If you are the sole director of a private company (a company with PTY in the name) you must be an Australian Resident. The Corporation’s Act 2001 require that all private companies have at least one director whom resides in Australia. This doesn’t stop you from being able to travel overseas for a holiday, but it does put a spanner in the works if you are intending on being away for an undefined period of time. Don’t panic, you can still maintain your directorship, you just might need to put on a second or third director that is a resident in Australia.
We often find our clients overlook having a HELP (Higher Education Loan Program) debt or a TSL (Trade Support Loan) at the time they decide to move. Unfortunately, simply moving overseas does not enable you to run away from your repayment obligations. In 2016 the government put in place changes to the compulsory repayment of HELP and TSL debts. As a result, if you are living overseas and are earning more than the minimum repayment threshold you are still required to make compulsory loan repayments, just like you would if you were living in Australia.
Due to these changes you must now lodge an overseas travel notification form with the Australian Tax Office, notifying them of your date of travel, intended date of return and updated contact details. Each year you must then lodge an Australian Income tax return or notify the ATO that you are not required to lodge.
Other items that you might like to consider are:
While all of the above can seem confusing and totally irrelevant, it’s important to not forget the ATO. The easiest way to ensure that you are `dotting your I’s and crossing your T’s' is to have a quick chat with your accountant when life changes start coming to view. We can help point you in the right direction and avoid any nasty surprises.