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Thread: Australia/Overseas money transporting/tax problem

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    Member tex010's Avatar
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    Default Australia/Overseas money transporting/tax problem

    Since I´m considering the option to work in Australia under work and holiday visa as dancer (possibly up to 2 years) the question how to handle money made in country you are not residing?

    Okay, this is hypotetical, but if I´d average, say 700AUS per week and work say half of the time there as dancer I´ll propably end up with hell of a lot more "floating" cash than your average packpacker. The question goes, how to get all that out of the country? So I´d be paying the australian taxes, alright, but how about when I return europe? Will I be taxed again, and how much?

    Is there any legal way to avoid this rip off?

    One way could be to invest on australian/new zealandaise degree, I have one particular in mind, sure I could buy an NZ degree from OZ with the money made there?

    Ah, this is a bit trcky and I´m propably not making it any easier, but we have some clever ladies here

    Melonia posted this to another thread, could someone clarify?


    "Re: HELP! Sending money frm the US and Pay pal query

    --------------------------------------------------------------------------------

    yes but again be aware that these cross-border financial transactions WILL be monitored, and if the total amount transferred within the same year starts to get significant it will almost certainly trigger IRS/Inland Revenue attention being brought at both ends."

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    Member tex010's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    oops, I propably should have just added this to the "for australians" thread, but then again somebody else might also know about money transferring... Moderators, do as you please

  3. #3
    aussiepunkshocker
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    Default Re: Australia/Overseas money transporting/tax problem

    You can send money overseas via Western Union. Some dancers I know just carry the cash around with them and leave the country with thousands of dollars on their person. Others just spend everything they make whilst they're here (-:

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    Member tex010's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    Aussipunk: I´ve understood the maximum amount of $ on cash in you´re allowed to enter/leave a country is something like 10 000US$/€... I´ve used Western Union sometimes (on other purpouses..) but I´m suspecting the gooddam authorities must be following your accounts as well. Though sending the $$ to someone personally might work-out is done in small amounts.. hmm.

    However there are people striving to get a top diplomas à ce momant to prevent me from doing this either, I´m affraid.

    And just for the possible authorities browsing though this thread; I´m determent to stay on the leagal path

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    God/dess GoldCoastGirl's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    As for the legal authorities browsing this thread or any thread: the Dollar Den board isn't for tax evasion purposes.... so you have no worries. I know I will never tell you how to avoid paying tax ... just how to minimise it. There is a difference between tax evasion and tax minimalisation.

    None-the-less, any money you earn in a country that is not your resident county is tax free money in the country you are earning it. In your case, any money you earn in Australia will be tax free (this is all generally speaking). The downside is that you will have to declare this money 'back home' (to your resident country and their tax office).

    Granted, just like the ATO does with Australian dancers, your resident country won't know how much you actually earnt as a dancer due to the nature of the industry (being cash-based aka "cash in hand"). All it will know is that you danced as your temporary Australian Tax # will be listed with various clubs (since you aren't Australian you won't have/need an ABN).

    Therefore, you only basically will be taxed (when you arrive back in your resident country) on money that you have declared and have on you when you leave the country.

    Also, the limit of money in cash that you can have on you when leaving Australia is $10,000 US the last time I checked.

    In the end, I'm just giving you information based upon what I think is correct. I'm not an accountant therefore I strongly advise you to consult an accountant in your home/resident country about all of this.


    enter: E3167322D9 for your 10% discount

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    Senior Member DanMorris95156's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    Just a point of information -

    Earned income is almost always taxable in the country of origin (not of residence) and there are frequently foreign tax credits in one's "home" country. Example - earned income in AUS probably creates a "tax" nexus in AUS and may (depending upon length of time outside the US) create a preferential tax treatment on the foreign earnings (more complicated then this post).

    In essence, earning money in foreign lands and not contacting a qualified advisor (generally in that country) places you at risk. Also, moving cash into the USA greater than $10k violates customs laws - so I don't suggest it.

    Patriot Act (IMHO a crappy piece of probably anti-constitutional legislation) is all about tracking money flows - hence, earn what you can, declare, avoid taxes to the extent of the law, and don't try to pack cash around or run the risk of running afowl of the law.

    For what it is worth, I have personal contacts in NZ, AUS, and UK that I can tap for referrals.

    Kindest regards,

    Dan Morris
    Daniel D. Morris, CPA
    [email protected]

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    Banned Melonie's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    Dan is exactly correct about foreign countries expecting that money earned in their country will be reported. Whether or not those foreign earnings are 'taxed' by that country is a complicated matter, with much depending on what sort of tax treaties exist between that country and your home country. Where US girls earning money in most foreign countries are concerned, they must report the foreign earnings to both the foreign country and to the IRS. But because of tax treaties US girls usually have the option of either paying lots of income tax to the foreign country and claiming a tax credit on their US tax return, or paying a tiny bit of income tax to the foreign country plus paying a lot of income tax on their US tax return. Additionally, US customs has a $10,000 threshold for declaration of cash when crossing the US border if you bring the money back, and the US state dep't requires the declaration of foreign bank accounts held by US citizens if you leave the money in the foreign country. The US gov't also has extremely good channels of financial communication with the Commonwealth countries in particular i.e. UK, AU, CA, such that US girls attempting to 'forget' about money earned in these countries are indeed running a high risk.

