Understanding Your Finances and MoneyUnderstanding Your Finances and Money


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Understanding Your Finances and Money

Hello, my name is Gary and this blog is designed to help you to understand your finances and money. For many years, I thought I understood money. I was paid every month by my employer and then I spent the money on my rent, food and other things. It was only when I inherited a large sum of money. I had no idea how to invest it and keep it safe. I found a great financial advisor who explained the options I had to available to me. If you are looking for information about finance and money, I hope you find my blog useful.

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Organising tax payment for overseas work

A lot of Australians like to travel and work, with a working holiday being a great way to be able to extend your travel budget. However, it's important to keep a track of your tax obligations in Australia so that you don't face a nasty bill after you get back from your trip. 

Reporting all of your income

As an Australian living abroad you need to complete a tax return in Australia which includes all of the income you earn abroad as well as the income that you earn in Australian (including residual income such as interest on accounts that you have left open in Australia, rent that you earn on your property in Australia or dividends on shares that you still own). While much of this data can be picked up by your accountant in Australia but it is easier and more effective if you can keep a track of this income yourself. Many of the places that provide share income or interest can send your income statements directly to your email rather than paper statements. 

Claim your tax exemption

Many countries have a tax treaty with Australia and people are not subject to double taxation on their income that has been taxed in the country it was earnt in. In any case, you can claim back a credit against any tax that you have paid in the other country. In some cases work overseas is considered exempt (such as work in the defense forces) but this still needs to be reported on your tax return. An accountant can give you more specific advice. 

Claim any benefits

In many countries, there are automatic benefits that are deducted from your pay, such as contributions to a retirement fund. It is a good idea when you decide to leave the country and return to Australia to organise these amounts to be credited to your local benefits funds. It is a good idea to get an accountant that is experienced in dealing with overseas work to help advise you on this process so that amount is credited correctly and ensure that you don't get an extra tax bill associated with these amounts. 

If you are an Australian who is working overseas it is important to still submit your tax returns in Australia. Having a local accountant who is experienced in dealing with foreign income can help you to maximise your tax deductions and minimise any potential tax bill.