Through our Melbourne based sister company gomatilda.co.uk, we can provide you with information concerning tax and accounting in Australia and indeed many other matters relating to a move to Australia. You may be planning to live in Australia and/or to set up a business - we can give you guidance on what you should be aware of before you get there, and can point you in the right direction after you arrive.

The main point to be aware of when considering Aussie tax is that an Australian resident individual or company is subject to tax on income from all sources in the world, whereas a person who is not an Australian resident is only subject to tax on income with a source in Australia. The issue of when an individual or company becomes tax resident in Australia, and the timing of any windfall profits or gains that might arise around the time of becoming Aussie tax resident is therefore very important if you are planning to move to Australia and want to minimise your tax bill.

The source of income is clearly also significant for an individual who is not an Australian resident, where income or a capital gain has been derived from an asset that has some connection with Australia.

We can help with these key aspects of your tax affairs if you are concerned about your liability to tax in Australia.

If you are an individual we can help you obtain a Tax File Number from the Australian Taxation Office. If a TFN is not quoted you can expect your salary or any interest income above $120 to be subject to a withholding tax equal to 48.5% of the gross income.

If you are a business, whether you are carrying this on as an individual, a limited company, or otherwise through a permanent establishment in Australia, you are required to obtain an Australian Business Number from the Australian Taxation Office. The ABN is a unique 11-digit identifying number for all business dealings with the ATO and for dealings with other federal Government departments and agencies. Where an ABN is not quoted in a transaction that involves a supply for Goods and Services Tax purposes the payer must withhold an amount equal to 48.5% of the payment.

Although credit is given eventually for amounts withheld, it is clear that you should obtain all required registration numbers at the earliest opportunity.

If you are an individual planning a move to Australia, or are a business planning to expand your operations into Australia - contact
Collett & Co Chartered Accountants