Let’s unravel the mystery of Indirect Australian Real Property Interests (IARP). What Are IARP Interests?Indirect Australian real property interests refer to membership interests in an entity that—subject to a few exclusions—satisfies two key tests: Non-Portfolio Interest Test: This test checks whether the interest represents a significant stake (usually 10% or more) in the entity. Principal Asset Test: Here, we’re…
Reporting foreign income to the Australian Taxation Office (ATO) is an important aspect of tax compliance. Let’s dive into the details: Australian Resident with Foreign Income: If you’re an Australian resident, you must declare any foreign income you earn on your Australian tax return. This includes income from sources outside Australia, such as rental income from…
Let’s dive into the tax implications when you spread your financial wings beyond our sunny shores. Corporate Tax at the Source: First off, when you invest in foreign stocks, those companies are taxed at their home turf. Yep, they pay their corporate taxes there. But here’s the twist: These investments don’t dance under the Australian…
Let’s waltz through some strategies to minimize your tax bill when selling that charming villa in Tuscany or that beachfront shack in Bali. Foreign Resident Capital Gains Withholding (FRCGW): First, let’s address the elephant in the room: If you’re selling foreign property in Australia and the sale price is $750,000 or more, the ATO does…
Let’s unravel the tax implications for Contractors. Australian Taxation Office (ATO) Wisdom:As an independent contractor in the land Down Under, you’re effectively treated like a small business. Picture yourself in a cozy corner office (or maybe just your home office with a nice cuppa). Here’s what you need to know: ABN (Australian Business Number): First…
