Overseas Income Subject to Tax in Australia

The following are examples of income subject to Australian tax:

• Net rental income.
• Interest.
• Consultancy fees.
• Royalties.
• Overseas pensions (includes government pensions).
• Profits from partnerships and sole traded businesses.
• Dividends.
• Certain investment income (i.e. ISAs).

Migrants should pay particular attention to dividends received from private companies as no credit is given in Australia for the tax paid by the private company on profits in the company.

Dividends from a UK private company, received by an Australian tax resident in the top tax rate, effectively have the original profit in the company taxed at approximately 64%.

We particularly urge clients who will retain assets in their original country to obtain professional advice before they migrate.

At UHY Haines Norton we have a specialised team who can assist you with your planning.