    From my limited tax experiences with EU/western european countries, with the exception of the UK and CH (Switzerland) the tax agencies don't seem to be anywhere near as thorough in regard to cross-checking, automatic reporting etc. In fact, filing taxes in France or Italy almost seems more like an exercise in 'creative writing' than in accounting ! But that's just one dumb blonde's opinion.

    Where working in Aussie clubs is concerned, to do so requires that the foreign dancer obtain a temporary Australian Tax # in order to be hired as Goldie pointed out. This basically means that the Aussie gov't knows you are working and earning money in their country from the first night you start work. And the Aussies are VERY serious about income taxes.
    Last edited by Melonie; 11-03-2005 at 01:48 AM.

  8. #8
    aussiepunkshocker
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    Default Re: Australia/Overseas money transporting/tax problem

    Quote Originally Posted by tex010
    Aussipunk: I´ve understood the maximum amount of $ on cash in you´re allowed to enter/leave a country is something like 10 000US$/€... I´ve used Western Union sometimes (on other purpouses..) but I´m suspecting the gooddam authorities must be following your accounts as well. Though sending the $$ to someone personally might work-out is done in small amounts.. hmm.

    However there are people striving to get a top diplomas à ce momant to prevent me from doing this either, I´m affraid.

    And just for the possible authorities browsing though this thread; I´m determent to stay on the leagal path
    I've not known anyone to leave the country with more than $10,000 - I'm assuming that in 3 months you don't want to work too hard and are going to have some time to play also! I mean yeah you could save more than that, but on the other hand the industry isn't as good as it used to be here either, it can be very unstable at times and in some places it can suck quite a bit generally. If your travelling here and doing stuff you will be using some money, if you stick to the major cities and work alot for the 3 months then maybe you have to worry about it...

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    Member tex010's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    Thanks again everybody for responses, you´ve been a great help for me

    I´ll have to check these things here back home, and it´ll be couple of more months untill I´m flying to oz..

    Aussiepunk: at the moment I´m planning to stay from 1 to 2 years if everythings goes well there. 2 years is the max W & H visa I can get. And I can work up to 3 months under one employer. So I´d be like changing club, city town what ever every now and then. Thanks for warning, I´m not looking for to make any sorts of fortunes there, just curious about this sort of things in general.

    X

  10. #10
    aussiepunkshocker
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    Default Re: Australia/Overseas money transporting/tax problem

    Oh ok - sorry I thought you just meant 3 months all up, cool! Good luck and be sure to ask if you need help with anything else (-:

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    Default Re: Australia/Overseas money transporting/tax problem

    Tex, the tax rules usually change again if you actually live and work in a 'foreign country' for more than 1/2 of the tax year. You wind up paying the 'lion's share' of tax liability to the foreign country (filing as a resident alien), and little tax liability to your 'home' country. While I'm not intimately familiar with Aussie practices, I strongly suspect that working in Aussie clubs under a 'temporary tax #' is not going to cut it for a period extending beyond a few months.

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    Featured Member krys's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    My friend from Canada danced in Aus. She opened a bank account there where she put a lot of her money. She continued to travel after that through Europe and used the money from her bank account as her spending money etc. She transfered what was left to her account when she got home to Canada (a year later) and closed the account in Aus ...

    Just like that.

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    Banned Melonie's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    "Just like that" only works if you are a citizen of a Commonwealth country (UK, CA, AU, NZ), and travel/work in other Commonwealth countries (or in countries with reciprocal treaties, in this case the Commonwealth UK's membership in the EU). For clarity purposes in regard to most SW readers, the situation gets a whole lot more complicated for American and other non-Commonwealth girls.

  14. #14
    aussiepunkshocker
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    Default Re: Australia/Overseas money transporting/tax problem

    Quote Originally Posted by krys
    My friend from Canada danced in Aus. She opened a bank account there where she put a lot of her money. She continued to travel after that through Europe and used the money from her bank account as her spending money etc. She transfered what was left to her account when she got home to Canada (a year later) and closed the account in Aus ...

    Just like that.
    Hope that hasn't changed!
    In England (- I am English btw, have dual citizenship but have lived in Australia for the last 19 years...) I was unable to open a bank account when I went back there recently due to not having lived there long enough in recent years to have an established address - not sure what would happen if i wanted to move back there!

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    Featured Member krys's Avatar
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    Default Re: Australia/Overseas money transporting/tax problem

    Quote Originally Posted by Melonie
    "Just like that" only works if you are a citizen of a Commonwealth country (UK, CA, AU, NZ), and travel/work in other Commonwealth countries (or in countries with reciprocal treaties, in this case the Commonwealth UK's membership in the EU). For clarity purposes in regard to most SW readers, the situation gets a whole lot more complicated for American and other non-Commonwealth girls.
    Ahhh yes! V.good point. She was there on a working holiday visa too!

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