Ozziedreamer
Dryer sheet aficionado
- Joined
- Jun 4, 2011
- Messages
- 29
As a point of reference for all Australians, we have never had the 10% withholding tax applied to our Australian investments. We have always used an overseas address and had no issues. We have always declared and paid tax on Australian interest/dividends in our country of residence, at this time the US.
With regards to Australian medicare, none of the providers ever ask if you are resident in Australia. Both DH and I have valid Medicare cards even though we have been overseas for a long time. Also look at the reciprocal medicare agreements and if you have dual citizenship you can probably get around any issues of not being entitled. Personally I have never even heard of a tourist being refused treatment.
DangerMouse
The 10% withholding tax specifically applies to bank deposits. You need to specifically request your financial institution in Oz withhold the 10% tax on interest earnt, otherwise they will not do so. Where it becomes advantageous to do so is in the following example.
An Australian resident that has say $1M AUS in the bank earning 5% interest. This equates to $50,000 per year. If that person moves to Thailand, he can ask that the bank withholds the 10% tax, equal to $5,000. That person is left with $45,000 after tax, or $3750 per month. Assuming a 30:1 exchange rate, that equals 112,500 baht per month. That person also no longer needs to complete an Australian tax return ever, assuming this is his only income, he declares himself as a non resident for tax purposes, and the 10% tax continues to apply for all future interest.
If that person does not ask for the 10% tax to be withheld, then he must fill in a Aus tax return for the income earned in Aus, and as a non-resident will need to pay 30% flat tax, or $15,000. He is therefore $10,000 worse off, and now has only 87500 baht per month, compared with 112,500 baht before.
In either case, there will be no tax to pay in Thailand if the income is not transferred over in the year it was earnt.
So there are clear advantages to declaring yourself a non resident for tax purposes and living in a lower cost country like Thailand.
As for Medicare, I am only going on their official website which indicates that if you are absent for more than 5 years, you would need to prove that you were now planning to reside long term back in Aus
Eligibility and enrolment - Medicare Australia
I cant see how a tourist would be able to obtain Medicare benefits without a Medicare card, and they could only obtain a card if they have reciprocal arrangements with Aus in their country. Of course, a tourist could seek treatment and pay the full fee (ie Medicare subsidy + gap), or alternatively if they have travel insurance, presumably the insurance would pick up the tab.
Reciprocal arrangements are only for certain countries, I dont believe the US is one of them.
http://www.medicareaustralia.gov.au...edicare_enrolment_application_form_011005.pdf
In your case, you retain a medicare card so would be able to obtain the benefit, assuming the expiry on the card has not lapsed. You would also need an Australian address where the Medicare cheque can be mailed to you.
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