multiculturally siloed. It depends on what you're looking for of course. Some of the positives are also negative, it's safe which is comforting to know that when I go for a swim on the beach I can leave my bag and it won't get stolen. This isn't possible in other countries. There is a strong fear narrative or safety narrative here which is best illustrated by the over the top management of the corona virus and some laws that make an adult feel like they're a recalcitrant teenager. Australia has Amazing untapped potential with regards to space but regulations and overall conservative decision-makers and small population means it won't progress. Sure it's urban but innovative it's not. Melbourne is just now building an underground train metro service. Hello? But you know, one person's trash is another person's treasure. And it really depends on where you live, like other countries, the culture from state to state city to city is remarkably different. Be prepared to cough up cash if you won't to be buy a home. Housing market is highly overvalued in my opinion but I'm probably bitter about being priced out of it :))))
@@haych27 hey mate, I understand and feel you. This chunk of text resonates with me, Sydney born and moved to Melbourne beginning of 2019. It does get boring, and currently looking to move once air travel is granted again. Assume that won’t be for a few years though at this rate. Where abouts are you residing now?
Thanks for this. The way things are going down under we might soon need a part 2, how to renounce your Australian citizenship.
Simple give back The land which belongs to natives it was never yours
Try become a non tax resident first. Non Aussie citizens can also be taxed by ATO, if they deem u to be a Tax resident
@@mayesha2864 as the "natives" have always said "the land doesn't belong to us, we belong to the land".
Yes part 2 definitely needed.
😂😂😂😂😂😂😂 I would agree....man....its not worth it. Set up shop some where else
Any Aussie digital nomads watching this video? I live in UK atm (Tier 5), just set up a company in the UK..
Thank you, Mike. I have been waiting for this video for months. Great Video. I recently spoke to a financial advisor that works with a lot of Australian expats. A lot of high-net-worth Australians are investing through a private placement life insurance/private unit-linked insurance in Ireland or the Isle of Man. The way how the ATO treats it is that when the policy is above 10 years, you can basically take the gains/ money out tax-free. I want to know your opinion on these.
Great question I'm going to do a separate video on private placement life insurance. There's unfortunately a bunch of things about that the sales people don't tell you in this case but I'll save that for the video.
@@MichaelRosmer Sounds good ,Mike. Looking forward to it.
Is there someone that’s NOT considered an Australian tax resident? 😅😅😅 Hahaha
This got me worried, and I’ve never even been to Australia.
Excellent thanks for covering Aust.I am not surprised it's complicated. All our govt policy is complicated. I've read about Americans complaining about the IRS and been fascinated by the level of fear and wondered how it compares to the ATO. Now I know. I had no idea there is an exit tax. I've thought that as a wage/salary earner I'd be better off in zero tax state in the USA. Cheaper cost of living there
Yeah pros and cons I wouldn't really want to deal with either. Australia has a ton of rules and they are very strict though I find there's less exceptions etc, which apply in the US, which makes it super complicated. The US laws are in my view mostly very poorly written they definitely don't value simplicity.
That was great. As l had always suspected. I have some DYOR to do and thanks for getting me to the starters block.
Glad to be of service! In case you need any help, feel free to reach out :)
The Australian citizen goes to prison for avoiding tax while the international corporation gets grants and subsidised
rewards for avoiding tax.
Good Country
The franchise idiot not corporation owned
how so? im interested to know
Hi - Mike and team at Offshore Citizen. Thanks for the video - very informative and extremely accurate.
It's also worth noting that if the proposed Draconian residency rules are passed (it's looking likely). Ceasing your Australian tax residency will be a nuisance. To do so, you must have spent less than 45 days in Australia in the previous three tax years. With the lockdowns in Australia at the moment and the impossibility to depart Australia, this is impossible! A lot of people will be deemed to be an Australian tax residents for a long time by this.
I appreciate the best way to be deemed a non-resident of Australia is to become a resident of a country with a tax treaty with Australia. Any of these "friendlier" than the others with taxes? Its not such a bad list to choose from.
Have you seen this video from us th-cam.com/video/Xdas1b-8loI/w-d-xo.html ?
@@OffshoreCitizen Thanks. I have! It mainly discusses examples from the ATO in relation to the current residency rules. It does not describe how one can cease Australian tax residency by becoming a tax resident in a tax treaty country or some of those tax treaty countries that have friendlier tax regimes. If you have any videos/info on that, I would be very interested. Thanks.
