6 ms·

Big reason why most tech people I know leave Australia, go over to the states make their million and then come back home. Then the ATO has the audacity to want

Big reason why most tech people I know leave Australia, go over to the states make their million and then come back home. Then the ATO has the audacity to want to tax them for their over-seas income well not residing in Australia.

danieltillett 7y ago
This is false. You only pay income tax if you are a resident of Australia. If you are a resident of another country you pay tax there - Australia is not like the USA in regards income taxes.
- marcus_holmes 7y ago
  unless you were foolish enough to incorporate in Australia, or grant equity while still resident in Australia. The ATO will tax any capital gains at full value if they get half the chance. And they're a law unto themselves, with no independent appeal or way of refuting a decision that they made.
  - danieltillett 7y ago
    There is nothing foolish about incorporating in Australia given we have franking credits so that taxes paid by the company are passed down to the individual. While I have no great love of the ATO, it is a million times better than the IRS. Of course you can appeal a tax ruling in Australia. If you have done something that is an open-and-shut case of tax avoidance then this might not help much.
    - marcus_holmes 7y ago
      During my MBA one of our lecturers was a tax lawyer, and the stories he told of the ATO utterly shafting people were horrendous. I might be biased because of this ;)
afarrell 7y ago
The IRS makes Americans abroad file taxes as well.
- Sahhaese 7y ago
  That's actually unusual, very few countries tax non-residents.
  - Tojot 7y ago
    Only USA and Eritrea to be specific.
- mrtweetyhack 7y ago
  Become a non-citizen.
thundergolfer 7y ago
Not that Australia had a strong software industry in the first place (we well and truly missed the boat) but how the country's leadership is treating the software industry currently is going to ensure we never catch up and miss out on trillions in value for the country. The best and brightest have so many strong reasons to leave, and many will not come back.

danieltillett 7y ago

This is false. You only pay income tax if you are a resident of Australia. If you are a resident of another country you pay tax there - Australia is not like the USA in regards income taxes.

marcus_holmes 7y ago
unless you were foolish enough to incorporate in Australia, or grant equity while still resident in Australia. The ATO will tax any capital gains at full value if they get half the chance. And they're a law unto themselves, with no independent appeal or way of refuting a decision that they made.
- danieltillett 7y ago
  There is nothing foolish about incorporating in Australia given we have franking credits so that taxes paid by the company are passed down to the individual. While I have no great love of the ATO, it is a million times better than the IRS. Of course you can appeal a tax ruling in Australia. If you have done something that is an open-and-shut case of tax avoidance then this might not help much.
  - marcus_holmes 7y ago
    During my MBA one of our lecturers was a tax lawyer, and the stories he told of the ATO utterly shafting people were horrendous. I might be biased because of this ;)

afarrell 7y ago

The IRS makes Americans abroad file taxes as well.

Sahhaese 7y ago
That's actually unusual, very few countries tax non-residents.
- Tojot 7y ago
  Only USA and Eritrea to be specific.
mrtweetyhack 7y ago
Become a non-citizen.

thundergolfer 7y ago

Not that Australia had a strong software industry in the first place (we well and truly missed the boat) but how the country's leadership is treating the software industry currently is going to ensure we never catch up and miss out on trillions in value for the country. The best and brightest have so many strong reasons to leave, and many will not come back.