|Home||Skilled visas||Business visas||Temporary visas||Free assessments|
18 July 2006
The proposal passed the Australian Parliament at the end of May and was given Royal Assent in mid-April. The official title is Tax Laws Amendment (2006 Measures No. 1) Act 2006 (No. 32, 2006) - Schedule 1. The main beneficiaries of the change are intended to be individuals with an employer sponsorship who have been granted a visa under subclass 457. Other foreigners and temporary residents may also benefit.
Excerpted directly from the legislation :
This Subdivision modifies the general tax rules for people in Australia who are temporary residents, whether Australian residents or foreign residents.
Generally foreign income derived by temporary residents is non-assessable non-exempt income and capital gains and losses they make are also disregarded for CGT purposes. There are some exceptions for employment-related income and capital gains on shares and rights acquired under employee share schemes.
Temporary residents are also partly relieved of record-keeping obligations in relation to the controlled foreign company and foreign investment fund rules.
Interest paid by temporary residents is not subject to withholding tax and may be non-assessable non-exempt income for a foreign resident.Related: