The ATO has finally confirmed the four-year exemption on foreign income for holders of temporary visas.

Temporary migrants will therefore find it beneficial to keep income source in the UK.

For those migrating permanently, it MAY still be possible to exempt UK income for up to two Australian tax seasons - don't cancel your UK tax status immediately - it could prove beneficial later on down the track.

Cheers

Hi Doug,

Thanks for the info, do you have a link where I can read about it ? many thanks :D

Dougie,

Can you provide a link to this guidance on the ATO website or elsewhere? The Federal Government said in May (see here) that it will present a Bill to Parliament exempting long term temporary visaholders from the charge to tax on foreign income and capital gains, but that hasn't yet been drafted or cleared the Parliamentary process (so far as I am aware).

Best regards.

Hi Alan,

You are correct, the bill has not yet been passed in the Senate - it will do so shortly.

The ATO has however confirmed in a number of publications that foreign source income will be exempt for temp residents.

I would not prepare a 2005 itr on these publications, however would not hesitate in taking the ato view for 2006.

I think the publication was in the foreign income section - sorry cannot remember the exact webpage.

cheers