Contracting in Australia

[beaker]

Hi, ok I know questions about working in Oz have been asked before, but my situation is a bit different.

I am Australian. I've been living & working in London for 2.5 years (so no longer a resident for tax purposes in Oz). I've been offered a 6 month contract in Sydney through an agent here. I will most likely return to the UK once I've finished the contract, and may do some or most of the work from the UK.

What's the best way to get paid?
1. Get paid into my Oz account - therefore pay tax in Oz, but not in the UK?
2. Get paid into my UK umbrella or ltd - avoid tax in Oz but pay tax here?

Has anyone had experience in going back to their home country to contract for a while before returning to the UK?

Thanks!

[beaker]

36 views but no replies yet!

[Devlin]

My guess is that getting paid into your UK limited might be best as I don't think you'd have a similar option in Oz to avoid PAYE tax?

[beaker]

My guess is that getting paid into your UK limited might be best as I don't think you'd have a similar option in Oz to avoid PAYE tax?

Thanks for the reply! With the lowish PAYE taxes in Oz I was thinking I could be better off getting paid there and keeping it there rather than adding to my tax burden in the UK

[Devlin]

Thanks for the reply! With the lowish PAYE taxes in Oz I was thinking I could be better off getting paid there and keeping it there rather than adding to my tax burden in the UK

Low compared to what exactly? Anything over AUD 30k is taxed at least 30%

[beaker]

Errmm... so about the same tax rate as here then through a ltd

[Devlin]

Errmm... so about the same tax rate as here then through a ltd

True if your turnover is less than £32k which it may well be for 6 months work in Oz.

[rootsnall]

I'm not really up with it anymore but used to work on and off in the UK and Oz and thus had similar issues. The best option a few years ago would of been to get paid in Oz as a non resident and take up some fairly generous tax free daily allowances that were on offer. You need to speak to somebody at the Oz end, I use to use Ayers Management based in Sydney, possibly changed their name if my memory serves me right, suggest a google.

[rootsnall]

Low compared to what exactly? Anything over AUD 30k is taxed at least 30%

Low compared to the UK tax rate including NI. The real tax rate in the IR35 phase II world coming our way soon !

[KathyWoolfe]

Low compared to what exactly? Anything over AUD 30k is taxed at least 30%

Considering that £1 = at least 2AUD then you're paying 30% tax on sums over £15k