Claiming travel as a tax deduction

[rock86]

guy's there is another way around this move os or stay geater then 183 days outside oz, go to a nice little tax free country then tax is no problem anymore.

we have a few right on our door step only a couple of hours flight away.

I made the move a couple of years back, now only come back to oz for the parents and a little business.

have friends that do the 6 months in oz and 6 months os, but for me I was going to do this then found the rest of the world.

happy deducting.

Wrong. The ATO has changed legislation for that this year. It requires you now to have proof that you will be living in that country for a period of (I think) 2 years and greater. Eg. the proof would be buying a house, rental agreement etc.

Alot of wealthy people that used to use the old tax legislation are now going to have some hefty tax bills

 

[Grinder]

guy's there is another way around this move os or stay geater then 183 days outside oz, go to a nice little tax free country then tax is no problem anymore.

or you can set up an offshore trust in Oz then become a PR of Canada, all worldwide income cannot be taxed under immigration law by Canada for the first 5 years. After that you can choose to become a citizen and keep the trust, whereby all income generated from another country (the US) cannot be taxed

 

[Largesse]

What is so wrong about paying tax?

No one wants to pay tax, but if we did not, then think of all the private/government consortiums that would make us pay for general every day things.

i think alot of peoples problem with paying tax is that they feel as if they are subsidizing a) stupidity b) laziness and c) the excesses of few, among other things.

 

[Gerkin]

15% personal income tax rate in Honkers....

compared to our top MTR, it would feel like it was a tax free country.....

Look at the cost of living difference.

You need to be earning about 180K plus for it to be worthwhile.

I have looked at this oppurtunity before

 

[Largesse]

180k HKD isn't all that much.....

 

[Gerkin]

180k HKD isn't all that much.....

When looking for jobs in HK, figures quoted for expats are always in AUD or USD.

I was referring to 180K AUD.

Rent for a sh*tty flat is abot 2K per month. You would need to be spending at least 4K pm on rent. Thats where I got my figures from when comparing it to Australia.

 

[Largesse]

AUS - 180k AUD gross = approx 120k net of basic income tax
HK - 180k AUD gross = approx 153k net of basic income tax

My rent is 400pw for a 1br in inner sydney, or 20800pa.
You say rent would be 4k pm in HK, so 48kpa

AUS After rent and tax = 99200
Hk After rent and tax = 105000

very primative comparison and not taking into consideration alot of things, but HK just edges on that comparison and probably is on par if assuming that other general costs of living (eating, clothing) are higher in HK... which I would disagree with from my short experience living there.

 

[Gerkin]

AUS - 180k AUD gross = approx 120k net of basic income tax
HK - 180k AUD gross = approx 153k net of basic income tax

My rent is 400pw for a 1br in inner sydney, or 20800pa.
You say rent would be 4k pm in HK, so 48kpa

AUS After rent and tax = 99200
Hk After rent and tax = 105000

very primative comparison and not taking into consideration alot of things, but HK just edges on that comparison and probably is on par if assuming that other general costs of living (eating, clothing) are higher in HK... which I would disagree with from my short experience living there.

I agree with general living expenses. However throw in a few more holidays back to Aus each year, a few treks around Asia living the Expat life and youd probably be just under.

I

 

[wildkactus]

Wrong. The ATO has changed legislation for that this year. It requires you now to have proof that you will be living in that country for a period of (I think) 2 years and greater. Eg. the proof would be buying a house, rental agreement etc.

Alot of wealthy people that used to use the old tax legislation are now going to have some hefty tax bills

yes they have and I as well as most of the people I know who are doing it apply the abode test which means we have the os country as our abode. like we have rental apartments, phones, bank accounts etc.

the only way this works is you do have to make the move os.

Happy Trading.

 

[wildkactus]

or you can set up an offshore trust in Oz then become a PR of Canada, all worldwide income cannot be taxed under immigration law by Canada for the first 5 years. After that you can choose to become a citizen and keep the trust, whereby all income generated from another country (the US) cannot be taxed

yes thats another way, but canada is too cold for me.

Happy trading

 

[wildkactus]

hong kong is a tax free country??

Hong Kong is tax free if you do not conduct business there.

as their tax system is territorial based IE only what happens within their borders is taxable.

Happy Trading

 

[wildkactus]

What is so wrong about paying tax?

No one wants to pay tax, but if we did not, then think of all the private/government consortiums that would make us pay for general every day things.

Nothing, Its the amount that you pay, IMHO you pay too much in OZ for not enough return.

Happy Trading

 

[wildkactus]

Look at the cost of living difference.

You need to be earning about 180K plus for it to be worthwhile.

I have looked at this oppurtunity before

not so you can live in Hong Kong quite well if you don't live in the middle of it all
I used to live on the harbour in central (CBD) and paid about USD10K a month for an apartment.
now I live in house out in the new territoies for USD1500 a month, and the cost of food and daily supplies is about the same as OZ, its where you live in HK that makes it sooo expensive. eat and live local and its quite reasonable.
where I am in the new territoies there are heaps of Expats, so its quite interesting at times.

