Australian Tax Working Holiday is Over

In a recent report, it is alleged that the Australian government declared the Australian tax holiday as having reached an end. This was announced during the hand down of the 2009-2010 federal budget, some weeks ago, and is set to affect thousands of UK based Australians. In his recent announcement, treasurer Wayne Swan confirmed that new laws will be coming into effect from 1 July 2009, that will ultimately disadvantage Australian citizens, who are living and working in the UK, as far as their Australian tax obligations are concerned. Currently, Australians who have been residing in the UK for more than 91 days are exempt from paying tax in Australia. According to Swan, these new laws are going to disallow Australians living and working in the UK to reduce or eliminate their Australian tax liabilities. As from 1 July 2009 Australians, living in the UK will now be subject to their full Australian tax obligations, with a tax credit being available for any paid tax on their earnings in the UK. This new legislative measure will have an estimated gain of $675 million in revenue to the Australian Government over the next 4 years. According to expert financial service and Immigration firm, 1st Contact – these changes are set to affect the majority of Australians living and working in the UK. For more information on this issue or to attain expert advice on how these changes could affect you, contact 1st Contact Australia today