Late SMSF Tax Returns
In order to correctly prepare a 482 VISA Tax Return and to understand an individual’s tax situation one of the most important concepts to be determined here is tax residency. Tax residence is different from residency for immigration purposes. In a tax return, the tax residency status on a 482 Visa tax return could either be resident or non-resident.Therefore one may be an Australian resident for tax purpose even if he/she is not an Australian citizen or a permanent resident for immigration purposes.
Generally speaking there are two categories a 482 visa holder may fit into: Australian resident for tax purposes or temporary residents. There are four tests to determine whether an individual is an Australian tax resident as shown below:
- The resides test: if you reside in Australia according to the ordinary meaning of ‘reside’, that is ‘to dwell permanently or for considerable time, to have a settled or usual abode, and to live in a particular place’. Affecting factors include physical presence, intention and purpose, family and employment ties, maintenance and location of assets, social and living arrangements.
- The domicile test: a place you consider to be your permanent home. This could be by origin (where you were born) or by choice.
- The 183 day test: when over half of the year is spent in Australia.
- The commonwealth superannuation fund test.
- Other tests to determine residency.
Satisfaction to any of the test above automatically makes one an Australia tax resident, and thus should abide by the Australian taxation law for income they’ve earned, whether here in Australia or not. Australian residents are taxed on worldwide income.Hence on a 482 Visa tax return, as a resident if you did earn any foreign income, you would need to declare and pay tax on this income too. However, the tax you paid overseas could be offset against your tax payable in Australia if there is a Dual tax agreement with the country from where you earned the income.
If none of the above applies, an individual can still be a temporary resident if:
- You hold a temporary visa (482 in this case) granted under the Migration Act 1958.
- You are not an Australian resident within the meaning of the Social Security Act 1991.
- Your spouse (if applicable) is not a resident within the meaning of the Social Security Act 1991.
- Other tests to determine your non-resident status.
In this case, you only need to declare income derived in Australia plus any income earned from employment or services performed overseas while you are a temporary resident of Australia. All other foreign income and capital gains would not need to be declared. However kindly note the tax rates on a 482 Visa TR would need to be then considered to be as a non-resident.
We have prepared many resident and non-resident tax returns and given the complexity involved regarding the residency on a 482 VISA tax return, it is best to get professional help to prepare such tax returns. Whatever your situation may be, we are here to assist and help get your tax return completed.
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