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Post by carvets on Aug 29, 2022 8:42:08 GMT 7
Received the OAP earlier this year after being on the DSP for a number of years and am now considering moving to Thailand soonish. Spent a lot of time over there so i know what to expect on the ground , have done my research on the appropriate visa etc but it was mentioned to me on a facebook group that the ATO are looking at taxing people on the pension if you are living overseas ( something about being a non resident for tax purposes ) .Having little experience of paying tax in Oz due to be on the DSP for a number of years i am a little unsure of what this means . Does anyone have any idea of what this means if it's implemented and how to avoid the 32% proposed tax ?
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Post by bear on Aug 29, 2022 9:02:47 GMT 7
IMHO carvets it's all scare tactics from the self funded retiree brigade, who will be caught up in this as they are earning income in Australia, irrespective of if they are receiving a part pension. It's the EARNING that get you caught up in this, and as such they also must spend a certain amount of time in Oz every year. Those of us on just the pension have no such conditions placed upon us. Our payments are tax free up to the tax free threshold, approximately $18,500 p/y, with a special dispensation up to our full yearly pension that allows it all to be tax free. The last advice I had from the ATO, four years ago, was that provided your only income was from your pension was it'd never be a problem. As always; it never hurts to check with the appropriate government agency, in this case the ATO. Cheers 🐻 www.ato.gov.au/about-ato/contact-us/ |
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Post by carvets on Aug 29, 2022 9:20:23 GMT 7
Yes thats what i thought. And i think the person talking about this may be confusing part pensions with income and the like with just straight out pensions, no income , no assets . Thanks. Is it wise though to keep some connections to Oz ?
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Post by bear on Aug 29, 2022 15:21:00 GMT 7
Yes thats what i thought. And i think the person talking about this may be confusing part pensions with income and the like with just straight out pensions, no income , no assets . Thanks. Is it wise though to keep some connections to Oz ?My connections have been falling away the longer I've been here. I now only have an Australian Bank a/c and a Post Office Box that gets monitored regularly. Nothing of any consequence is ever in it!! I started out with Rego, Rates, Electricity, Phone, Residential & Postal address and the Bank account. Now that I'm getting paid into an overseas account I think they get the idea I'm unlikely to be back; and as far as I'm aware that is an option with OAP/DSP IP with no risk of falling foul of residency rules as we also have the option of advising them we're leaving permanently. To do that though will see your supplements cut on departure instead of six weekk later. If you call to advise you're going OS they'll try to pin you down on a return date. I told them I didn't know yet and I might decide to stay OS. Was then asked to check-in in six months time, which I did; only to find they had no record of that request, and then the last thirty months happened. They can contact me anytime via MyGov. Cheers 🐻 |
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Post by nomadic on Aug 29, 2022 20:19:00 GMT 7
I'm on DSP as I decided not to go on the OAP when it was offered. But years ago legal aid told me to keep some ties with OZ like a bank account and a P.O. Box which are the only things I still have with my pension still paid into it. It seems like 10 years almost since I have had any contact at all from them. I check every now and again on the net that it is still being paid and transfer it to my Thai account on the net also. But who knows when things will change? Those jealous of us being happy on welfare may whip up enough politicians to ask why so many retirees are fleeing in their droves from Australia to Asia or elsewhere for a better life. Taking "THEIR" money out of the country infuriates many already.
