Professional Advice for Australian Finance

Australian expats are present all over the world. You can find them in all parts of the world. They have a very well-settled life, but the for aussie expat finance they have to take special care as Australian finance is very complicated.

Changes to Section 23AG have had a significant impact for expats in Australia and expats who are residents of Australia for tax purposes but working overseas.  Foreign earnings will generally become/remain taxable in Australia. PAYG obligation may apply for payer. FBT will generally apply on assignment benefits. Where foreign employment earnings are taxable the individual will be required to report the earnings at the appropriate item number in their tax return. For foreign taxes paid on the employment income assessable in Australia, a non-refundable Foreign Income Tax Offset may be available to help reduce taxes payable in Australia. To the extent that foreign taxes have been paid on income that is not included in assessable income (e.g. fringebenefits), this tax is not eligible for the Foreign Income Tax Offset

Understanding your tax residency status in Australia, the double tax agreement(s) with the countries in which you are working and the impact of Section 23AG changes to your taxable income are extremely important.

If you are planning to buy a property in Australia then you have to look for properties and once you have had an offer on an Australian property accepted, you will exchange contracts pretty much straight away. You are entitled to a cooling off period and the contract will be conditional on certain clauses, but basically you are now tied into the purchase and will be required to pay a ten per cent holding deposit. Please note that the cooling off period does not apply if you purchase at an auction. Your solicitor will run local searches, and will check the title dead before you are able to complete. Completion occurs six weeks after the day of exchange.

Be aware that if you decide to sell in order to move to another existing residential property, you will need to apply for FIRB approval again so it is worth making sure that the first property you buy will suit your needs for the foreseeable future.

If you are planning on immigrating to Australia or taking an Aussie expat loan, and sorting out a mortgage when you are there, it is a good idea to take a copy of your credit history, and even a letter from your bank manager, with you. This should make the application process easier, since you are effectively starting again and cannot rely on a good credit history to help gain finance. The majority of Australian mortgages are repayment, and there is no such thing as a self-certification loan meaning that all mortgage applications must be supported by proof of income.

With so many complex rules to be followed it is best to take the services of some professional Mortgage specialist so that you do not have any trouble while buying property in Australia.