Australian Dollar

yeah, but Richard Nixon does not back the USD (Greenback) up with Gold Reserve in Fort Know anymore.... ?

 

Doesn't matter. Gold in the vault is a useless metal. What underpins the value of the currency is the economic activity that uses it.

 

A lot. It used to be quite a simple calculation. If you spent more that 182days out of Australia, you were non-resident and therefore didn't pay tax on foreign income.

Now its complicated.
Essentially you need to 'cut ties' with Australia and show that you do not intend to return.
If you maintain assets in Australia other than investments this will be difficult. You will need to justify why you still have them.
If you have any family (wife/kids) in Australia you a resident.
If you have a house not being rented - you are a resident
Although they say that 'days spent in Australia' are only one measure. Im sure if you spend too many days in - you will be resident. However, you could spend 0days in the country and still be classed as a resident.
You need to show you have 'established' a life outside of Australia. Home, friends, interests, work etc. If you are a nomadic backpacker it is likely you will be a resident.

The list goes on.

Blacky

 

Voting in elections is the other big one which I've been told not to do.

 

Incorrect - as an Australian citizen you have every right to, and remain obliged to, vote (if possible).

We could start another thread on this - cos its not really Australian Dollar relevant.

 

That's what I thought as well. However, this was the advice given to multiple people at different companies by their HR department and advisors. The thinking would be that the electoral role is very simple to check and could open you up to the ATO taking a closer look at your situation.

 

Get dual citizenship. It's easier to prove lost connection.

 

Or connection to 2 countries where you have to pay tax. Ie. US citizens who have a threshold but are taxed on worldwide income.

 

Good post. I remember helping a relative look into this around 3 or 4 years ago and even after visits to accountants, lawyer etc there was still no absolutely definitive answer. There's no black and white here, too much open to interpretation.

Having said that thoufh if you're looking that deeply into it then for many people (granted yourself excluded) it probably is a case of them being residents under the new rules and trying to find ways around it

 

Lets take the conversation over here
https://propertychat.com.au/community/threads/foreign-residency-and-tax.1770/

New thread started

 

Not sure where to post this, here I go -

An Update on RBA and the Aussie Dollar and IR

In its Board minutes released Tuesday, the RBA affirmed their desire to see the Aussie dollar depreciate further. The conviction of many economists is that devaluing our currency below 65 US cents is essential for a healthy and growing economy. If so, I’d say this makes another RBA rate cut inevitable.

But don’t expect your lender to be passing the full (or perhaps any) interest saving on to you. APRA just raised capital requirements as a pre-emptive step to curtail further growth in the property market. This was not unexpected as those who read our May 28th Newsletter were alerted to this possibility.

APRA's policy change means the five big banks will now be forced to set aside more cash reserves, a cost that will impact their profitability. In response, it is reasonable to expect mortgages will become increasingly more expensive - perhaps through higher fees, but more likely through interest rates.

 

ANZ has just raised the variable interest rate for new investor loans by 0.27% and the fixed rate for investor loans by 0.30%. At this stage I think it only applies to new loans but it could possibly apply to all investment loans. Time will tell.

 

Wow

 

Haha only someone whose income isn't mostly in AUD would say something like that.
But seriously, a lower AUD means people will be paying a more fuel, imported items and overseas holidays. If you took a poll for what people prefer, I think most would vote for a higher AUD.

 

Guilty

 

True. If only iron ore prices stayed high as they were a few years ago. But alas that would have meant higher interest rates as well.

Can't have both. Must adapt to changing realities and take full advantage of it. Low rates? Pay off your home loan sooner. When rates go back up, it will be less painful at which time the AUD could go up again in the cycle. Then you have more disposable income to enjoy overseas holidays and online shopping. Whether that eventuates in this decade is questionable.

 

HSBC has Flexi Saver Account. Do you know any other better USD saving accounts available?

 

@Kai41314

Don't have a clue abt others.. We just used this account when we travel overseas.

 

I've got a (very) small holding of US stock via CFD - doing very well Looking for opportunities now that a couple of my other projects are winding up.

I would wait for a significnant bottom on the AUD before buying too much or converting anything back.

 

Great.
If prediction come true we will seeing Au$ in 60s