Working overseas and tax deductions

Discussion in 'Accounting & Tax' started by sublyme, 13th Aug, 2015.

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  1. sublyme

    sublyme New Member

    12th Aug, 2015
    Hi guys/girls,

    Newbie poster and investor here, just wondering if anyone understands how tax deductions work or if I could even get any deductions when I am working overseas and earning foreign income?

    I've been working in the UK for about a year now and looking to return home at the end of next year. I just found out by using the ATO website's online test to determine my residency status, that I would be considered an Australian resident for tax purposes despite living abroad for a couple years. So based on that I'm supposed to still lodge a tax return in Australia.

    I'm not so concerned about last year as I didn't have any investment properties then. But since I will have some this financial year, I obviously would like to take advantage of any deductions that I'm eligible for. I assume I should be able to claim any deductions on interest repayments and depreciation as I would normally if I was at home and earning Australian income but this time they'd base it on my foreign income? And what about getting a tax withholding variation to improve my monthly cashflow?

    I know this is probably a better question for an accountant but thought there's no harm just in case someone else has been in my position :)