Was just wondering how the numerous Aussies on here structure themselves in regards to tax. Do they set up a company? Just add to their normal day income ? What are we obliged to do as Aussie residents ? I am a clickbank affiliate...made a handful of sales. What is the tax rate of money earned in the US but sent here via a cheque? (yes thats how we spell cheque in Aus)
Hhehehe.. I think the silence explains it all. I might try the same method. Anyone (aussie) successfully tried the method I am thinking about ?
I have just moved here and under a foreign visa, so i supposed I dont need to open up a company, right? *hope that answer your question*
G'day, I've only just seen your post. This is a big site DISCLAIMER: You should always seek professional advice about tax matters. Now that's covered I have a few points that might help you, in the nature of our little self group: 1. You pay personal income taxes where you owe them. If you are a resident of Australia for Tax purposes you must pay income tax on your *world wide* income. Americans have the same issue. Rule of thumb: if you are resident for 183 days you are a tax resident. 2. If you pay personal income taxes in a one place, you will at worst only have to pay the difference in another place - as long as there is an appropriate tax agreement between the two countries 3. You can't organise your affairs to avoid tax. The Tax Commissioner can declare the actions a tax scheme under Part IV(a) and you owe big time. 4. Many people want to protect themselves from fallacious claims on their assets so they form family trusts to protect their assets. Such structures can have accidental beneficial tax side effects One is that the income can be spread across all beneficiaries at the discretion of the trustee - which can help level the dollars across family members potentially keeping the tax rate at it's lowest possible level. 5. Companies can also be formed to conduct business, properly registered and all that you would pay at most the company rate of tax (30%) and get full "franking credit" if you are receiving a dividend. If you have american sourced money it is part of your world wide income. An accountant can advise on the current rule for a "hobby", ie typically income less than $10,000 or so. I have been advised it is best to have the structures in place before you begin a business venture. Short of that I would have to create the entity eg Company, and register it (not me personally) with CB or other business partners. Tax law is complicated. In recent times tax avoidance is becoming more like tax evasion via Part IV(a). Don't forget if you accidentally pay too much you can always do a "reverse audit" by lodging another return and get your money back. I hope that was some help. An american accountant friend of mine once said it well "pay not a penny less and not a penny more" A switched on accountant is your friend. Tax is a by-product of wealth creation. Cheers