Living in Australia but working and taxed in PNG with Investment property here

Hi Evolve'

He will still be classed as an australian resident wages after tax paid into au account but tax and super paid in PNG

Ist Investment so not sure how this will effect it next year. This years all done ok and straight forward as still working here at present possible job offered after we had seen our accountant.

Thanks for any advice you can give

Hi Terry  and Evolve,

To give you an update, and ask for more help please

Well he took the plunge and is now working in PNG 24 days on 18 off.  Done lots of reseach but still a few grey areas as I heard that although he will get a tax credit for tax paid in PNG and I have looked on the ATO to see how this is worked out, what I am hearing differently is about whether or not he can claim a tax refund on depreciation and deductable costs for the IP, if he has not paid tax in this country. This year he will have done for the first 3 months of this tax year, but what happens over the following tax years? Does it get banked until he is earning in this country again? Main reason for asking as we would like to get a 2nd IP but want to know we have this bit right first as we keep getting told different things. He will still be classed as an Aussie resident not PNG but his taxes will be paid over there and then his net converted back to AU and paid into his bank account over here.
Checked on the tax rules in PNG and he doesn't have to declare rental income from here so therefore sounds like he cannot claim the depreciation and deductions out of his PNG tax?

Any help or advice will be appreciated

Thanks Jean

Hi Terry,

So what you are saying is at the end of the PNG tax year he can claim for the Ip that we have here through his taxes over there, he just has to arrange time to see a tax agent over there and do it the same way he did here this year. He will be a non resident of PNG and still a resident of here. He is on a fly in fly out contract.

Have I got that right?

Thanks Jean

Hi Storm,

Thanks for your answer.
 
Its nice to find someone actually based out there. Sounds like the way it was done in the UK we never had to put in tax returns every year. One question though we knew about the tax year running from Jan 1st to Dec 31st and that he would receive a statement of earnings, when he see's the accountant over here next July/August the money earned in PNG from Jan to June does he have to apply for another statement for that period or will his tax just always be 6 months behind here, and amendments put in for each year to correct things.

Thanks again for the info,

Jean 

Thanks Terry,

That is good news, I guess the same goes if he sells while still working in PNG the rollovers will reduce his capital gains then too. I know he can take a whole year off and reduce capital gains that way, picked that up from the guy doing a tax seminar from the ATO in Brisbane a few months back. Before Paul got offered the job overseas typical.

 I don't mind going ahead with a second IP now, just got to find the right one still reseaching while Paul gets settled into his new job out of Port Moresby and obviously need time there before applying for another loan.
The first IP we did through using the equity in our home mortgage as collateral, on an I/O loan with 100% offset attached. We don't use the offset only couple of $s in it. We just use it for receiving rent and paying interest payments on the loan, as we have one attached to our home loan which we fully utilise including the instant transfer of rent into it on the day it hits the account. We are thinking of doing an I/O LOC for 22-23%  to cover deposit and expenses and then take out an 80% I/O for the reminder. 
May just have to build up a bit slower than planned.

Thanks again for your help I really appreciate it, You guys on here are great.

Jean

Hi Storm,

Thanks very much for that info, certainly beats having to do amendments every tax year.

Jean