Withdrawing from your foreign super fund? Know your tax consequences first!
Expats returning to Australia should check before withdrawing from their foreign super fund.
6 August 2020
Expats returning to Australia should check before withdrawing from their foreign super fund.
The Full Federal Court decision in Harding clarified two of the four tests for when an individual is a tax resident of Australia.
The High Court has refused to grant the ATO special leave to appeal the Full Federal Court’s decision in Harding v Commissioner of Taxation [2019] FCAFC 29. The effect is that the Full Federal Court decision stands.
A person may be a tax resident of Australia even if they are not residing in Australia. This includes where the person’s domicile is in Australia, and they do not have a ‘permanent place of abode’ outside Australia.
Well, it depends. There are four tests for whether an individual is a tax resident of Australia under Australia’s domestic tax law.
The recent Full Federal Court decision of Harding v Commissioner of Taxation is an important tax case for Australian expatriates living and working overseas. The Court analysed two of the tests for when an individual will continue to be a tax resident of Australia.
The recent decision of the Federal Court in Harding v Commissioner of Taxation will make it difficult for Australians living and working overseas to be non-residents for tax purposes.