Would I be Better off as a New Zealander?

[HomeBuyAU]

I did post something here but it would probably go off topic so I thought it is better to start a new thread....

my current situation is that I only now own one property in Australia, an apartment in NSW that is an IP. I'm currently back here for a month to renovate it and then I will fly back to Asia where I live on a beautiful island very cheaply with an amazing tropical beach at my front door.

I have my fiancee there as well and I have an Internet business that I run on my laptop which makes money from the USA. I don't make much at all at the moment but I hope that will pick up again soon with a bit of work I need to do...

Anyway I was born in Aussie but I have NZ citizenship by descent and a NZ passport too although I use the Aussie one when I travel.

I wonder if I would be better off paying tax in NZ and maybe living there for a few months of the year as opposed to Australia but I would still like to keep my IP here for another year and I could sell it then to invest in a business abroad. I have no financial interests in NZ.

btw I don't like league, footy or rugby these days although I enjoy a rugby world cup or International game on TV occasionally and I root for the aussies.

 

[wylie]

Do you like sheep?

 

[pennyk]

btw I don't like league, footy or rugby these days although I enjoy a rugby world cup or International game on TV occasionally and I root for the aussies.

well that would need to change.. both the level of interest and who you barracked for! are you prepared to pay that price!?!

 

[matto_]

The project was talking about the large number of peeps coming across the ditch - using the current rate there wont be any people left in NZ shortly.

so maybe it doesnt matter.....

 

[mattnz]

If you become a malaysian citizen they have a scheme that allows you to pay no income tax on your foreign income.

Note that Australia is about to have an $18k tax free threshold....at least if Julia remains in power lol.

 

[HomeBuyAU]

If you become a malaysian citizen they have a scheme that allows you to pay no income tax on your foreign income.

Note that Australia is about to have an $18k tax free threshold....at least if Julia remains in power lol.

that is all very interesting. I stopped in at Malaysia on my way back for a day and I quite liked the place, friendly people even if I'm not in their religion and cleaner etc than the Philippines where I live now plus better food. The only problem is that I would prefer to stay on my tropical island as it has everything I want there and I only pay $50 a week rent for a home on the beach front where the sand is white and the water is crystal clear.

 

[coastymike]

Im also in the phils but no sandy beaches or warm water in makati. But have a burgeoning outsourcing business here and the costs although not as cheap as the islands is very cheap. Particularly when you are earning aussie dollars and paying in peso.

Im spending about 50k aud per annum but for that im getting a house in forbes park, car, driver, maid, gardener and personal security, eating out every night of the week and going to boracay, palawan and other islands most months for a weekend trip.

 

[HomeBuyAU]

Im also in the phils but no sandy beaches or warm water in makati. But have a burgeoning outsourcing business here and the costs although not as cheap as the islands is very cheap. Particularly when you are earning aussie dollars and paying in peso.

Im spending about 50k aud per annum but for that im getting a house in forbes park, car, driver, maid, gardener and personal security, eating out every night of the week and going to boracay, palawan and other islands most months for a weekend trip.

Makati is a nice part of Manila. I stayed there last week for a day with my girlfriend, the greenbelt mall had some of the best restaurants I had been to in the Philippines so far. Yes you could certainly do well running an outsourcing business there with the exchange like you say to pesos.

 

[mattnz]

My wife is Phil too. If we lived there, any idea what would the effective tax rate be likely to be for US investment property?

We were thinking maybe retire to Bohol, or at least have a house there, where is your island?

 

[coastymike]

Yea some awesome places to eat there and around makati. Australian firms are much more comfortable with outsourcing work and the smsf monthly administration process can be done cost competitively here. We have a number of accountants and financial planners using us now whereas 5 years ago many would have been reticent to outsource. Being based in the phils and managing the team here however is very important. Its one thing people think you can do by remote control but you cant.

 

[INXS]

I did post something here but it would probably go off topic so I thought it is better to start a new thread....

my current situation is that I only now own one property in Australia, an apartment in NSW that is an IP. I'm currently back here for a month to renovate it and then I will fly back to Asia where I live on a beautiful island very cheaply with an amazing tropical beach at my front door.

I have my fiancee there as well and I have an Internet business that I run on my laptop which makes money from the USA. I don't make much at all at the moment but I hope that will pick up again soon with a bit of work I need to do...

Anyway I was born in Aussie but I have NZ citizenship by descent and a NZ passport too although I use the Aussie one when I travel.

I wonder if I would be better off paying tax in NZ and maybe living there for a few months of the year as opposed to Australia but I would still like to keep my IP here for another year and I could sell it then to invest in a business abroad. I have no financial interests in NZ.

btw I don't like league, footy or rugby these days although I enjoy a rugby world cup or International game on TV occasionally and I root for the aussies.

Tax rates tend to be higher in NZ compared to Australia. NZ are the rugby and rugby league world champions so that is an advantage in NZ favour.

 

[INXS]

If you become a malaysian citizen they have a scheme that allows you to pay no income tax on your foreign income.

Note that Australia is about to have an $18k tax free threshold....at least if Julia remains in power lol.

This is the biggest con ever!!. The tax free threshold was $16k already because if the low income tax offset. Now the government has got rid of the offset and changed the tax rates.

 

[mattnz]

Doesn't that mean it favours those that are on a higher income and weren't previously allowed to get the low income benefit as they still get the benefit of the $18k threshold?

 

[Ed Barton]

Doesn't that mean it favours those that are on a higher income and weren't previously allowed to get the low income benefit as they still get the benefit of the $18k threshold?

tax rates are going up. 18k-37k goes from 15% to 19 and 37k-80k goes from 30 to 32.5k. only the very low paid earners will be better off.

 

[mattnz]

Ah ok, I followed the budget pretty closely and wasn't aware of that at all. Really was a total spin job done by Labour.