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Australian Tax Incentives - it's all good mate ... |
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Friday, 17 March 2006 |
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High-flying foreign executives will be free to work in Australia without the burden of local tax on their offshore income, under new rules announced recently. Tax experts said the laws should enable foreigners to legitimately park money in offshore tax havens and live tax-free in Australia, so long as they paid tax on their Australian income. If you want to know more,
The regime will apply to expatriate workers so long as they hold a "temporary" Australian visa - which can be renewed indefinitely it was reported in the Australian Press. "If you were that high-flying executive you wouldn't have to think so hard about coming," said Sarah Lane, a tax partner at Deloitte. This would also enable Australians to leave, make a fortune, and return as temporary residents without paying tax on their new-found wealth. Treasurer Peter Costello said the changes would give Australia one of the world's most competitive expatriate tax regimes.
The laws go further than previous Bills rejected by the Senate, as there will no longer be a four-year limit for the tax exemption and it will apply even for temporary visa holders who had previously held Australian residency. The Bill is scheduled to be introduced to the House of Representatives soon and should pass quickly through Parliament with support from Labor. Long-awaited tax promoters legislation was also introduced to Parliament recently. The laws will close a glaring loophole that allowed investors in tax evasion schemes to be punished but not the promoters of those schemes.
Assistant Treasurer Peter Dutton said the rules would "deter the promotion of tax avoidance and tax evasion schemes, while allowing flexibility for legitimate tax planning". Labor's spokesman for revenue, Joel Fitzgibbon, said the tax promoters legislation "was long overdue" and would receive his support. He said he was also "inclined" to support the expatriate worker's bill. "These measures obviously will enhance productivity by attracting skilled labour, particularly executives," he said. |