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Post by bear on Aug 29, 2022 23:01:12 GMT 7
A fella I knew from back home is here in Thailand as an expat and in financial circumstances vastly better than mine. We've been to-ing & fro-ing for quite a while over the tax rules that were asked about by carvets Last night I received a msg of concern:- "Bear, I know we've been here before, just don't wanna see you get burned for 32.5%" I also received this link. www.facebook.com/groups/australiansinthailand/?ref=share Thread Title;- The question of Retiring in the LoS. Original Poster:- Steve Carter. I read through the comments until I came across the one posted below. Following on is my response to ol'mate, which is to the best of my knowledge how it all goes. Thanks for your concern Bloke, but I read comments until I came to this one:- To Warren Gettens:- Sorry but I was an Executive in Centrelink who was responsible for providing the knowledge to the call centre staff to tell customers for many many years, and can tell you they do NOT provide tax advice. Centrelinks only role is to determine eligibility for payment and the rate you are paid, they do NOT determine IF you have to pay tax OR how much, that is ONLY the ATO who does that. If you asked Centrelink for tax advice on any social security benefit they would tell you to contact the ATO or your accountant. So Centrelink would NEVER have told you that you don't have to pay tax. Nor would they tell you about the rules of residency for tax purposes, including 45 days every 2 years - it doesnt even exist. And there is NO current 2 year rule in place for TAX purposes. You may be thinking of "qualifying" for the age pension period fo 2 years, but that has nothing to do with TAX. Simple ask any accountant whether tax has to be paid on an aged pension, if you reside overseas - they will say 32.5% tax on every dollar if you kive in Thailand" End of Post My Response:- Ex Executive says Centrelink doesn't give advice and would tell you to speak with your accountant or the ATO. I have spoken to the ATO and been advised that as I only have the basic pension I am not liable for any tax because of special dispensation pensioners get above the tax free threshold of $18,500 up to our ceiling which changes twice a year through CPI increases. Currently approx. $25,000 Also as he stated, their is no requirement to be in Australia for any amount of time, according to Centrelink, as the rule doesn't exist. This whole ongoing beat-up is only for those who have their annuities set up so that they still receive some pension. It's because of the earnings from their investments and super that pay their annuities that they must be in Oz a set amount of time every year or pay %32.5 on their earnings. I've got no earnings; I'm on the tax free Australian old aged pension...... Final Thoughts:- Yeah I know; just some random dude claiming to be someone who know something...... It was a good enough yarn for me to close the book on this merry go round of how we're all going to have to go back to Oz every year or pay the Big Tax, with a twist thrown in for good measure that we face our payments being cancelled as well; depending on the source. Ol'mate's and his mates are just a bit salty because he never wants to go back, and in order for that to happen the government will penalize him if he doesn't. Even penalized it's likely more than our basic pensions....... Give me strength!! Cheers 🐻
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Post by carvets on Aug 30, 2022 6:27:11 GMT 7
[/div][/quote] Hi Bear ,Thanks for your reply . I am that OP mentioned above. It was my thread on that FB group asking people what it was like making the move and leaving everything behind. It was going fine until Ol'mate chimed in with his " fear the taxman " posts which then set the thread on fire. It certainly upset a few people and probably caused some nervous reactions. There may be some truth to what he is saying but like you allude to i think its more about people having other higher income streams and still getting the pension while OS. My own personal thoughts were similar to yours and my situation is the same . Would be living on the basic pension with no other income apart from a few bucks from interest on minimal savings which will be decimated when i move and have to deposit the 800,000 baht in a Thai bank. One question though regarding pension transfers. I have an Oz acc with no fees for international transactions . I know some people have their pension paid into their Oz acc and use Wise to transfer to their Thai bank . You said you were getting paid straight into an OS acc ( i assume a Thai acc ) . Is there any benefit to using one process over the other ? Thanks again. |
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Post by bear on Aug 30, 2022 7:06:00 GMT 7
Wow. It really is a small world!!
I used Wise for transfers until recently. The changeover was purely a personal choice with no benefit as such to date.
However, it came to my attention that legislation runs in ten year cycles and the current 2012 rules were due to sunset in April this year. The former government delayed it until next year; so I'd imagine the boffins are locked away somewhere, feverishly rewriting parts of the act.
I just though it may be prudent to be paid direct into a Thai bank account should changes in the act require us to comply with some new regulation which may require a regular yearly return to Australia due to possibly new upcoming residency rules. Maybe I think too much......
My thoughts are that; anyone being paid into overseas account will, should something similar to the above happen; have to be grandfathered. Just being proactive, just in case........
It took some time to organise from over here, with no pay for about six weeks, though once the monthly payment was set up, it now arrives like clockwork every four weeks and I'm happy enough with the result. Currently averaging Bht45,000 p/m which is on par with Wise, but direct from the RBA. Cheers 🐻
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Post by carvets on Aug 30, 2022 7:22:54 GMT 7
My thoughts are that; anyone being paid into overseas account will, should something similar to the above happen; have to be grandfathered. Anyone else will be back on the merry go round.
Thanks for your input. I was thinking it would be good to get over there and set up while things are the way they are now . So , like you say , if any changes do occur we might fall under that grandfather umbrella .
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Post by bear on Aug 30, 2022 7:29:07 GMT 7
My thoughts are that; anyone being paid into overseas account will, should something similar to the above happen; have to be grandfathered. Anyone else will be back on the merry go round. Thanks for your input. I was thinking it would be good to get over there and set up while things are the way they are now . So , like you say , if any changes do occur we might fall under that grandfather umbrella . They haven't had a grandfathering for nearly twenty years, and I can't see them hanging us out to dry totally if it's obvious by our actions we've decided to stay OS permanently. It would have been nice to have one in 2012, with the extra requirements needed to get DSP and Portability. Something like if you're away on xx/xx/xxxx you automatically qualify for IP/UP like was done in 2004 under Howard's LNP. No such luck under the 'more compassionate' government of the day though!! Cheers 🐻 |
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