@@worldwideadvisory I would also be very interested in that
You search some more Aggresiv Tax Collectors? try Germany I think this are the most aggresiv. In German and I have friends where after 5+ years the Tax authoritys asked for paying taxes and they had to prove exactly where they have been the past years.
Oh yes! German tax authorities are certainly on the aggressive list. We’ve heard many stories like this.
Yeah Germany, Denmark, Sweden and a couple others are terrible. The German tax authorities are also a good example of being assholes, which is super sad to see. I could tell you some terrible stories about how they treated people basically assuming guilt going in.
Excise taxes less in Germany than Australia
@@coopsnz1 we have a lot of hidden taxes. You cannot just look at the official tax rates. Just to say you something: the basic Australian have a better live and can buy more then the basic German because of all the hidden taxes etc
@@patrick1992 alchoal excise tax 63% " luxury car tax 33% on cars above $69000aud " ciggreties tax 90% " duties in Australia 5% - 15%
Thanks! Some of the overseas options I would be interested in don't have tax treaties with Australia, and I wonder to deal with that, even if I did become tax resident in my preferred location.
Yeah that's a big thing, you can still make it work but be careful.
I am an Australian citizen planning to move to Paraguay in early August. Now I am concerned because I have to juggle the old way of leaving (basically closing down all you bank accounts etc) and the new way of leaving (spending less the 45 days and waiting it out). However based on the new rules it appears you can be a tax resident of nowhere if you spend less than 45 days a year in Australia and have done so for the last 2 years. Here is the specific rule.
"If you have been an Australian tax resident for more than three years, then in order to cease Australian tax residency, you need to spend less than 45 days in Australia in the current year, and the previous two years. If yes, you then change residency from the beginning of the current financial year (noting that the previous two years will be resident years, even though you spent less than 45 days each year). "
Have these rules been implemented yet I thought they were being considered
It doesn't make sense, it says need to spend less than 45 days in the two previous years AND even if you do, you're still a resident for tax. What rubbish. Who of sane mind is going to tell them if this is passed? Not me.
Not law. Still has to go through all the usual parliament crap. Might not even get passed in it's current from, especially with virus situation at the moment.
Don't even think about being a professional in Australia. Engineers and IT staff in particular get screwed. The guy painting your house gets paid more than you do...
Australia is potentially the best place in the world to be working class and if you don't aim for more. Or a student. For anyone else, run away. Far.
Well said. Completely agree. Had one of the best time of my life during my college/Uni days in Melbourne. Their minimum wage is insanely high that's why the working class is content with their life. They have this thing called the tall poppy syndrome where they basically dislike people with success/wealth.
Middle class screwed not working class in Australia , unless you buy $80000 car here
100% correct. Don't even think about being a professional in Australia. Engineers in particular get screwed. The guy painting your house gets paid more than you do...
Please do New Zealand. We have had new Trust laws come in, higher taxes implemented, can't claim interest on investment properties any more etc. I'm thinking of leaving for another country (worried about exit tax on assets like crypto), but would like to know if there is an option in NZ to minimize or defer tax, especially Crypto assets as 39% tax for what we get is pretty crap really.
Great comment Bradbury! I moved to Panama from NZ/Australia to take advantage of the tax conditions here. There are alot of tests in each Australia and New Zealand to become a non tax resident. Chur Bro.
I believe I did a video on New Zealand not too long ago you should be able to search for it on the channel.
th-cam.com/video/5mWlR5hLAOY/w-d-xo.html here it is :)
Currently looking into setting up a discretionary trust + business model based on my talks with various crypto tax accountants, but still unsure how to proceed. I’m glad I saw this video because it’s makes me doubt whether I should incorporate on Oz as my end goal is to get out of here and apply for a golden visa at a more friendly country. Your absolutely right that rules here are draconian. I’ll be reaching out to you for help
Smart thinking!
More than happy to assist you! Whenever you decide to act, feel free to contact us :)
@@OffshoreCitizen given that Jul 1 is the new financial tax year is there a sense of urgency for me to act sooner you think?
When it comes to these things, it's always better to act sooner than later. So I would say yes
Hey awesome! This is what I just wrote! Hope to sign up with you guys soon
Have sent an enquiry, should I book a call? Thanks
You ask and we deliver :)
Check your email, I've just responded
Great vid Mike!