Happy Trading

 

[Largesse]

not so you can live in Hong Kong quite well if you don't live in the middle of it all
I used to live on the harbour in central (CBD) and paid about USD10K a month for an apartment.
now I live in house out in the new territoies for USD1500 a month, and the cost of food and daily supplies is about the same as OZ, its where you live in HK that makes it sooo expensive. eat and live local and its quite reasonable.
where I am in the new territoies there are heaps of Expats, so its quite interesting at times.

Happy Trading

I heard the downside to living in the territories is that some of the places are practically gated communities, and everyone has their nose in each others sh.t. alot like you'd expect to see on that desperate housewives show.
and along with that you have a whole love of bankers/traders/financiers wives with too much time on their hands just looking to find trouble.

just what i heard anyway.
i've family that are expats there but live on old peak road

 

[wildkactus]

I heard the downside to living in the territories is that some of the places are practically gated communities, and everyone has their nose in each others sh.t. alot like you'd expect to see on that desperate housewives show.
and along with that you have a whole love of bankers/traders/financiers wives with too much time on their hands just looking to find trouble.

just what i heard anyway.
i've family that are expats there but live on old peak road

Yeah you do, you have to pick your place, I am north up near the border, the bankers and the like don't come this far up, some friends live on the outer islands and they have a great heap of space for the kids and no city types.
its a great place and a lot bigger then just the city, which a lot of people never see.
Happy trading

 

[Julia]

i think alot of peoples problem with paying tax is that they feel as if they are subsidizing a) stupidity b) laziness and c) the excesses of few, among other things.

That's quite true. There's a pretty good case for less tax and more user pays imo but I suppose that's always going to be politically unappealing. Plus those who use the most services usually contribute the least in revenue.

 

[jono1887]

That's quite true. There's a pretty good case for less tax and more user pays imo but I suppose that's always going to be politically unappealing. Plus those who use the most services usually contribute the least in revenue.

Precisely.. taxes should be minimal to provide general infrastructure, healthcare, education and defense. Everything else such as welfare payments should be abolished. The money is going to people who least deserve it IMO

 

[gooner]

Precisely.. taxes should be minimal to provide general infrastructure, healthcare, education and defense. Everything else such as welfare payments should be abolished. The money is going to people who least deserve it IMO

Jono1887

Let's hope you never find yourself unemployed with a family to support and can't find a job. And let's hope that you get a high paying job to put money into super so that you have a decent pension, rather than a minimum wage job where you can not afford to save money for your retirement. Let's hope that you are not crippled for life next week by an industrial accident so that you can never work again.

Because if any of these do happen, you will be out on the street without a house begging for food, because the Government has abolished welfare payments.

Of course you may already be wealthy, so have a safety net and don't give a rats a**e about your fellow human beings. Fortunately most Australians do give a rats a**e and would never vote in an extremist government that would abolish welfare payments

 

[Largesse]

Precisely.. taxes should be minimal to provide general infrastructure, healthcare, education and defense. Everything else such as welfare payments should be abolished. The money is going to people who least deserve it IMO

Dumb post.
There is definitely a place for welfare in our society, particularly people with disabilities and the marginalised, however welfare in it's current form is a disgrace.
Supporting the middle class is just ridiculous, and a system where I could qualify for Youth Allowance so I could sit on my ass while at Uni when my parents collectively earn well over $500k pa is absurd and while I will take anything I am 'entitled' to, it's a joke that I have access to it.

Cut out unjustified welfare payments, reform the unemployment criteria and add this to the already implemented gradual phase out of seniors pensions and we should be able to lop a solid 5%+ off all MTR's, possibly even more.

P.S. Now that i've posted that i'm going to go have a squizz at the current social services budget allocations and run the ruler over it, i'm bored enough here at work. I wonder if Wayno left any detail in it....

Edit: Gooner pipped me at the line

 

[Julia]

Precisely.. taxes should be minimal to provide general infrastructure, healthcare, education and defense. Everything else such as welfare payments should be abolished. The money is going to people who least deserve it IMO

That's very harsh, jono. I would hate to live in a country without a decent welfare system. Gooner has made the points that I would have.

None of us know when we may need assistance. And, in contrast to what you say above, there are many people who don't receive anything like the assistance they deserve, e.g. people with severe disabilities.

Some time, when you have a spare hour, take yourself to some of the grottiest, most disgusting caravan parks that exist in your town/city and think about how it would be to live in a place like that. All it takes, jono, is for you to develop a mental illness and be unable to properly manage your life as a result. Instead, you are pretty defenceless against every creep who will steal from the small welfare income you have, and otherwise abuse you.

You seem to imagine life is a business over which everyone is able to exert total control. Just ain't so, sunshine.