Thank you!
Anything else you'd like to see?
Social democracy high taxation sucks , the more you spend in Australia more you tax
Tax rate is 27.5 - 30 atm.. lowering to 25 next year I believe
That just income tax , add gst and very high excise taxes in Australia
Very helpful video thank you
Always a pleasure!
Anything you'd like to see next?
@@OffshoreCitizen thanks for asking. I believe someone else also asked that they would like to see a video on how to best ensure you separate yourself from the ATO when moving abroad. E.g check list must do ect.
Michael how does the tax rules affect dual citizenship of uk and Australian?
Thank you Mikael
You're welcome! :)
First great content
Appreciate the support!
What else would you like to see on the channel?
interseted to watch, as someone who moved to dubai to be tax free from the uk and is looking at australian residence and what tax i'd have to pay if i ever moved lol! is it worth it hahah
Hi Mike i was wondering if you could do one on moving from New Zealand
Check this one out m.th-cam.com/video/5mWlR5hLAOY/w-d-xo.html and if you have any further questions, leave a comment :)
Great video mate. DM sent
Appreciate the support, thank you!
Hi Michael great videos as always, really appreciate your effort on all this. Just a quick question though, I'm soon to be getting a permanent resident visa in Australia, I day trade but using money from the UK and using an offshore broker (my account is based with Belarus side of the broker)
I did see it said I need to report all income earned even if its held offshore. I'm not sure how they'd find out and I'm sure I'm entitled to my tax free amounts in aus and UK. Surely I don't have to tell them money I've got in my broker account that I've made from my trading?
So now with Brexit and UK leaving the EU are there any EU Countries with tax treaties with Australia?
Are there possibilities for offline businesses in high-tax countries (I'm in the Netherlands) to benefit from international tax planning?
Yes absolutely but you've got to make sure you plan properly around the rules. The Dutch are the smartest tax collectors in Europe too so all the more reason to ensure you do the structuring properly.
DUBLIN offshore trustee owns a British company or is part of a Scottish Limited Partnership, and these strategies are good enough to satisfy the tax authorities?
In Australia? No that wouldn't likely work unless there were some very special nuances to the substance and trust.
Elsewhere, depends where but usually LPs aren't a very good for trying to plan into developed countries.
The economic crisis and unemployment is enough to push one into self financial ventures like bonds, NFT , Forex and Cryptocurrency.
So many people have been having a lot of failure in crypto trading due to poor orientation and bad expert
Any Australians here that recommend moving to Australia, given the videos subject matter and present political climate?
It's turning into a lefty tax grabbing jealous place for successful people
This might not be the best forum to get a glowing report. I've enjoyed my time in Australia without a doubt and have been grateful to be a citizen here compared to other countries in the world. However, the time for me loving living here and smiling evaporated some years ago and that's because I've seen and done most of it over and over. There isn't a lot of variety in the cities. Melbourne the most arts and cultural focused city will take some time to recover from the repeated lockdowns and it's become multiculturally siloed. It depends on what you're looking for of course. Some of the positives are also negative, it's safe which is comforting to know that when I go for a swim on the beach I can leave my bag and it won't get stolen. This isn't possible in other countries. There is a strong fear narrative or safety narrative here which is best illustrated by the over the top management of the corona virus and some laws that make an adult feel like they're a recalcitrant teenager. Australia has Amazing untapped potential with regards to space but regulations and overall conservative decision-makers and small population means it won't progress. Sure it's urban but innovative it's not. Melbourne is just now building an underground train metro service. Hello? But you know, one person's trash is another person's treasure. And it really depends on where you live, like other countries, the culture from state to state city to city is remarkably different. Be prepared to cough up cash if you won't to be buy a home. Housing market is highly overvalued in my opinion but I'm probably bitter about being priced out of it :))))
@@haych27 hey mate, I understand and feel you. This chunk of text resonates with me, Sydney born and moved to Melbourne beginning of 2019. It does get boring, and currently looking to move once air travel is granted again. Assume that won’t be for a few years though at this rate. Where abouts are you residing now?
No. Just don't freaking do it!!!! No 100%!!!
@@joseg1943 middle class as well tax to hell in Australia
Well this is terrifying.
😂😂😂
Only good landlord is homeless¡
Just leave Australia lol easy. Australian tax is fucked.
I’m so happy I have been earning $18,000 returns from my $6,000 Investment every 13 days.